// Burberry CEO Jonathan Akeroyd will set out his plan on Thursday to boost growth at the fashion retailer
// A key appointment he has already made is choosing Daniel Lee to replace Riccardo Tisci as chief designer
On Thursday Burberry’s new chief executive Jonathan Akeroyd will set out his plan to boost growth at the luxury British fashion retailer to the levels of its European rivals.
Akeroyd, who took over in April, will present his strategy alongside first-half results that will show the lingering impact of lockdown restrictions in China, Burberry’s biggest market.
He has already made his key appointment in choosing Daniel Lee to replace Riccardo Tisci as chief designer at the 166-year-old business.
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Burberry has lagged behind its competitors in the luxury fashion space like Gucci, Prada and Loewe in creating a sharp brand in recent years and Lee is set to play an “important part in re-igniting interest”, said Mario Ortelli, managing partner at advisory firm Ortelli&Co.
Lee, who was previously creative director at Kering’s uber-successful Bottega Veneta, should focus on strengthening its runway, streetwear, and menswear collections to appeal to younger consumers, said Ortelli.
That group is expected to buoy growth in the sector in the coming years with purchases being made from the age of 15, according to industry forecasts from consultancy Bain.
Burberry should also expand its leather goods and footwear business, Ortelli said.
Leather goods account for around 20% of Burberry’s sales versus 70% at Bottega Veneta.
The company’s former chief executive Marco Gobbetti set out a plan in 2018 to reposition the retailer. He raised prices, limited distribution to its own shops and high-end department stores and cut discounting.
The final stages of Burberry’s five-year plan were expected to see an acceleration in revenue growth and an increase in profits. But the pandemic thwarted that aim, with lockdowns forcing store closures and travel restrictions preventing tourism.
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