I think the lack of a celebration is likely more to do with Jobs seeing the AppleStores as a means to an end. He expects this channel to do what its done and can’t imagine how a store that sells such *amazing* (in his eyes) good could possibly fail. That doesn’t mean that there hasn’t been excruciating care lathered onto the Stores and it also doesn’t mean that the Microsoft stores will fare anywhere near as well (their fundamental business premise is so different from Apples). Indeed, that chess game is so one-sided that Jobs is playing it blindfolded.

Yet I still have two gripes concerning Ron Johnson’s leadership:

1.) After Johson made the first $200 million one has to wonder just how valuable his skills were in terms of continuing excessively high compensation. That is an exceptional earnings number that JLG indicates to have grown twice as large. The board should have reeled that in long ago.

2.) His retail team’s international myopia and lack of execution in non-English speaking countries has left money and profits on the table for Apple. Full stop.

Current opened store totals – http://en.wikipedia.org/wiki/Apple_Store

328 opened Apple Stores
296 stores in English language speaking US, UK, Canada and Australia
or
90% in English language speaking US, UK, Canada and Australia

It was 87% three years ago.

Retail is not just about the US. It has been the easy part and Johnson and team proves it. As Apple expanded its international portion of revenue over the last five years, retail stores should have been expanding accordingly and larger sales and profits could have been possible throughout. It did not happen.

Retail stores opened recently in 2011
2011 Q2 store openings – total = 1
324 Altmarkt-Galerie – Dresden (Germany) – March 31, 2011

2011 Q3 store openings – total = 3
325 Saint-Catherine – Bordeaux (France) May 14, 2011
326 La Part Dieu (Lyon, France) – June 4, 2011
327 The Oracle – Reading (UK) – June 25, 2011

Pitiful numbers as Johnson departs.

Article from 16 May 2008 is worth reading in its entirety as it spoke of the issue and how it has always been trouble for American managers.
http://www.macnews.com/content/donovans-views-apple-retail-talk-talk-walk-walk

“Today, Apple is about 50 percent international revenue and about 50 percent in the U.S.,” he [Ron Johnson] said. “We increasingly want to get our retail presence out in the other countries.”

I calculate that 95 percent of the Apple retail stores operate in areas/markets where the first language is English and that will have to change with any expansion into countries where 100 percent of the population prefer to speak their non-English language. This alone requires more bilingual capabilities in managers and staff just to get a store open for business.

Most American managers working domestically in the US will not be exposed to working life outside the US borders. The few differences in operating between domestic states, as well as the local society and habits are much less than what they encounter when operating between countries and regions.

In twenty-five years of living outside the US after being raised a mere 50 miles south of Cupertino for the first twenty four years, I realize the correlation of the lack of international living experience and understanding of differences in markets, society and culture have often led to less than stellar performance by American-based companies (and their managers) operating outside their borders, including those “borders of experience”. A much broader set of skills and viewpoints are required for “better” performance in reaching an increased international retail presence (of so many unique and different countries) and Apple is no exception.

Ron Johnson – Good luck with JC Pennys and their red hot highly demanded products.

Signal or single?

REPLY: You meant, of course, the June *2011* quarter, not 2001.

JC Penneys will never be an Apple store, but it gained a greater likelihood of future success with hiring Ron Johnson as CEO. I saw the Target and the Apple success .. expecting a similar good outcome at JCP.