Burberry as a Role Model in the Retail Industry

The designer clothing company, Burberry, has managed to increase its sales and implement effective budgeting strategies in the current global economic environment.

Most of the company's sales have been generated by growth in China; the company now operates 50 stores in China. The company also cut costs by eliminating "unprofitable" items, limiting overstock, and minimizing discounts and expanded its consumer base with the introduction of a ready to wear and a casual line. The company expects positive results in the form of continuous increasing sales in the future.

Other luxury retailers can look to Burberry as a model of how to survive in the current economic environment. Concentrating on what really makes a profit, like global expansion and universal availability, luxury retailers can report positive sales in a time of limited consumer spending.

Burberry has also exemplified that China is a market that retailers should look to. Growth in China has made it a profitable place to do business and it would be advantageous for retailers to look into tapping into the Asian market.

http://online.wsj.com/article/SB10001424052748703673604575549360918756070.html?mod=WSJ_Retailing_leftHeadlines