The troubles within Burberry and the wider luxury market are intensifying the pressure on Mr Bailey, who is already facing some resistance from the City over his controversial dual role and whether his lack of corporate expertise will hinder his ability to steady the business during a torrid time for the sector. The company refused to comment directly on reports that Burberry was looking to hire another senior board member to support Mr Bailey. However, Mr Bailey admitted "we know we have skills we need to beef up". Carol Fairweather, chief financial officer, added that the company was looking at "opportunities to evolve the way we work. We are looking at the size of the organisation and the capabilities we might need to bring in whether experts in retailing or digital". "The appointment of a commercially savvy number two is now imperative to deliver against the ambitious plan laid out," said Paul Thomas, senior consultant at Retail Remedy.
Burberry is to cut jobs and reduce its product range by one-fifth in the hopes of saving about £100m a year, following a 10% fall in profits, primarily due to a sharp slowdown in the retailer's largest market, China.