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Apple Retail: Going for the Money
ByOlivia Oran, TheStreet Tech Reporter , On Wednesday August 31, 2011, 7:30 am EDT
NEW YORK (TheStreet) -- Brooklyn Borough President Marty Markowitz caused a stir recently by making a publ be built in Brooklyn as part of a downtown revitalization effort. He was shut down repeatedly.
How could Brooklyn -- a cultural hub filled with musicians, artists and entrepreneurs -- not be a good match for Ap used widely and prized by creative types, Markowitz wondered.
The answer lies within Apple's core retail strategy: capitalize on already well-trafficked, well-to-do areas that don't other words, go where the money's at. "For Apple it has to be the right place, the right time and the right corner," said Faith Hope Consolo, chairman of division at Prudential Douglas Elliman, who has consulted for Apple in the past. "Unlike other retailers they aren't very well thought out."
Even as its stores have become somewhat ubiquitous -- the company is preparing to add 40 outlets globally 360 -- Apple, which could not be reached for comment for this story, is still expected to continue its practice of me estate properties.
" said Gary Allen.html. A $5. in 2001. focused on placing its stores in highly dense retail corridors where shoppers were already present. in Corner. according to research firm RetailSales. "I don't see any of the other consumer electronics companies like HP. On average. "Apple has created a retail system that is unbeatable. Gateway also didn't stock its stores with products. a former senior vice president at Apple who n Nuvel. in turn." said Allen. Apple opened its first in New York's SoHo neighborhood in 20 with stores in Los Angeles' trendy The Grove complex and on Chicago's posh Michigan Avenue. placing its products in the direct rout commuters -. Hermes." said Jay Elliot.S. Apple began to shift its focus on building so-called flagship stores in spots teeming with people willing to spend money.820). an increase of 22%. a blogger who run that tracks Apple's store openings. "They were willing to spend the money to locate where people were already wal five miles they'd walk 10 additional feet to get to the Apple store.Yahoo! Finance Page 2 of 4 While most of Apple's success comes from demand for its products.passing through one of the city's largest tourist spots. more than any other U.. "Apple put its stores next to a Victoria's Secret or an Abercrombie & Fitch. After consult customers merely ordered their computer." After the success of its initial mall stores. Apple's competition wasn't exactly making a Cheap real estate seemed to trump analysis of traffic and location. retailer -. Va. "They're a real brand search light that shine ou http://finance. its stores have become a key part of its brandin company tighter control around how its electronics are perceived and sold.7 million customers visited Apple retail outlets during the quarter. This strategy ultimately failed as consumers instead chose to shop at big-box stores like OfficeMax or Best Buy purchase a wider range of electronics and take them home right away.yahoo. They're "part marketing spend and part retail operation.many of them affluent -. Dell and Microsoft competing. Apple is also working on a store in New York City's Grand Central Terminal.974) and lu Coach ($1." Lessons in What Not to Do When Apple retail chief Ron Johnson joined the company in 2000._ylt=AgQ. computer makers like Gateway tended to place areas that weren't easily discoverable by potential customers. More than 73. Louis Vuitton.Apple Retail: Going for the Money . Full of light and glass and free of pushy salespeople and clu highlight the products and the lifestyle they help foster. a minus for nurturing a lasting in-store experience. paid for shipping and waited a week or so for delivery.com/news/Apple-Retail-Going-for-the-tsmf-56250661.including jewelry brand Tiffany & Co. Apple Apple's stores are the embodiment of its brand: simple. Apple.626 per square foot. 9/1/2011 . ($2..
. While Apple may have not have initially set out for its stores to become retail "destinations. That traffic of any U. 9/1/2011 . said Elliman's Consolo. Montreal and Zurich followed.C._ylt=AgQ. Locations in London. Boosted by sales of the iPhone. including a flagship in Hong Kong.. Apple's four stores there -. executive vice president at Newmark Knight Frank Retail.retail chief Johnson." he said. an analyst with Needham.com/news/Apple-Retail-Going-for-the-tsmf-56250661. The company first started going global in store in Tokyo's Ginza shopping district. Apple's retail strategy is already well-established and there's little chance for disruption. location. http://finance." Tenants in close proximity to Apple reportedly generate 30% to 50% more revenue because of the additional traffic Roseman.html. the number of international stores now represents 28% of Apple outlets. Company executives have said they've just scratched the surface in China." she said. Apple is taking a more high New Frontier Like many other luxury brands. who said he is leaving to helm J." analysts say they hav "Years ago when someone was building a shopping center you'd bring in Bloomingdales or Saks Fifth Avenue other tenants. Goldman Sachs analyst Bi note. "They're Louis Vuitton in the fashion world -. "The big box approach is just pure math -. One country that Apple has just started to penetrate: China.they're a must-have. "But Apple has re tenant.Yahoo! Finance Page 3 of 4 Apple is one of the most highly sought brands by landlords and shopping centers. Apple is looking overseas for expansion. with the p increase to 32% by the end of the fiscal year. Sydney. Not surprisingly. where revenue during the third quarter increased six billion.S. Penney analysts say it's unlikely that the departures will impact the company's growing network of stores.000 visitors per day. "They're not loo as closely and don't care as much about positioning because they want to pay less .it's just how many customers are in proximity.. "Apple can't just open stores there fast en Apple Retail Uncertainty Despite the recent loss of two key executives -. according to investment bank Needham & Co. a former executive at Wal-Mart and Target .Apple Retail: Going for the Money . "The big kahuna is China.two each in Beijing and Shanghai -.see more than 40." said Charles Wolf." said Jeffrey Roseman. Apple is far less price sensitive about real estate when compared to big-box names that also sell A Fleming. Apple has plans to open 25 more three years.yahoo..
commentary.Apple Retail: Going for the Money .com/news/Apple-Retail-Going-for-the-tsmf-56250661.com http://finance. www.. ComputerDistributers.com/Laptops Local Retail Find Retail Near You.Yahoo! Finance Page 4 of 4 --Written by Olivia Oran in New York. Learn Follow Yahoo! Finance on Twitter.com Apple Computers for Sale Free shipping sale. 10 Bank Stocks fo 10 Best Independent market research. become a fan on Facebook._ylt=AgQ. analysis and news.html.com/Retail New Laptops at Dell.Dell.yahoo.com Unique Styles & New Colors Now with Intel® Core™. Sponsored Links Product Mgmnt for Retail Cut costs . Buy apple iMacs at up to 50% off. 9/1/2011 ..StiboSystems.control your brand! Use STEP from Stibo Systems. www. See Actual Customer Reviews! Local.