Apple should look to The Loop
A decade ago Apple depended on a few retailers to display and sell their computers. These retailers did a poor job, relegating the Macs to the back corner of the store. Apple decided they needed to open their own retail stores to get their products in front of consumers. May 15, 2001 their first store opened in Tyson’s Corner Center mall in the D.C./Baltimore area. The St. Louis region has two Apple Stores – one at West County Center and the other at the Galleria. Not all stores are located in enclosed malls.
Many cities have the Apple store along retail streets. The San Francisco store above opened on my 37th birthday.
As of November 2009, Apple has opened 282 stores; 221 in 41 US states, 24 in the United Kingdom (20 in England, two in Scotland, one in Northern Ireland and one in Wales), 14 in Canada, 7 in Japan, 6 in Australia, 3 in Switzerland, 2 each in Germany, Italy and France and 1 in China. (Source: Wikipedia)
The stores have been a huge hit.
Apple began building its own outlets in 2001, and they have proved enormously profitable. A record 42.7 million customers visited Apple Stores last quarter, generating $7.6 million in revenue per store, up 15% year over year. All told, Apple Stores brought in $6.6 billion in revenue in fiscal 2009, more than the whole company generated ($5.4 billion) in 2001.
Basement“We have the highest performing retail stores on the planet,” boasts Ron Johnson, the former Target marketing whiz who runs Apple’s retail division. Johnson told the press on Thursday that the average Apple Store generates $4,300 per total square foot (including storage space), the equivalent foot for foot of 5 Best Buys and 15 Target stores.
The “significant” stores (what Apple used to call its flagship stores) do much better. According to a Bloomberg report last summer, Apple’s big glass cube on 59th St., across the street from the old Plaza Hotel, is the highest-grossing retail outlet on Fifth Avenue, bringing in an estimated $35,000 per square foot, nearly double the gross of Tiffany’s sales floor and triple Harry Winston’s. (Source: CNN/Fortune)
With this great success recently Apple announced plans to keep expanding.
November 12, 2009,
Apple said Thursday that it expects to open 40 to 50 new retail locations next year and that it will focus on bigger flagship stores in major cities.
At a media preview of its fourth New York store, this time on the Upper West Side, Ron Johnson, Apple’s senior vice president of retail, said the company sees this location, as well as its glass cube on Fifth Avenue and newly opened store at the Louvre in Paris, as “significant stores.”
Its new stores, both significant and standard, will be larger, to accommodate the width of three product-display tables and bigger Genius Bars.“Our stores are too small,” Mr. Johnson said. “Our biggest challenge at the Genius Bar – we cannot build them big enough.”
More than half of Apple’s 40 to 50 new retail locations in 2010 will be outside the U.S., including the United Kingdom, Canada, Australia, Italy, Switzerland, Germany, France and China, he said.
Apple doesn’t currently have plans to open more stores in Manhattan, Mr. Johnson said, but when asked if there were any plans for neighboring borough Brooklyn, he left it at, “Stay tuned.” (Source: Wall Street Journal)
While the West County location just got revamped the Galleria store is quite small. So this is where the Loop comes into play. I think Apple should build a new location on the Delmar Loop to replace the small Galleria location. The portion East of Skinker is ideal with restored buildings, modern new construction and vacant land a block from a rail transit station. Specifically I’m referring to the site between Big Shark Bicycle and Miss Saigon Vietnamese restaurant (map/aerial). Apple would then be in a new building of their own design on one of the most popular streets in our region.
The site is bigger than they would need so the total project would include more storefronts. There are other vacant sites both East & West of Skinker but I think this one is best. Hopefully Apple’s retail scouts will find this post and check out the Loop.
– Steve Patterson