In 2010, the company opened a store in what used to be a bank, just across the street from Paris' famous opera house (Click Image To Enlarge)
The Apple Store is an incredible retail success.
On a quarterly basis over 100 million people shop at the company's 437 worldwide stores during the fiscal year ending September 30, 2014. According to the San Jose Mercury News, Apple stores generate more revenue per square foot than any other U.S. retailer.
Number of Apple Retail Stores Worldwide by Year - Fiscal Year September 30, 2005 Through September 30, 2014 - Statista (Click Image To Enlarge)
According to Fortune Magazine, Apple extended its lead over the top 10 U.S. retailers with its stores generating a staggering $4,798.82 in sales per square foot on an annualized basis at the end of 2014, according to brand new data provided to Fortune by eMarketer.
The store on New York's Fifth Avenue consists of a 32-foot glass cube that's entirely self-supporting. A glass staircase leads into the store below (Click Image To Enlarge)
That compares to $4,551 earlier in 2014 and well ahead of Apple’s closest rival on this front, luxury jeweler Tiffany & Co, which saw sales of $3,132.20 per square foot. (As a point of comparison, department stores such as J.C. Penney and Macy’s generate $160 to $200 per square foot — although to be fair, aisles and aisles of low-priced clothes and towels are less of a draw than than highly coveted electronics.)
Apple opened its first store in the southern hemisphere in 2008, a three-story shop located in the middle of Sydney's shopping district (Click Image To Enlarge)
Part of what has made Apple stores so successful over the years is the stunning design details put into each one.
Inside, all of the stores look pretty much the same — Apple trademarked its store layout in 2013 — but each one offers its own unique look from the outside.
In 2009, the late Apple CEO and founder Steve Jobs hired famed British architect Norman Foster to take over the design for its upcoming campus 2, dubbed the "Apple Spaceship" in Silicon Valley. Foster has also designed Apple's future retail stores. That development, along with the hiring of former Burberry CEO Angela Ahrendts as retail chief, is a sign that Apple's retail dominance shouldn't be ending anytime soon.
Apple's retail store in Istanbul is the first location designed by Norman Foster. It's recessed into the ground and looks a lot like a MacBook from above (Click Image To Enlarge)
If you own a piece of Apple tech there's a good chance you've visited one of their retail locations. Every detail of each Apple store has been designed and planned out to influence the customer into spending more money as they shop and browse. Here's how it works.
In Beijing's Sanlitun district, a large stainless-steel structure makes an imposing impression (Click Image To Enlarge)
COMMENTARY: I've written about the Apple retail stores before, and came away amazed at the number of customers that visit the stores each day, the simplicity of the store design and layout of each store, high level of customer service they offer, and the way Apple products are displayed to appeal to evangelists who lust for their products. It is all about offering a great customer experience from beginning to end.
The Apple store in Shanghai's Pudong district is one of its most stunning. A glass cylinder leads to the main part of the store, situated underneath the courtyard (Click Image To Enlarge)
Every detail of each Apple store has been designed and planned to influence the customer into spending more money as they shop and browse. The following video explains how each store is deliberately designed to make their customers spend more money.
Apple store employees are known for their "insanely great service," They are not known as store clerks or associates, but as "Specialists," for their knowledge of all Apple products. Apple hires Specialists for their "magnetic personality as much as, if not more than proficiency." You can teach proficiency, but personality is a natural trait that you either have, or you just don't. Here's a video that illustrates this point.
I had a look at Apple's Annual Report for the fiscal year ending September 30, 2014, and the company had 437 stores generating $21.5 billion in net revenues and employing 46,200. The following table presents Retail information for the years ended and as of September 27, 2014, September 28, 2013 and September 29, 2012 (dollars in millions):
Apple Stores, Net Revenues and Head Counts (Click Image To Enlarge)
The growth in Retail segment net sales in 2014 was primarily driven by increases in net sales and unit sales of iPhone and Mac, partially offset by declines in net sales and unit sales of iPad and iPod. With an average of 424 and 403 open stores during 2014 and 2013, respectively, average revenue per store increased to $50.6 million in 2014 from $50.2 million in 2013.
The growth in Retail segment net sales during 2013 was primarily driven by increased unit sales of iPhone and iPad following the new product introductions in the first half of 2013 and increased sales of services. With an average of 403 and 365 open stores during 2013 and 2012, respectively, average revenue per store decreased to $50.2 million in 2013, compared to $51.5 million in 2012.
The Retail segment’s operating income was $4.6 billion, $4.0 billion and $4.6 billion during 2014, 2013 and 2012, respectively. The year-over-year increase in Retail segment operating income in 2014 was attributable to higher net sales and higher gross margin primarily due to a higher mix of iPhone. The year-over-year decrease in Retail segment operating income in 2013 was primarily attributable to lower gross margin similar to that experienced by the Company overall, partially offset by higher net sales.
Courtesy of an article dated October 16, 2015 appearing in Business Insider, an article dated May 27, 2014 appearing in Business Insider, an article dated March 13, 2015 appearing in Fortune Magazine, the fiscal year ending September 30, 2014 Apple Annual Report (Form 10-K), and an article dated September 4, 2015 appearing in De Zeen Magazine
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