Apple to Shift Retail Strategy to Larger, More Iconic Stores

[MacRumors]

Ground Floor of Apple's Upper West Side Retail Store
Gizmodo reports on a number of tidbits offered by Apple Senior Vice President of Retail Ron Johnson at a media preview event held today at the company's Upper West Side store scheduled to open in New York City on Saturday. Among the most notable items of interest were comments that Apple is looking to move forward aggressively on store openings in the coming year and is adjusting its strategy to include larger stores and more "significant stores" offering iconic presences such as the Upper West Side store.

Apple realized they were going too small with their stores, so now all of their stores will be at least "three tables wide." In other words, they're going to be bigger. They're also going to be opening more stores next year, more like 50. More of them will be "significant stores," iconic ones like the Fifth Ave. store with the Apple Cube. And they'll be going more international, adding stores all over Europe, like the UK, Paris and two in Shanghai getting those "significant stores."

Johnson also noted that the company's retail stores are averaging approximately $26 million in yearly revenue, only slightly below that of Macy's, Target, and Best Buy, but with much smaller stores leading to per-square-foot sales five times that of Best Buy. On the topic of Microsoft's retail stores, Johnson acknowledged the competition but offered up a simple response to the challenge, claiming "It's nice to have a 10-year head start."

Finally, Gizmodo offers up an inside look at the Upper West Side store, calling it a "temple" to the company's products.

I can't tell you - and the pictures can't show you - how utterly open and expansive the room feels. Apple says it has more demo units than any other store in the world. To give you an idea of the space, the walls are 45 feet tall, and could fit 11 Apple 5th Avenue Cubes inside. It's the spareness that's breathtaking. It's cold. Not literally, but the stone walls, the glass, the sheer space rob it of any sense of warmth or feeling. The only sense of life in room is the products. It's a temple to them, really.

Basement of Apple's Upper West Side Retail Store




Glass Staircase in Apple's Upper West Side Retail Store

Article Link: Apple to Shift Retail Strategy to Larger, More Iconic Stores

[X5-452]

I'm not sure how I feel about a store that feels "cold"

Then again, I'm sure the sheer number of people that will be inside it 24'7" will give it the feeling of being cramped and congested.

[thegoldenmackid]

More intelligent then the having two stores a mile apart.

[Toe]

Look closely at that picture and note that all (or almost all) of the people there are employees.

In other words, that's what it looks like when it's empty.

And also... wow, what a staffing budget.

[DipDog3]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_2 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7D11 Safari/528.16)

Iconic?

Okay, but how about one in my home town?

[jaw04005]

I would appreciate it if they would build one in my town too. According to IFOAppleStore, they got permits some four years ago. I’ll even take one with only two tables wide.

I have mixed feelings about this store. It’s almost like it should have had three levels. That’s an awful lot of ceiling space.

By the way, the “dots” that are at the kid’s tables cost a small fortune. I looked into them a few years ago.

[crees!]

Notice the majority of hands held together behind ones' back.

[donga]

now it's like a landmark you have to visit

[dba7dba]

I'm all for it. When I go to my Apple Store, it feels so crowded with so many people.

[talkingfuture]

I like the idea, the big Apple cathedral feature stores look much cooler than the dull identikit shopping centre ones like the trafford centre store.

[miketcool]

I do enjoy the expression of the arched steal beams. Separating the tension member like that is soooo sexy.

[distortedloop]

I don't particularly care for the wide open spaces design of the Apple Stores. My local one, up until recently, wasn't all these tables in the middle, there were actually shelves of stuff you could look at and grab the product. Now everything I want, the salesperson has to go get it from the back for me, even a stupid mouse.

I guess it's a marketing thing, let the passer-bys see how many people are inside, and come in themselves to see what all the excitement is about...?

[whooleytoo]

Originally Posted by DipDog3

Iconic?

Okay, but how about one in my home town?

I'd be happy with one in this country!

That does look very cold and featureless though. Filling it up with customers isn't going to change that, unless they're climbing up the walls. It's not just the amount of blank wallspace, but all the colours look drab too.

No doubt they'll still make millions out of it!

[Maserati7200]

Can't wait! I'm in that area every weekday! That's going to be my main Apple store to go to now, it's such a hassle to get to 5th Ave.

[DivineEvil]

Kewl the staircase is the same as the Boylston st. Apple Store in Boston, MA . That is where I got my MBP .

[WhySoSerious]

glass stairs.....ummm...upskirt shots?

[Macminiintel]

Originally Posted by Toe

Look closely at that picture and note that all (or almost all) of the people there are employees.

If you read the post you'd know that the store hasn't opened yet, it opens on Saturday, so the employees are there checking it out for the first time I assume.

I would really truly love it, if the UK got a major brand new flagship Apple store, I mean our Largest is Regent Street in London. Thats an amazing store, but opened over 5 years ago. We need something new like open one in York or something . They could mix ancient architecture what Yorks full of, with Apple's ideas/tech like there modern glass ceilings, aluminium walls, Maple wood desks, it would look amazing

[adamw]

Nice layout and design of this Apple store! Like the architechtural design of the roof and building also. Should be profitable, and also serve as a great ad for Apple products.

[ToM7]

god dam . this is the amazing apple store that ive ever seen

[synth3tik]

I remember back when Mars Music closed, the CEO gave those exact reasons why the stores failed.

Apple tends to do better at things then other companies, but I think this will still fail.

I mean I don't what a huge sterile iconic store. I want a store that I feel welcome at, were I can find the things I like a good prices. That's what Apple should be focusing on on a retail level.

Judging from those photos, I would not step foot into that store. It's horrible, looks so half-assed.

[SirOmega]

Supposedly there is another 20,000 sq ft store going in right on the Las Vegas strip (the new City Center between Bellagio and Monte Carlo). The retail area its in opens early/mid December, who knows when the Apple store inside will open...

[Macminiintel]

Originally Posted by synth3tik

Apple tends to do better at things then other companies, but I think this will still fail..

why will it fail?, because you think so. I don't see any reason. its just one of Apple's iconic stores, which take your breathe away once you enter. It will be full of people on opening day with tourists, locals etc.

[kingtj]

The last couple Apple stores I visited (one in Memphis and the St. Louis, MO West County store) were undergoing renovations, which seemed to amount to opening them up for more foot traffic, at the expense of having actual products on display.

I know they have issues with the stores getting too crowded, but the appropriate response to this is to open more stores or move to a bigger one ... not redesigning it so everything is in the back room. I just wanted a bluetooth wireless keyboard, and they had to get that from the back room for me, last time I was there!

Personally, I enjoy the overall shopping experience of the "Mac HQ" mom and pop type store in St. Louis, vs. the official Apple stores -- and variety of merchandise on display is the key factor. Macs are already derided by the general public for not having enough software choices or enough peripherals and expansion options. Why bolster that perception by not even putting the items you stock out on display?

Originally Posted by distortedloop

I don't particularly care for the wide open spaces design of the Apple Stores. My local one, up until recently, wasn't all these tables in the middle, there were actually shelves of stuff you could look at and grab the product. Now everything I want, the salesperson has to go get it from the back for me, even a stupid mouse.

I guess it's a marketing thing, let the passer-bys see how many people are inside, and come in themselves to see what all the excitement is about...?

[VaatiKaiba]

A store in Ireland would be nice... I'm so envious everytime I'm in London / the US!

[kingtj]

As an amateur/hobbyist musician myself, I can tell you, Mars Music simply failed because they didn't stock the items musicians really wanted!

Guitar Center was FAR better at making smart choices about which brands and products to carry. Mars was overloaded on school band instruments, sheet music, and inexpensive "starter" type guitars and amps. They had too many toy Casio type keyboards and not enough "real" music synthesizers, too. They seemed to think music sales were all about offering entry-level stuff at the lowest possible prices ... when in reality, anyone who'd be a regular shopper and spend money there wanted better goods.

Originally Posted by synth3tik

I remember back when Mars Music closed, the CEO gave those exact reasons why the stores failed.

Apple tends to do better at things then other companies, but I think this will still fail.

I mean I don't what a huge sterile iconic store. I want a store that I feel welcome at, were I can find the things I like a good prices. That's what Apple should be focusing on on a retail level.

Judging from those photos, I would not step foot into that store. It's horrible, looks so half-assed.