Apple to Shift Retail Strategy to Larger, More Iconic Stores

[jouster]

Larger more iconic right now would be a great real estate PURCHASE strategy in this environment, but if LEASING, they are being more flamboyant at premium cost than anybody at a time of recession and budget gutting everywhere except governments where it is needed most.

The fact the stores "pencil" at 5x their peers "justifies it" but is it really just a marginal waste of cash on an "extreme statement on retail first impression"?

I suppose they could add a mezzanine floor to that West Side store later if they wanted to be more space efficient, but on LEASE?

They PURCHASED a new campus, a telco center, a new cloud farm, and now they LEASE retail space? Probably long term leases no less. Gotta question that one, especially in this market.

Rocketman

This sort of response is truly baffling. These stores - about 280 of them, and all of them small by retail standards - did $6.6bn last year. That's a staggering number for an industry dominated by a race to the lowest prices and online purchasing.

Do people really think that the architectural distinction and strong emphasis on design aren't factors? Do they really think Apple should be cramming every square foot with stuff? Can they not see the role of simplicity and sophistication in the experience?

OK, floor space is one thing, but how do 40 foot ceilings benefit me as a consumer? Somebody is paying for all this wasted vertical space. Guess what, it's you!

Personally, I think having smaller crowded stores is better in terms of generating revenue than having larger, empty looking stores. A crowded store has the "where it's at" feel to it that attracts the curious.

Bad move, Apple.

I'm guessing you haven't been to the Fifth Avenue store if you think either is ever empty-looking.

 

[LagunaSol]

Bring it on M$, how deep are your pockets.

Deep enough to buy everyone's love in America.

Well, not my love, but everyone else's.

 

[DMann]

Maybe all that glass with a southern exposure will lead to the re-introduction of matte screens on all Apples....


(pun intended...)

The glass front happens to be facing East.

So much for the directionally challenged.

 

[neutrino23]

When it comes to these iconic stores as Apple likes to say, I will start with the West side store ... Apple proclaims how eco friendly it is supposed to be yet opens a store like this that says nothing eco friendly and plenty of power wastage in lighting, heating & cooling.

Mixed messages and not necessarily a great way to project your brand.

We'd have to see the numbers to know. All that glass lets in a lot of natural light an warmth. I don't know what kind of glass that is and what the insulating properties are.

 

[DeepIn2U]

Perception of retail space

It may just be me, but I see a LOT of waisted space in these larger retail stores. I'm aware that they have a LOT of traffic so walking or standing space is important.

Personally, I feel if Apple is going to invest in larger retail store space & locations, they should begin to highlight their Macs NOT just to consumers & small/mid businesses (in pre-press/print, music, artistic, and K2), but also in a corporate setting. I'd LOVE to finally get to walk into these large NY retail stores, or overseas when they show up, to see a small wall section dedicated to XServes - even if their running their sites, or store retail processing.

Imagine walking into these larger stores and seeing specific staff swap out a hard-drive for storage because its full, or installing a new XServe or XServe RAID component, or working on a display connected to OS X Server on the XServe rack - showing a quick live spreadsheet of the days total sales and staff clapping emphatically as if the store just opened?!

I'd love to see some new start-up business, consisting of larger than 500 employees have a few representatives come in and speak to a knowledgeable professional about XServe, XServe RAID (and competing HDD Rack-mount products), XSan, etc and SEE it demonstrated.

Of all the retail stores in Toronto there is only 1 that I've seen have Apple XServe products in the open to show off and are actually used by the store (total of 6) - and that is a reseller-retailer at the corner of College & Spadina (the heart of computer products).

The use of XSan, OS X Server products and Apple XServes by Standford, Carnegie, and other Universities needs to be further highlighted beyond iTunes University podcasts/videos/etc to other Universities outside of the USA and to businesses; unless already being done.

 

[cmaier]

It may just be me, but I see a LOT of waisted space in these larger retail stores. I'm aware that they have a LOT of traffic so walking or standing space is important.

Personally, I feel if Apple is going to invest in larger retail store space & locations, they should begin to highlight their Macs NOT just to consumers & small/mid businesses (in pre-press/print, music, artistic, and K2), but also in a corporate setting. I'd LOVE to finally get to walk into these large NY retail stores, or overseas when they show up, to see a small wall section dedicated to XServes - even if their running their sites, or store retail processing.

Imagine walking into these larger stores and seeing specific staff swap out a hard-drive for storage because its full, or installing a new XServe or XServe RAID component, or working on a display connected to OS X Server on the XServe rack - showing a quick live spreadsheet of the days total sales and staff clapping emphatically as if the store just opened?!

I'd love to see some new start-up business, consisting of larger than 500 employees have a few representatives come in and speak to a knowledgeable professional about XServe, XServe RAID (and competing HDD Rack-mount products), XSan, etc and SEE it demonstrated.

Of all the retail stores in Toronto there is only 1 that I've seen have Apple XServe products in the open to show off and are actually used by the store (total of 6) - and that is a reseller-retailer at the corner of College & Spadina (the heart of computer products).

The use of XSan, OS X Server products and Apple XServes by Standford, Carnegie, and other Universities needs to be further highlighted beyond iTunes University podcasts/videos/etc to other Universities outside of the USA and to businesses; unless already being done.

Large businesses do not buy hardware by walking into retail stores. They also don't research hardware that way.

 

[AidenShaw]

The glass front happens to be facing East.

So much for the directionally challenged.

(link to useless image removed)

Perhaps the geographically challenged should think before posting.

The front (Broadway) is facing east, so until solar noon it gets direct sun.

The south-east part of the building is a south-south-west facing glass wall, so it gets direct sun until mid-afternoon.

The roof of the building is glass, and that being on the north-east corner of the intersection, with no tall buildings to the south or west, it gets full sun throughout the day.

This view is looking north-north-west - you seriously want to claim that a lot of sun won't be in that building most of the day?

(click to enlarge)


Your attempt to harass me gets a FAIL - because the Appleminster Cathedral gets a lot of sun.

 

[neutrino23]

This photo is awesome.
http://gothamist.com/2009/11/12/the_uws_gets_its_very_own_apple_sto.php?gallery0Pic=11#gallery

It shows that the store has a glass ceiling and two glass walls. Only that back of the store is stone. This will be like an atrium with NY as the backdrop. Quite a piece of art.

Note that the vertical glass panels are one piece, some 40ft tall. I wonder who crafted those? PPG?

The photo of the glass staircase is like out of Star Trek.

 

[DMann]

Maybe all that glass with a southern exposure will lead to the re-introduction of matte screens on all Apples....


(pun intended...)

Perhaps the geographically challenged should think before posting.

The front (Broadway) is facing east, so until solar noon it gets direct sun.

The south-east part of the building is a south-south-west facing glass wall, so it gets direct sun until mid-afternoon.

The roof of the building is glass, and that being on the north-east corner of the intersection, with no tall buildings to the south or west, it gets full sun throughout the day.

Your attempt to harass me gets a FAIL - because the Appleminster gets a lot of sun.

Backpedalling again are you? You clearly stated: southern exposure.

Tall hi-rises directly across the street, (Copely, etc.) as well as others which have recently been built along 66th street

will block sunlight sufficiently throughout the day. Your attempts at saving face are both lame, and pitiful.

 

[puma1552]

I really wish they would build one in Kobe, Japan. The Osaka one is ok, but as the most internationalized city in Japan, and one of the most beautiful/upmarket cities, Kobe really should have one.

 

[AidenShaw]

Backpedalling again are you? You clearly stated: southern exposure.

Tall hi-rises directly across the street, (Copely, etc.) as well as others which have recently been built along 66th street

will block sunlight sufficiently throughout the day. Your attempts at saving face are both lame, and pitiful.

Directly across the street (67th) is a 4 or 5 story building. The highrise buildings are further away.

Are you claiming that from the building you can't see southern sky? That's what "southern exposure" would mean to me.

Anyway, a glass building with even northern exposure would be a place where glossy panels would be a harder sell.

 

[LagunaSol]

Anyway, a glass building with even northern exposure would be a place where glossy panels would be a harder sell.

You should set up a little sales cart in front of the store where you can peddle your Dells. (But not the glossy screened ones, of course.)

Oh, and I saw on TV that people are more inclined to ignore Apple stuff and opt for cheapo PC alternatives if you wave stacks of cash in their faces. You might want to give that a try.

 

[chairguru22]

I like the high ceilings and it definitely won't feel as crowded. It also won't get as hot as easily with all the people crammed into the stores and hot computers running all the time. I worked in an Apple Store and we were one of the highest in traffic and smallest in size. It got so hot and smelly in there.

 

[inkswamp]

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

Agreed. Last couple times I've been in the Seattle store near the university, it was packed, felt very claustrophobic. I was in the one in Tysons Corner in Virginia about 5 years ago and it was fairly quiet, about 10 people. I wonder if that's typical, if these stores are getting busier like that.

 

[2992]

I'm almost surprised there's not a floor to ceiling Steve Jobs portrait, watching over all....

+1

)

 

[2992]

A 99-year lease at today's rent makes a lot of sense.

99year + 99day + 99hour + ... = lot of sense, indeed.

 

[DMann]

Perhaps the geographically challenged should think before posting.

The front (Broadway) is facing east, so until solar noon it gets direct sun.

The south-east part of the building is a south-south-west facing glass wall, so it gets direct sun until mid-afternoon.

Directly across the street (67th) is a 4 or 5 story building. The highrise buildings are further away.

Are you claiming that from the building you can't see southern sky? That's what "southern exposure" would mean to me.

Anyway, a glass building with even northern exposure would be a place where glossy panels would be a harder sell.

This does not change the fact that you initially stated southern exposure.

The building, directly across the street, happens to be a 39 story hi-rise, set behind the Gracious Home store.

Perhaps, if you weren't so geographically challenged, you might have noticed that Broadway, as well as the building's exposure,

faces NE at 67th street, since Broadway angles east toward Columbus Circle before aligning south - this making your latest

presumptions all the more preposterous. From nowhere, inside of the building, can one see south, let alone the southern sky,

as it is sufficiently blocked by the 32 story building above the Pottery Barn, across 67th street. Your attempts to cover

your mistakes grow increasingly feeble - backpedal away.

 

[Pikemann Urge]

In New York everyone tries to pack in as much retail space as possible, which leads to small, crampt spaces.

I think there is more to retail than just maximizing dollars per square foot.

There's no "I think" about it! You are right. We have an area manager who thinks she's God's gift to retail - she deliberately tried to force us to put crap in space better used for people to walk through. The angels saved us from that.

If anyone thinks that retail is only about product per square metre, go work in a warehouse. Actually, no, even warehouse stores (e.g. hardware) have ample empty space though which you can amble.

EDIT: What is with Steve Jobs' love for cold, drab, blank walls? FFS! Where architecture is concerned his taste is questionable.

 

[koobcamuk]

That looks really bare.

How on earth is this "more iconic"?

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

They're balls, not dots.

 

[DMann]

You should set up a little sales cart in front of the store where you can peddle your Dells. (But not the glossy screened ones, of course.)

Oh, and I saw on TV that people are more inclined to ignore Apple stuff and opt for cheapo PC alternatives if you wave stacks of cash in their faces. You might want to give that a try.

If the Dell's don't sell, he'll likely be pushing his used Lenovo Multi-Touches, complete with grease stains and 'poke' marks,

all the while pilfering Apple's Wi-Fi service from the sidewalk. Either way, in typical MS fashion, he'll flash the bills while

selling the units at a loss - "nothing like a little incentive for 'dem bargain hunters."

 

[aumnevergiveup]

when apple open the store in Indonesia?
i want it badly

 

[iSamurai]

it looks like a giant empty warehouse from the inside photo...

 

[iPhysicist]

Anyone of you even noticed that most (or even all) of the Items that could be sun-problematic are displayed in Souterrain while in ground floor are illuminated shelfs in the walls with some other stuff! Sun is no issue!

You must think they are to stupid to plan a building, are you?

 

[Slarti Bartfast]

I've never been to that area, but from the photo's it looks really easy to reverse a car through the front and take whatever you want - if that shop was built here there would be fugly steel shutter over it at night and rows of steel posts to stop ram raiders !!!!

Maybe I need to move !

I like the space, all the shopping centre shops we get are full of noisy kids surfing on Saturdays - the parents seem to use the Apple store as a creche !

 

[tabasco70]

They really like those stairs, don't they.
The large store looks very lofty.