All the signs and banners said “JC Penney,” but during the company’s press presentation Wednesday, there were plenty of references to Apple and its retail stores. During the 90-minute briefing, former Apple retail chief Ron Johnson explained his plans to remake JCP into “America’s favorite store” over the next three years, admittedly drawing from his 10-year stewardship of Apple’s stores. In fact, the very first item on Johnson’s agenda was to explain why he left Apple, and the very first presentation slide was an Apple logo. read more…
In the world of Apple retail secrets, even the revelation of a single number is significant. In this case, a story in the Business Record outlined the commercial retail market in the Des Moines (Iowa) region, including at the Jordan Creek Town Center, where an Apple store is located. Tyler Dingel of the firm CBRE/Hubbell Commercial told a reporter that the 3,000-square-foot Apple store at the mall generates about $25 million in sales, a figure that Apple would never divulge. Dingel didn’t mention the time period for those sales—quarterly or annual. However, the figure probably is based on quarterly sales, since Apple’s latest average per-store revenues were $17.1 million. In fact, that average is heavily weighted at the top end by high-profile and other large stores, making the Jordan Creek store’s sales even more impressive when compared to other smaller stores.
Apple has one of the most valuable brands in the world, and the company’s retail stores are arguably the most successful method of promoting that brand. In fact, the company has designated 20 of its stores as “high-profile,” and has expensed certain brand awareness expenses for these locations to the corporate ledger, and not the Retail segment. But according to an Apple filing with the Securities and Exchange Commission (SEC) today, that accounting policy is ending without explanation. “Prior to 2012, the Company allocated to corporate expenses certain costs associated with its high-profile retail stores that have been designed and built to promote brand awareness and serve as vehicles for corporate sales and marketing activities,” Apple stated in its filing. It then explained, “Starting with fiscal 2012, the Company no longer allocates these costs to corporate expenses.” Further, Apple also said it retroactively reclassified $24 million in fourth quarter 2011 high-profile store expenses from corporate back to the Retail segment. The accounting change won’t substantially affect Retail segment financials. The company has expensed an average of $95 million a year over the past four years to corporate for high-profile stores—just 1.3 percent of the Retail segment’s latest quarterly profit, which totaled $1.8 billion. The accounting change wasn’t mentioned by Apple executives during yesterday’s quarterly conference call with analysts to announce Apple financial results.
Apple’s retail stores achieved new records for sales, profit and visitors during the holiday quarter, helping the company reach overall goals that defied the overall personal computer market. Revenue for the stores was $6.1 billion, up 59 percent compared to the same quarter of 2010, while profit soared to $1.8 billion, up 30.8 percent. Sales of Mac computers at the stores reached a new record of 1.1 million, with about half new to the Mac. Visitor traffic of 110 million in the pre-holiday period established a new record. Overall, Apple reported records in almost every category—revenue, profit and sales of iPhones, iPads and Macs. Only iPod sales declined during the quarter, as customers shifted to the more versatile iPhone. Revenue for the quarter was $46.33 billion, and profit was $13.06 billion. Sales of the iPhone were up 128 percent compared to the same quarter of 2010, and Mac sales were up 26 percent. Sales of iPads increased 111 percent from the year-ago quarter, but sales of iPods declined 21 percent. In a conference call with analysts, CEO Peter Oppenheimer mentioned the new EZ Pay and Personal Pickup services at the stores, and how they’ve streamlined purchases. But he gave no specific figures for how many customers used the services during the quarter. Oppenheimer did not mention any new retail stores that are opening soon, or how many would open during fiscal 2012. read more…
After a year of rumors, two future stores in France may be on schedule for a 2012 grand opening. According to the MacGeneration Web site, Apple has filed an application to operate a retail business at the Quatre Temps shopping center northwest of city center, at the La Défense complex of office buildings, a train station, museum and other retailers. The area is a tourist destination, but also is a crossroads for thousands of daily office workers. The exact location of the store within the shopping isn’t know, but it could open by year’s end. Meanwhile, in Strasbourg a passerby has noticed increased activity at a retail space at Aubette in city center, possibly indicating the start of construction for an Apple store. The building dates to 1765 as a military barracks, but has hosted all types of commercial enterprises since then. In 2008 some ground floor space was converted to retail, where Apple’s store could open by year’s end.
According to a just-released Apple report on supplier responsibility, at least 156 companies provide materials to help create the company’s products. But it’s little known that an almost equal number of companies contribute materials to create the company’s retail stores. Drawing upon a wide range of sources, IFO has compiled a list of 141 companies both big and small that contribute every last object that Apple store visitors see, and many that they don’t see. The companies are headquartered around the world in at least six countries. The products range from ordinary coat hooks used in the back-of-house, to the specially-formulated, low-iron glass in the stores’ display windows. Some companies, like General Electric (glazing sealant), are a household name. But others, like Pawling Corp. (wall guards), are virtually unknown beyond the world of architects and designers. When building its stores, Apple is very particular about every aspect, either requiring specific brands and models for parts and materials, or providing standard construction material specifications for contractors to strictly follow. Apple’s devotion to design means that step stools, filing cabinets, lighting fixtures and even toilet seats are the same across the entire chain. supplier list
A passerby took this amazing photo of the interior of the SoHo (NYC) Apple retail store in the midst of its complete reconstruction and expansion. This view from the front of the building on Prince Street shows the original five front steps in the foreground (covered with metal), support scaffolding and tons of new structural steel. The final store will be larger by incorporating about 5,000 square-feet that was vacated last year by the U.S. Postal Service at the rear of this space. Otherwise, this view seems to indicate that the store will re-open with a nearly identical interior configuration and design, including the glass staircase and skylight. It’s possible the store could open by the end of 2012. Click on the photo for a larger view. (photo by Michael)
The chairman of a New York City real estate firm may have slipped up when he told a newspaper reporter that Apple’s real estate team approached him several months ago, and is now in preliminary talks to open a retail store along Austin Street in Forest Hills, Queens. Yeheskel Elias told the New York Daily News that, “I will do anything I can to bring Apple in.” Elias did not provide details of his talks with Apple, or mention specifically where Apple was scouting. Apple usually demands confidentiality for its real estate dealings, so Elias’ comments are significant. The company even posted a copy of the newspaper article on the “Press” page of its Web site. Austin Street runs for about three miles through the center of the Forest Hills neighborhood of Queens. The area is a mix of national retailers along Austin Street, and residential homes and apartments beyond. The Heskel Group manages several properties along Austin Street, including stores occupied by Ann Taylor Loft, Staples, Gap, Duane Reade and The Disney Store. Several of the properties would fulfill Apple’s requirements, including the 22,000 square-foot, two-level building that houses the Gap store. There are existing Apple stores in Manhattan and Staten Island, but none in the other boroughs of New York City. There have been several rumors of future stores in the Bronx over the years, but no current projects have been spotted.
The state of Tennessee has reportedly won a ticket in Apple’s 2012 retail store lottery, with the selection of the Cool Springs Galleria for a store south of Nashville. Apple executives have said the company will open about 40 stores during fiscal 2012, with only about 10 lucky locations within the United States. According to the Cool Springs News, tipsters say that existing tenant Abercrombie will vacate space #1585 within a week. Mall manager CBL & Associates Properties Inc. reportedly declined to renew Abercrombie’s lease, opting to bring Apple to the mall. By April, construction will begin on installing an Apple store within the 9,316 square-foot space. The store, sporting an 85-foot wide storefront, could open by September. The mall sits alongside Interstate 65, and within an upscale region at the top end of Apple’s usual average household income demographic—over $114,000. Update: The Cool Springs News has said Apple will also take over the 4,524 square-foot Brooks Brothers space, for a total of 13,840 square-foot, a truly enormous store for a shopping mall location. map/mall plan
Job listings and tipsters have updated information about two Apple store in Italy that will open later this year. According to the Ispazio.net Web site, the stores will appear in Torino alongside upscale retailers on Via Roma, and in Rome at the Porta di Roma shopping center. First, an on-going surveillance of Apple’s job listings has revealed a new store location in Torino that has been rumored for two years. Store watchers say the likely location is in the former Mondadori bookstore at Via Roma 80, an impressive arcade in the midst of many other international retailers. Second, a black construction barricade has appeared on the ground floor of the Porta di Roma shopping center north of city center in Rome. Job listings for the store appeared last November. It would be the second Apple store for each city. The Torino store could open in August, while the Rome store could open by May. mall plan
Almost two years after the site of a future Apple store in Basel (Switzerland) was spotted by local bloggers, blueprints have now been discovered that confirm the two-level store. The plans not only show a storefront and building configuration that is typically Apple, they also show the placement of tables and other furniture that is identical to Apple stores. As reported by MacPrime.ch, Apple’s architect has been revising its original plans over the past year in accordance with city regulations. Originally, Apple proposed a 30-foot tall glass curtain wall for the storefront, spanning the ground floor and mezzanine level. However, the latest proposal submitted last October includes demolishing the current building at Freie Strasse 47 and building a single-level glass façade, MacPrime says. The upper levels would be behind standard windows. The store will have a 48-foot wide storefront, and span about 7,500 square-feet of retail space, and another 2,800 square-feet of offices and stock in the basement. A glass staircase connects the two levels at the rear of the space, the plans show. The project will cost about $6.3 million could be completed in early 2013.
One of the most unusual and amazing architectural designs for an Apple store will reportedly appear in Aix en Provence (France), featuring a nearly all-glass structure enabled by new technology developed by Apple’s glass suppliers. According to AixEnProvence.fr magazine, the current tired-looking tourism office on the south side of Place du General de Gaulle will be demolished and the Apple store will be constructed at the site. A rendering posted by the magazine shows a one-level structure set back on a broad stone plaza, with a tan-colored rear wall, and all other encompassing walls made of glass. A second rendering shows the store is an extension of a design roughly based on the Upper West Side (NYC) store. Typically for Apple, the rendering does not show any Apple-like features and there are no visible Apple logos. According to the magazine, the city required Apple to build to new earthquake standards, and harmonize with the surrounding picturesque streets. The city is in the south of France, and is favored by good weather and thousands of tourists each year. The area to the west of the future store has been recently reconstructed with many upscale shops from international retailers. According to the magazine the store could open by late 2012 or early 2013. rendering
Just one month after Apple opened its first store in Valencia (Spain), a nearby authorized Apple reseller has laid off its staff and closed its doors, a victim of competition from the Apple store. Illa Digital is just four blocks from the Calle Colón Apple store, and opened four years ago as the city’s first Apple Premium Reseller, the highest level of certification for a reseller. Illa Digital was the only reseller serving the city center when the Apple store opened last December 3rd. According to ValenciaPlaza.com,, the store’s owner noticed revenue began to decline after the Apple store opened. Finally this week, the store’s owners laid off all four of the store’s employees and the store went dark. A second reseller, K-Tuin, has a store further north from city center, and for now is still in operation, the Web site notes. From the time the first Apple stores opened in 2001, Apple executives have claimed that business for resellers actually improves. Resellers have generally disputed that claim, but acknowledge that they must substantially adjust their customer focus in order to remain successful after an Apple store arrives in their customer region. map
Once again, China’s Apple retail stores have been overrun by scalpers, who pushed ordinary customers out of the way and egged a store on the first day of iPhone 4s sales. Like previous versions sold in China, the iPhone 4s is unlocked, allowing opportunists to employee line sitters and shill buyers, then resell the iPhones at a premium within China, or ship them to other countries for a profit. At least 1,000 people were in line overnight at the Sanlitun (Beijing) on Friday in 16° temperatures, with the scalpers identifiable by their bright red baseball caps. According to MicGadget, the scalpers were being paid $16 and provided a free breakfast to line-sit overnight. By daybreak the waiting line overwhelmed private security guards, and city police officers soon arrived to manage the crowd. Apple’s corporate security team has extensive experience in handling large waiting lines for store openings and product debuts. However, those lines are usually not interested in earning a profit, and are completely cooperative. Update: At mid-day Friday Apple announced the Beijing and Shanghai stores will not sell the iPhone 4s “for the time being” to ensure the safety of its store visitors. The iPhone will only be available from the on-line store, China Telecom or authorized resellers, the company said. read more
In the midst of looking for a new job, planning a wedding and moving to Scotland, the last thing Taryn B. needed just before Christmas was the hijacking of her Gmail account and a series of fraudulent emails sent to friends and relatives asking for money. It not only happened to the New York state resident, but Taryn claims her troubles were caused by an Apple retail store Specialist who refused to let her sign out of her Gmail account after an iPad purchase. According to Taryn, the Specialist may have skimmed personal information from her account and sent the fraudulent emails herself, or may have sold the information to others. Those emails claimed Taryn and her boyfriend had been mugged in Spain, and asked for money to pay medical bills and buy airline tickets back home. In a telephone interview with IFO, Taryn says other employees in the store dismissed her continued efforts to gain access to the laptop and log out. She also received no help from Apple customer service representatives who answered the company’s main support telephone numbers. In fact, the reps declined to take any information from her that might lead to an investigation of the the crime. If Taryn’s serious allegations are true, any involved Apple employees would be in violation of federal laws pertaining to unauthorized computer access, a crime that could result in a one-year prison sentence upon conviction. details
