April 25, 2004

I should reiterate that it’s always challenging for Apple to identify a mall that meets its strict standards (high-end, destination location), and then to find an open space that meets their needs (30-40 feet wide, high-traffic). The most common constraint on new retail stores is simply finding a open space in an existing mall. Many mall tenants have signed long-term leases in these malls, which unintentionally keep newer retailers like Apple from moving in. Apple no doubt has a long list of metro areas where it has decided to open future stores, but is forced to wait for the right place and space. For example, they waited over two years to obtain the San Francisco store location, and have waited over a year to get into the Providence Place (RI) mall.

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