The Royal Hawaiian Shopping Center in Honolulu (Hi.) is home to a future Apple store, but its selection is a head-scratcher for Mark Wilson, who says the location isn’t frequented by locals, and wonders how many computers tourists would purchase. “Who are the customers going to be,” Wilson asks.
Wilson continues:
Apple retail is going to high visibility in a major tourist-oriented location at the Royal Hawaiian Shopping Center in Waikiki. A major worldwide tourist destination with almost five million visitors a year. The store will be on two floors. It will be street side next to a two-story Bebe and across the walkway from The Cheesecake factory. Will it be a Flagship store or are they using the second floor because the rent is so much less?
The real questions is - Who are the customers going to be? Honolulu residents avoid Waikiki because of traffic and parking. And there is no reason to shop at an Apple store in Waikiki when there is the Ala Moana store a mile and a half Ewa (basically West) and the Kahala mall store two and a half miles Diamond Head (In this case Northeast). And the locals hate this shopping center. What used to be a green area next to the hotel and beach is now a wall of cement.
Maybe half of the visitors to Waikiki will walk by the Royal Hawaiian location but how many would buy anything. iPods can sell to anyone in the world, but will the foreign customers be able to get the right power adapter? Why would anybody buy a desktop computer on vacation. (I would love to have the baggage handlers throw my new iMac under the airplane.) In the rare circumstances that someone would, there is the Ala Moana store near by. Notebooks are practical but do you go on vacation to buy a computer? And again will the foreigners be able to get the right power adapter?
So that leaves iPhones. Again, do you go on vacation to buy a cell phone? Americans can buy them at home. By the time this store is open Canada should have an iPhone carrier and as Apple has always done a lousy job serving the country, this would finally be a way to move some product up North. However there is the Waikiki saying about Canadians. (Before you write replies, this is not my line.) What is the difference between a Canuck and a canoe? Canoes tip. Canadians have long stays to avoid the cold. Traditionally Canadians spend the least amount of money per day of any visitor country. Japanese phones have different features. Australians? They have to pay a luxury tax on expensive items brought back to the country.
What is left? The Genius Bar? No money in that.
There will be the business man that is used to quick trips and doesn’t normally bring his laptop power adapter.” I used all of my power on the flight over. I have to check my e-mail.” Uh - You are on vacation, right?
The majority of the population and potential growth on the island of Oahu is West of the Ala Moana store, but this is Apple’s second store East of Ala Moana. This despite the fact that the state’s second biggest shopping center has space available.
Is this being done strictly for exposure. “Hey when I get home I’ll have to pick up one of those.†Will Apple understand that the low sales are worth this kind of rent? I do admire their commitment.
