The numbers seem overwhelming: an ever-increasing number of visitors to Apple’s retail stores, a larger market share, and millions of computers and iPods sold each year. But do those figures mean that Apple’s retail stores are actually growing more crowded? Not according to figures derived from Apple’s financial reports. According to Apple, the number of visitors has increased from 2.1 million in the third quarter of 2002, to 21.9 million in the same quarter of 2007. But at the same time, the average number of open stores has also increased, from 30 in Q3 2002 to 180 in the same quarter of 2007. Based on those figures, the number of per-store visitors has remained fairly stable lately, within a narrow range of from 112,000 to 126,000 visitors per quarter.
There have been two large spikes in visitor traffic during the past five years, both associated with the holiday season in 2006 and 2007.Prior to Q2 2005, the number of visitors had zig-zagged up and down twice, but then slowly increased over four quarters. Now it appears that Apple’s yearly plan to open 35 to 40 retail stores is keeping up with the cutomers’ demand for the company’s products and, especially important, store services such as One to One, ProCare and the Genius Bar.
Looking at the situation another way, adding more stores doesn’t decrease the average number of visitors to the stores, indicating a continuing supply of people for the next retail stores that open.
[Follow-up: Again, this is all based on average visitor figures, which completely masks the congestion that occurs at the flagship stores and other locations, and leaves fewer visitors at yet other stores. The comments more accurately reflect daily visitor levels.]
The average number of quarterly visitors to an Apple store falls within a narrow range
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May well be true overall, but take a walk – if you can – inside the Stonestown and Downtown SF stores and I’d think you would agree they are crowded.
Anecdotally, my local Apple Store has gotten worse and worse. Sometimes you can’t even get to any product at all because there are so many people shopping. They are right above a Sony store, which never has any customers.
I recently visited Kansas City and had an iPod problem, so I visited the Country Club store. I arrived a half hour before the store was to open and nobody was outside, by the time it opened there were over 30 people waiting to get in. I commented to somebody about how fast the line grew and he said it was actually quite sparse compared to many days.
Again, no overall facts, just anecdotes from my experiences.
If you want an empty Apple Store, try the one at the Burlington Mall in Burlinton, MA . Funny thing is that my wife’s brother tries guaging the business in *all* Apple Stores from this *one* store.
If you want a busy Apple Store, check out the Mall at Chestnut Hill in Newton, MA, where they both grew up. For those who don’t wish to visit MA just to see that Apple Store, check out Chapter 8 in “The Apple Way” .
Well, visited Apple’s Santa Monica (CA) store last week on 3 separate days and it was pretty packed with people, with long queues at the cashiers. Definitely could feel the buzz of excitement and actual sales being done.
Seems like a good idea to buy more Apple stock, since I would predict sales projections to beat its forecast (just my two cents worth–and no I don’t personally owe any Apple stock at present).
Dropped in to checkout Apple’s new San Luis Obispo Store last week and two Los Angeles area stores a few weeks ago. It is obvious that Apple has more traffic than ever. This holiday season is likely be too much for some and the online Apple Store will take the overflow. I wonder how long until you will have to take a number, just to get in?
Imagine, a line in front of an Apple Store, not because it is a brand new opening, but just because it is so popular that store staff will have to hold people outside until shoppers leave the store! I predict you WILL see this happening in malls this December.
Try visiting the Rosedale Center (MN) store on the weekends. It’s shoulder to shoulder crowded, and so loud from people talking you’d think you were in a nightclub. To top that off one Saturday I counted 5 one-to-one lessons being held (with no Studio, so they sit along the walls that have demo computers) and the Genius Bar three deep with the next available appointment 4 -hours- out, and every available salesperson occupied, and the line to the cash registers 8 people long. In a store the size of Rosedale that means people were lined up to buy things and the line stretched nearly halfway through the store.
Last month was worse, it was like that every day of the week. I could hardly hear my trainer when I came to have my lessons. At least now the kids are back in school so the weekdays are a little more civilized. At least until Thanksgiving I guess.
My own recent experience…
Willowbend Mall (Plano TX), Saturday 9-22-2007, 2pm:
packed.
It would be useful to know how Apple’s retail square footage has changed. Are the stores all the same size? No, we know that. So, how has the mix of large and small stores changed over time, that would give us a little more context on whether the stores are more crowded. I mean, if the same number of people per store are shopping, but the average store is smaller, then they’re more crowded, right?
The London UK Apple store was ridiculously crowded when it first opened, since then they’ve opened another few stores that are sort of local enough to take some of the pressure off and significantly increased the sales floor space by at least a third of not doubled it. It’s still busy, you still have to wait for a machine to play with even off peak but the store is much better laid out now than it was, and the glass lift is just fun.
Visited the Tampa (Florida) Apple store at Sunday midday last weekend — I was shocked at how crowded it was. At times you had to actually _wait_ to grab some time with one of the new iMacs or iPhones, which were plentiful. On a SUNDAY in the SOUTH. Warms the heart of this longtime Mac developer.
The much larger Sony Style store on the first floor? Five customers, including myself and my little girl. Some nice TV’s, but I found myself wondering if the new iMac wouldn’t do just as well for a television…
Funny, I just happened to be in the Nashville TN store today (Sunday) and it was packed (50+ people). It seemed to me that the Apple Store has become a destination. Every product area was crowded except one…was that a force field around the classic iPod table?
I work at Apple store XXX, and it is just a zoo. We were all talking about how Apple will definitly set new retail records for THE ENTIRE RETAIL INDUSTRY this holiday season. The daily crowds are already like last years holiday season, it’s unreal.
It’s not even October, and it already feels like working there any day is like running in a marathon.
Ginza, Tokyo today; Japan has no iPhone, no iTouch and no iTunes movie store to use an AppleTV – result? The store is still packed!
As someone who has worked in retail more than 20 years I will warn you all not to confuse crowding with sales. The data released by Apple most likely represent the # of transactions that occur in the store..i.e. register rings. Given the Apple’s stores penchant for drawing gawkers, schmiers and tire kickers the qusntity of customers in the store is likely very high compared to the buyers. The trick in retail is to convert traffic into buyers and too much traffic makes it difficult for th sales staff to ID the buyers and service them. Apple does a great job driving traffic, how good it is at converting triers into buyers is unknown.
I was in North Michigan Avenue saturday night just before closing and the place was still busy, however, there wasn’t a line for the register. I left about 5 minutes before the store actually closed, so maybe there was a rush then, but probably not. Most iMacs were taken but only a few MacBooks and Pros were being used. The iPod side was plenty busy, but again you could still find the occasional open one. The theatre was done for the day so only had one guy sitting there, same with Genius, iPod, and Studio, they were all finishing up with their last appointment.
I’d say they’re still busy and they’re certainly making the money.
-Brian
Has anyone been in Regent Street lately? Its packed with people buying… Let the good times roll
The Tampa store is an outright public health hazard. I could barely breathe much less move around the other day. Had there been a fire, everyone would have died. I’m lucky not to have been trampled. My hands did swell up and turn red though. They need a door person controlling occupancy there at all times year-round, and I told them as such (but as usual they ignored me).
London (Regent Street) was utterly packed when I was there yesterday. I was attempting to buy an iPod touch, but they were sold out and they told me to come back tomorrow (and to come early). The tables with the iPod touches and the new nanos were crowded, too. I think it is pretty obvious that Apple has major hits with both those produces, and there are clearly going to have an absolutely huge Christmas.
As one would imagine, the Apple stores in Manhattan are consistently insanely crowded.
Just as the most significant indicator of retail success is same store sales growth, the same is true of whether stores are crowded. Same store traffic stats comparing different dates is the only true indicator.
The New York City stores are always crowded.
Outside of major cities, I’ve visited many malls in which during the daytime on a weekday you could throw a bowling ball down the mall and no one would be hit. I’m amazed that some of these malls can survive.
Since Apple wants to be so hip, I’m actually surprised they’ve gone with malls instead of finding either stand-alone locations or Main Street in some locales.
The Arden Fair Apple Store in Sacramento, CA is now regularly overcrowded, too. I stopped by mid-afternoon last Saturday and noticed that the entrance was cordoned off. I asked the Apple employee at the door if the store was closed and he motioned to a line across the walkway outside the store, explaining that the store had reached its fire code capacity and customers actually had to wait in line to get inside!
Even with a Roseville, CA store opening soon, the Arden Fair store badly needs to be expanded.
The Honolulu Ala Moana is always crowded. Frequently packed.
The Kahala Mall store is usually not crowded, sometimes slow. So to John, the Roseville store probably will not relieve the crowds at Arden Fair.
Kahala – web.mac.com/marktrek/iWeb/Site%202/Kahala%20Mall.html
I visited Birmingham’s Bullring store on a recent Sunday afternoon. Packed house with all the just-announced iPods on view. Waiting in line to buy a replacement power supply for my PowerBook (yes they do carry items for older Macs) I could not help but notice how many computers were being bought, mostly MacBooks. I asked the sales assistant hopw many they sold in a day. he of course couldn’t tell me the number but paraphrased “lots”!
To Retail Professional above I would say that yes, converting casual visitors to buyers will always be a challenge but first you have to get those visitors inside and Apple does this better than anyone. But more important, many visitors are not casual at all, they have entered with a mission – to buy something!
Went to the valley fair mall in San Jose, CA last friday evening, about an hour before the mall closed.
The Apple store there is undergoing renovations, so it is 1/2 the normal size.
It was so packed that I could barely walk around the kiosks. People of all ages walking out with products ranging from macbooks, macbook pros to a mac pro tower. Lots of sales activity.
The mall in general was pretty busy, but apple’s store had way more traffic than any other store I saw at the mall.
Their biggest problem is probably servicing customers quickly enough.
Phoenix AZ store at Biltmore Fashion Park is always crowded with Buyers – I’ve never seen so many people ready to buy with money in hand.
Luckily, if the Phx store is out of something I need, a 30 mile drive across the Valley of the Sun (metro Phx) to Chandler AZ at the Chandler Fashion Center can be worthwhile, but I always call ahead since they too are busy.
Is Gilbert AZ the next location for a new store, possibly the new San Tan Mall?
Apple is smart to provide online reservation for service at the Genus bar, otherwise, showing up at any AZ store and signing in means a long wait.
Yep, all the stores in all the states I’ve visited are crowded…with lots of buyers.
The San Francisco store display with BOSE noise-canceling ear phones like I already have convinced me to buy my 1st classic iPod… later, back in Phoenix.