Outlook Good for 2009 Store Openings

December 29, 2008

Despite the economic crisis, information from tipsters and other sources indicate no slowdown in Apple store grand openings for the first half of 2009. According to an IFO analysis, at least 11 stores could open between January and June, indicating that 36 stores might open for the entire year, a figure in line with 2005-2007 activity. Historically, 30 percent of store openings have occurred in the first six months of the year, allowing a forecast for the remainder of the calendar year from those figures. In this case, there are at least three stores that were planned for a 2008 opening, but which encountered delays that have pushed the openings to 2009. At least three additional stores have been planned for other countries that will likely open during the first six months of 2009. Another six stores could open during the first half of 2009, depending upon construction progress. The outlook beyond June 2009 is less certain, although indications are that at least 15 stores are in the latter stages of planning that will lead to an eventual opening.

Several of Apple’s current store territories would be capable of profitably absorbing another store, at least because of the service and training component that the stores provide. Several stores, including the future Carousel de Louvre store in Paris (France), are considered high-profile stores whose purpose is not entirely sales. And there are several store projects, such as State Street (Santa Barbara) and Georgetown (DC),  that are assured because of purchase or lease decisions made many months or years ago.

The reported cut-back in working hours for store employees provides another indication that Apple is making adjustments to its retail operation, which may financially allow the company to continue opening new stores at the same rate as previous years.

Apple locates and sizes its retail stores to insure that it operates profitably. It has never closed an Apple store once it’s been opened, and there is no indication the company will close any during 2009.

The stores opening in the first half of 2009 could be in: Zurich (Switzerland), Brighton and Reading (UK), Greensboro (NC), Little Rock (Ark.), Qianmen Street in Beijing (China), St. Paul (Minn.), Temecula (S. Calif.), Scottsdale (Ariz.), along with Robina and Doncaster (Australia). Stores in Santa Barbara (Calif.), Naperville (Ill.), Chicago (Ill.), Paris (France) and Frisco (Tex.) might open during the first half of the year, depending upon construction progress.

Italy was promised two additional stores by Sr. V-P Ron Johnson earlier in 2008, but there has been no hiring or construction activity since then.

The table below shows the number of stores that have opened each month since the chain debuted in 2001. Most of Apple’s past grand openings–45.8 percent–are focused on the September to November period before the Christmas shopping period.  The company opened a record 47 stores during calendar 2008, a number that Apple is unlikely to match during 2009. Even so, from first-half openings it’s possible to forecast full-year grand opening totals.

The graph below shows that September and November are very busy months for new stores.

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Related posts:

  1. One Number Holds the Key to 2009 Retail
  2. Three Store Openings This Weekend
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  5. Store Openings Nov. 19th

{ 9 comments… read them below or add one }

1 Monocle December 30, 2008 at 0239

Bless you for predicting Brighton! Curiously the official announcement and advertising for jobs at the store a year or two back was followed by an eerie silence that made it seem like the electronic equivalent of the Marie Celeste. It’s re-emergence in 2009 from apparition to actuality would finally mean I could stop trudging the streets looking hungrily at every vacant shop front I come across. In one respect I think the economic downturn could play rather nicely into Apple’s hands. The supposed Churchill Square development was interesting in that there were few units (vacant or otherwise) that would have been big enough, well situated enough or eye-catching enough to suit the Apple brand. But the economic depression is causing a number of businesses to shut up shop and the chance of a prime site becoming available looks increasingly likely. Let’s hope that Apple are in the wings waiting with the necessary cash to make a splash in Brighton…

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2 Neil December 30, 2008 at 0408

Apple is doing a very poor job of distributing its stores in the UK. Those who live north of Liverpool can either choose that store or the one in Glasgow for their shopping. There are many more cities which would provide a buoyant market for Apple’s machines and it is disappointing to see them continuing to expand needlessly in the South and South East.

I don’t really know why I’m complaining, this happens with EVERYTHING (I didn’t get broadband internet until 2003!) but Apple does have the opportunity to get its products to a broad audience by placing a store in Edinburgh or Newcastle. I just wonder why they are not taking that opportunity.

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3 Monocle December 30, 2008 at 0718

I’m sure it’ll happen soon Neil. I used to live in Newcastle so I can certainly vouch for it’s Appleworthiness! I currently have to travel up to London to get to my nearest store but to be totally honest my last iMac purchase a couple of months back was made via Apple’s online establishment. The price is identical and you get the added bonus of a few Airmiles on top. John Lewis is another strong choice as they often free extended warranties. With the economic downturn everyone except Apple themselves is likely to offer continuing discounts on iPods etc Quite what Brighton’s resellers are going to make of it all I don’t know. Well I do but I daren’t say it out loud! Cancom and Solutions are the main presence in the town centre but I can’t see locals visiting there in preference to a swish new Apple store. At the end of the day, a local Apple store is a splendid luxury and a marvelous opportunity for potential switchers to ogle the goods…

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4 Michael Vallance December 31, 2008 at 0633

Maybe Apple based in Cupertino see Europe as one market so stores in the bigger European cities may be a priority. I live in Japan right now and Apple is poorly represented outside Tokyo. In fact Singapore has more Apple presence with franchised stores all over the island. Here in Japan I think Apple (Japan) are simply not trying. Maybe Cupertino see Asia as one market – phew..huge market but China will dwarf all other countries in Asia combined.

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5 Jim Palmer December 31, 2008 at 0724

Still waiting for a SINGLE Apple store in the city of Philadelphia. Why Apple has ignored the second largest city on the east coast of the United States is a mystery to me.

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6 Timesgoingfast January 8, 2009 at 1810

I know it means another London store, but i have to say Im really looking forward to the new Covent Garden branch! Even if it is not meant to open until end of 2009 and maybe even early 2010 the building Apple have leased is beautiful and so historical inside with its huge glazed courtyard!! it will be STUNNING!

I walked past the other day on my way to work and the Rock Garden (a restaurant which has called Bedford Chambers home for the past 30 years) has closed down and moved out. Meaning the building is now very much an empty shell ready for Apple to work its magic!!

The building has been vacant since it was redeveloped 2 nearly 3 years ago, with the acceptation of a few exhibitions, parties, and catwalks in fashion week! Covent Garden has such a vibrant atmosphere Apple are going to fit in well, and so great to see the this building finally being brought back to life!

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7 Eddie Prior January 29, 2009 at 1443

Apple is said to have confirmed a location on Princes Street, Edinburgh. This has been widely reported since the summer of 2008, but they had to wait for the present tenants to come to the end of their lease.
124-125 Princes Street, which was the Virgin Megastore for many years was taken over on a short lease by Zavvi, who have now gone bust.
Last month a somewhat mysterious application was been made for planning permission to Edinburgh City Council, referring to “new signage, minor external alterations, new windows, and extending the retail space”

No retailer’s name, no detail, and no elevation drawings…..

Could this be the location of Apple’s long awaited second store in Scotland?

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8 Abdullah February 6, 2009 at 1120

hello here in afghanistan we need an apple store, really there are hundresds of prospective ipod buyers
even a friend said he could buy an imac
i don’t know why apple aversees such an important location
allah bless you

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9 Ralph Fontcuberta March 24, 2009 at 1459

Posting from the beautiful Baton Rouge Apple Store, still patiently waiting for the Little Rock Apple Store to open in my adoptive home town. C’mon Apple I’ve got money to spend.

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