With Silicon Valley companies facing more scrutiny from activists about their employment diversity, Apple has released figures that show the company’s employees are 70 percent male, but also that the retail stores might be providing better opportunities for women and minorities than the rest of the company. A dynamic photo of employees at the Palo Alto 2 (N. Calif.) grand opening tops the company’s diversity Web page that was published today, along with a photo of a Covent Garden (London) employee and a Tim Cook story about an inspirational employee at the West 14th Street (NYC) store. Tech firms have become a common target of activists who criticize their low representation of women and minorities, especially in executive positions. In its report, Apple doesn’t break out the retail store diversity figures directly. Instead, it provides overall race and gender figures, and for the categories of Leadership, Tech and Non-Tech. The latter category seems to include the hourly retail store employees, and it has a higher percentage of women and Blacks than the other categories, and double the percentage of Hispanic employees. Retail management employees are probably included in the Leadership figures. read more
The advantage of having Apple as a retail store tenant has paid off enormously for the international conglomerate which just sold the Third Street Promenade (S. Calif.) store property for $100 million, a per-square-foot record for commercial real estate in the west Los Angeles region. As reported by L.A. Commercial Real Estate Advantage, last month Jordache Enterprises Inc. sold the property to Bridgton Realty, a New York state-based real estate business. Just two years earlier Jordache had purchased the land and then-Borders Books building along a pedestrian mall for $60 million, considered a premium price at the time. Two years before that, the previous owners paid just $26 million for the building. A real estate executive explained the high valuation of the store property, saying, “The sale says more about Apple than it does about the promenade. I doubt if there was the same size space next door for sale it would get close to that kind of price.” Apple prefers to demolish and build its own high-profile stores, and to then lease them from real estate investors. Apple’s solid financial position and property maintenance commitments make it a very attractive tenant for investment companies. Other store properties have been sold over the years, including Lincoln Park (Chicago) for $10 million, the current San Francisco store for $50 million, and Boylston Street (Boston) for $27.5 million.
After depending upon the natural enthusiasm of its devoted retail store fans for 13 years, Apple has hired a former Nike executive to head a six-person digital marketing team that will build communities, manage email marketing and spotlight the stores’ event and program content. The new hire dovetails with rumors that Apple will soon market wearable technology, and with a new openness demonstrated by CEO Tim Cook during last June’s Worldwide Developer Conference. According to various sources, Musa Tariq assumed the position of Digital Marketing Director for the retail stores this week, and will report to Angela Ahrendts, Sr. VP retail/on-line stores. Tariq previously worked at Nike in a similar role and was credited with bringing all of the company’s digital marketing in-house. Before that he worked with Ahrendts at Burberry and successfully helped develop that company’s first digital marketing initiatives. From the beginning, Apple has been historically and notoriously detached from the world of social media. Company employees are anonymous, and prohibited from creating company-related Facebook, Twitter, Instagram or Web sites. Apple email addresses are considered a confidential company asset, precluding any interaction with customers. Those policies have left the company with no face or personality to create energy, attention or buzz using social media. More to the point for the retail stores, with no product discounts, celebrity endorsements, contests, big-ticket events or giveaways, Apple retail has little to fuel any social media programs Tariq’s team might devise. more
After two and one-half years, nearly 450 court filings and thousands of pages of documents, a San Diego Superior Court judge has ruled that four former Apple retail store employees will be allowed to represent thousands of other hourly company employees in California in a lawsuit over untaken breaks, delayed final paychecks and inaccurate wage statements. The ruling on July 15th by Judge Ronald S. Prager means the plaintiffs and Apple will now begin preparing for the heart of the issues, and that the lawsuit’s eventual disposition will apply to 18,000 Apple employees in retail and other hourly positions within the state. In scores of declarations and depositions filed with the court, the plaintiffs claim that Apple’s policies and procedures for providing breaks were deficient from 2007 to 2012, while Apple has portrayed that breaks were integral to the company’s staffing procedures and have become part of the company’s culture. In over 3,700 pages of court documents reviewed by IFO, both sides are fighting hard over unpaid wages, damages, penalties and attorneys fees that could potentially cost Apple over $60 million. details
Three months after taking the helm of Apple’s on-line and retail stores, Sr. VP Angela Ahrendts toured the New York City stores this week, and sent an email to her employees answering the most common questions she’s heard during her first contacts. “What an amazing 90 days it has been!” Ahrendts said in the email. “I sincerely am honored to be here with you on this fantastic journey.” The store visits are a continuation of her familiarization tour that began earlier this year at San Francisco area store. Ahrendts was spotted today walking the Grand Central (NYC) store with a group of store and headquarters employees, according to a 9to5mac.com story. In her email Ahrendts gave up no clues about the retail stores’ future direction. Instead, she talked about employees being ambassadors of the company, how the on-line and retail groups might learn from one another, and what has touched and changed her so far—”The brilliant balance between the creative and the commercial that the company has maintained as it has grown so dramatically,” she wrote. Ahrendts did note that 80 percent of the time, “Our customer journey begins online and we must evolve to ensure we support this preference.” Lastly, Ahrendts said she will celebrate her 20th wedding anniversary next month, and added that her husband, three teen children, two dogs and two cats will take up residence in San Francisco “soon.”
The U.S. Secret Service has arrested a Florida man for federal wire fraud related to $309,000 in credit card transactions at Apple retail stores that exploited a procedural vulnerability and the willingness of employees to complete a sale. According to the criminal complaint, Sharron L. Parrish Jr., 24, also attempted to charge another $51,000 on his Chase and SunTrust credit cards, but the transactions were either declined or not completed. Parrish was arrested in Tampa on July 17th and agreed to forego bail until his trial. He is being held at the Pinellas County jail, and is represented by a federal public defender. The Secret Service says that during 2012–2013 Parrish traveled to 16 states making fraudulent credit card purchases at rental car agencies, hotels and Apple stores. The complaint that led to his arrest was based on crimes he allegedly committed or attempted at the Brandon (Fla.), Boca Raton, Millenia and Wellington Green Apple stores, involving transactions up to $7,400 each. read more…
For the first time in recent history, Apple’s announcement of its quarterly financial results did not include details about the retail stores, and a one-hour conference call made absolutely no mention of the chain at all. It also appears the company will no longer report the number of store visitors–the figure was missing from the financial filing for the second quarter in a row. Significantly, Apple said it will open just 20 new stores during fiscal 2014, the lowest number since 2002, the second year of the chain. Two-thirds of those stores will be outside the United States. During the usual one-hour conference call with financial analysts yesterday, chief financial officer Luca Maestri didn’t spend the usual 30 seconds providing details about the stores, including profit, number of visitors, number of stores opened during the quarter, and average revenue per store. Financial analysts also ignored the stores during the conference call, and focused their questions on the details of Q3 and the upcoming quarter. It wasn’t clear why the usual conference call sequence was changed, but the retail store time seems to have been spent on a two-minute summary of the quarter by CEO Tim Cook at the beginning of the conference call. details
In the on-going attempt to simplify and speed up the process of making retail store training reservations, Apple has reconfigured how Web visitors interact with the “Learn” Web page, including an interactive map of the stores and revised session descriptions. The changes make the process more logical and integrates workshops, Youth Programs and One to One training more fully into the Concierge reservation system. The previous Web page required visitors to read through a description of the various sessions titled “Discover Your Mac/iPhone/iPad” and “OSX Mavericks.” A visitor then clicked on the appropriate “Make a reservation” link to begin the sign-up process. The new Web page has visitors enter their location first, and then a map appears of nearby Apple retail stores. A pop-up window shows the store’s details, with a link to view the available workshops. That next page displays sessions, which are more task-based, including “Design Beautiful Presentations” and “Personalize Your iPhone and iPad.” After selecting a session, the typical display of dates and times is displayed for selection.
A huge new shopping mall is under construction in a suburb of Lucerne (Switzerland), and if renderings of the future mall are correct, it will host an Apple retail store. The Mall of Switzerland will span 785,000 square-feet in the small town of Ebikon when it opens in 2017, including 120 shops, a cinema, hotel, apartments and public areas. Earlier this year several renderings were posted on-line, and one showed a hallway lined with retail stores. One of those stores was outfitted with typical Apple wood product display tables, back-lit wall graphics and stainless steel structural columns. Just inside the entrance, a back-lit Apple logo is suspended from the ceiling. An odd design mistake also showed an Apple logo and the word “Apple” outside the store, set in the metal above the entrance. Strangely, both the logo and the letters “p” are reversed, apparently to disguise the brand. Although the rendering showed the store on the lower level, no other details are known about the store—or if it will actually appear when the mall opens. Architects frequently use existing retailer names, design elements and logos in their renderings to provide more realism, but not to indicate actual tenants of the mall. However, in this case mall management seems to confirm the future Apple store by responding to inquiries with, “We cannot comment,” instead of denying Apple’s future tenancy. renderings
Nearly two years after Apple’s real estate scouts were spotted walking the hallways of the Lakeside Joondalup (Australia) shopping mall, sources say Apple has finally signed a lease there and has started to recruit new employees. The store would be the third along the western coast of the country, an outpost of Apple stores about 1,300 miles away from the next-nearest stores. The timing of the new store is understanable—the mall is undergoing a renovation and expansion that will make it the largest shopping center in Western Australia. The work will free up existing spaces and create new ones where Apple can find the perfect 5,000 square-foot location. The city of Joondalup is about 16 miles north of the existing Perth City Apple store, and within the north-south retail corridor established as part of Perth’s master plan back in the 1960s. No specific space within the mall has been reported, but a lease plan shows there are several potential spots. Based on hiring schedules, the store could open in early 2015.
In a complicated legal ruling issued today, a European Union appeals court says Apple can receive a trademark on its retail store design, because the architecture is capable of distinguishing Apple’s services from those of other businesses. The decision by the Court of Justice of the European Union overturned a ruling by the German patent court, which had said the design was, “an essential aspect of that undertaking’s business and that consumers would not see it as an indication of the commercial origin of the goods.” Apple applied for a U.S. trademark on its retail store design in 2010. The trademark was granted in January 2013, and the company then applied for the same trademark in Germany in September 2013. When the German patent court turned down the application, Apple appealed. In its ruling, the Court of Justice said the trademark hinged on three issues: the trademark must constitute a sign, be capable of graphic representation, and be capable of distinguishing the ‘goods’ or ‘services’ of one undertaking from those of other undertakings. The issues were made more difficult because of the particular wording of EU law, and because Apple’s application drawing was rather primitive. However, the appeals court ruled the design did met all three criteria of EU trademark law, and approved granting trademark status. Download the court’s ruling (pdf) and read an analysis of the trademark issues.
Apple has issued its latest environmental status report, boasting that all 21 Australia retail stores are now using renewable sources of electricity, and that more than 140 stores in the United States are similarly powered. The company also released electricity consumption figures for the retail stores, suggesting that it costs at least $33 million a year to keep them powered up. The report (pdf) builds on figures released last April that detailed the company’s progress in moving away from electricity generated by coal, gas and other non-renewable sources, and moving to solar, wind and hydro sources. This time, Apple explained that converting the retail stores to renewable energy is “no easy feat, because in many cases a store’s electric meter is in a landlord’s name, not Apple’s.” The company noted that, “many states and countries don’t offer the ability to directly purchase renewable energy.” Even so, there has been progress, “by either purchasing from third-party renewable energy providers or participating in utility green tariff programs that meet our rigorous standards.” details
During a recent presentation at his alma mater, Apple’s first retail chief explained that the stores were originally conceived as places where communities would form, and that only one of every 100 store visitors actually makes a product purchase. Former Sr. VP Retail Ron Johnson told a Stanford University audience in May that store high-speed Internet connections—nearly unheard of at the time—were intended to attract visitors, allowing them to check their email or surf the Web. Johnson spoke as part of Stanford’s Graduate School of Business “From the Top” series that spotlights company executives. Johnson was an undergraduate at Stanford, and also attended Harvard Business School (HBS). Johnson recalled his close relationship with Steve Jobs, and the main lesson he learned from him—‟You have to be willing to start again.” He recounted the previously-told story (but in more detail) of how the original Apple store design was re-done at almost the last minute in 2001, because Jobs’ trusted Johnson’s evaluation that it didn’t match up with the company’s “digital hub” philosophy. video
The visuals teams at the Apple retail stores are installing new back-lit wall graphics to promote the capabilities of the iPad and iPhone, but the graphics have also changed the mood of the stores with their photographic style. Previous wall graphics were stylized close-ups of products with lots of bright colors and white space that spilled over into the stores. The new graphics were photographed like magazine ads, showing the iPad/iPhone being used in actual situations, complete with their surrounding people and places. Their colors, tone and brightness is much richer and darker than the previous graphics, a noticeable difference that’s been the subject of Tweets and other on-line postings by store employees and visitors. The photos are partially based on the latest series of videos that promote the iPad and its real-world capabilities, including videos that profile music composer Esa-Pekka Salonen and world traveler Chérie King. photos
A job listing for a future Apple retail store in Marlborough (Mass.) was posted 10 days ago, but only now has a tipster pointed out the exact location, the Solomon Pond Mall. The Simon-operated mall is adjacent to I-290 about 30 miles west of Boston, a site the company claims is the second-largest metro trade area in the state. The mall’s leasing plan was updated five days ago, and shows Apple occupying a T-shaped space covering 7,400 square-feet, to the right of the Clark’s store on the lower level. The future store will expand coverage west of metro Boston, and will be the 11th store in the state. Based on hiring schedules, the store could open by year’s end. mall plan