Retail Store Black-Out Zone
Apple states that 90% of the nation's population is within 15 minutes an Apple store (37 to 48 miles), which I assume means "driving time." But there are still considerable areas that have no store nearby, including one large "black-out zone" covering a substantial portion of the southern and western states.
This map is an exaggerated dramatization of the areas that have no Apple store. Three stores will eventually open in this region and somewhat shrink the two zones: Omaha (Neb.), Albuquerque (NM) and Birmingham (Ala.). But as of early September 2006, the black-out zone hasn't changed much in the past year.
Thanks to everyone who provided feedback on the accuracy and clarity of the above map--within minutes of my posting it! From the way it's drawn, it gives only an exaggerated version of where Apple stores are not within easy reach. At the suggestion of several e-mailers, I prepared the map below that shows the entire U.S. in black, and then creates tiny white "zones of availability" for each Apple store. Again, I've located the stores' locations only roughly. But at least this map shows the huge amount of geographic territory that is beyond a 45-minute drive of a store (the circles were sized proportionally). The yellow circles represent the 19 largest metropolitan areas of the United States without an Apple store, although several of these metro areas are destined to have a store within the next 6-12 months.
Update: Is it a coincidence that the seven states with the lowest percentage of household computers and Internet access have no Apple store? The white numbers on the map above indicate the ranking (51 the lowest) among the states and District of Columbia, as reported by the Bureau of the Census in Nov. 2005 [download report, pdf]. In particular, four of the five Gulf Region states have no Apple store. Oklahoma, the eighth lowest ranking state, just opened an Apple store on Sept. 26, 2006. Apple says it bases its location decisions largely on the number of Mac users in a region.
In early Sept. 2006 it was confirmed Apple was in final negotiations to locate at the Summit Mall in Birmingham (Ala.). This store would slightly decrease the black-out zone, although only slightly in the Gulf Coast states and Arkansas.
As you can see from this map, Apple is following a cluster model for locating stores: there are just 49 regions covered by the 126 stores. That means 77 stores are located in a region where one store already exists. Apple expects to open 35-40 new stores in fiscal 2006, leading to speculation on how many of those will be in new territories. First, expect Apple to reduce the workload on key stores within each region. Visitor traffic has increased more than seven times since 2002, creating a traffic jam at the high-profile and lone-location stores. Apple's recent increase in market share has flooded the stores with visitors--the bigger stores like North Michigan Avenue are probably hosting over the 50,000 figure a week. And many of these visitors are heading straight to the Genius Bar, an area that demands quality customer service, which can only be provided if there are short lines and waiting times, knowledgable people behind the counter, and quick turn-around on repairs. Either Apple beefs up staffing in each store to manage customer service and sales, or they create new stores to divide up the flow of traffic.
You can bet that Apple didn't design its stores for a 7x increase in foot traffic. Perhaps they envisioned such an increase. But no company can make the capital investment for such potential increased traffic, especially when you're just entering the retail store business. So it seems likely that stores are feeling the pinch--too many people, too little space.
Thanks to Glenn for providing the following feedback:
"On the premise that California is the 6th largest economy in the world, then the world according to Apple is all about, "What is a market?" The comment that there is a blackout zone is valid, but from Apple marketing, that is what they see it as--something of a hole with nothing much in it (for Apple). So when thinking where Apple will go next, think in terms of an economic unit and what is one, does the border between states matter, and it does not. Apple's boundaries are all about a "VORTEX" that is creating a storm of business within a confined area--and unfortunately Atomic City is not a storm cell. This is not thin and even over the whole of the U.S., but thick and laid on heavy where the cash flow is."
as of
