Inside Apple stores


How does Apple do it - and the re$ult.

It was 2 o’clock in the morning but in the subterranean retailing mecca in Midtown Manhattan, otherwise known as the Apple store, it might as well have been midafternoon.

Even late at night, there are customers on the floor of the Apple store in Midtown Manhattan. Apple now makes about 20 percent of its revenue from its brick-and-mortar stores.

Late one night shortly before Christmas, parents pushed strollers and tourists straight off the plane mingled with nocturnal New Yorkers, clicking through iPod playlists, cruising the Internet on MacBooks, and touch-padding their way around iPhones.

And through the night, cheerful sales staff stayed busy, ringing up customers at the main checkout counter and on hand-held devices in an uninterrupted stream of brick-and-mortar commerce.

The party inside that store and in 203 other Apple stores around the world is one reason the company’s stock is up nearly 135 percent for the year. By contrast, high-flying Google is up about 52 percent, while the tech-dominated Nasdaq index is up 12 percent.

The article moves beyond the catchphrase designed to suck in both fanboyz and Apple haters - “aura enchants the faithful”. That’s worth a small snicker. The important bit is that Apple derives 20% of their income from their retail stores.

Read the article. I think you’ll appreciate that they’ve not only contributed to technology design in an industry overwhelmed with outdated concepts - Apple has significantly added to the body of contemporary retail merchandising.

Apple stores generate sales at the rate of about $4,000 per square foot a year…

As other electronics makers like Dell, Nokia and Sony still struggle to find the right retail formula, Apple seems to have perfected it.

A measurable portion of retail success is founded on recreational shopping. Getting non-geeks into their stores is as important as anything else. The result of that process is Apple leading more consumers into appreciation of what computing technology now offers in access to information and entertainment.

Posted: Fri - December 28, 2007 at 09:29 AM