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March 8, 2007

stores

Apple retail pays off, big time

Posted Mar. 8, ’07, 9:24 AM PT by Dan Moren
Category | Apple » Stores

Steve Jobs and Ron JohnsonFortune’s got a fantastic article up on why Apple is America’s top retailer. Among other things: an amazingly high sales-to-square-foot ratio of $4,032. By comparison, jeweler’s Tiffany & Co. makes $2,666/sq. ft. and the top electronics retailer is Best Buy, who rakes in a mere $930/sq. ft. Holy cow.

Jobs recounts the experience of developing the stores. They hired Target executive Ron Johnson to head up retail sales and convinced then CEO of Gap, Mickey Drexler (now CEO of J. Crew) to join Apple’s Board of Directors. They hired a Japanese supplier to blast the stainless steel with small beads in order to achieve a warmer look. Johnson came up with the idea of the Genius Bar after quizzing people about their best customer support experiences and finding that the majority referred to hotel concierges.

But the most telling comments come, of course, from Steve himself:

“I started to get scared,” says Jobs…describing what he saw circa 2000. The company was increasingly dependent on mega-retailers - companies that had little incentive, never mind training, to position Apple’s products as anything unique. “It was like, ‘We have to do something, or we’re going to be a victim of the plate tectonics. And we have to think different about this. We have to innovate here.’”
Which is to say, if you want something sold right, sell it yourself. Dell is now undertaking a retail experiment, but given that their success has long rested on their identity as a bargain bin company focused on the bottom line, I’d suggest they’ll have a hard time luring people into an Apple-like retail experience.

As for Apple?

“I can’t even remember Apple without the stores,” says Jobs.
Me neither, Steve. Me neither.


4 Comments

Tony Di Giacomo said:

When my girfriend bought her first Mac (a beige G3 tower) the only choice we had was Comp USA. They had an "Apple" guy there and we really had a good expierence. Later we found out that there was an Authorized Apple retailer in the city (Orlando). I went there to look at the new blue and white G3s but was extremely put off by the snotty atitude of the employees. But the first time I went into an Apple Store I was blown away by the service and the actual design of the store. When I finally breakdown and buy a new laptop I'll be driving (80 miles) to my nearest Apple Store.

March 8, 2007 11:19 AM
Al said:

I live near Spokane, WA. Seems like the nearest Apple store is in Seattle. There are none in Idaho. For me, Apple Stores do not exist.

March 8, 2007 11:43 AM
Adam said:

I have 3 apple stores with in 10 minutes of me.

But I live in Los Angeles.

Was the apple store ever called "Pro-Creation".

I seem to remember that sign on the apple stores.

March 8, 2007 3:31 PM
Jorge said:

Given the quality of the preparation prior to the opening of the stores [which the commentators probably were unaware of] somehow I don't believe Apple was going for the half-hearted attempt. In contrast, Dell is now also trying to go the bricks and mortar way. I doubt they did their homework on the level that Apple did.

You see the same level of care for feel and quality in their products, hard- and software [and yes, I do acknowledge that it's not going to be perfect all the time]. The Apple experience of today is the absolute best I have had in 14 years of driving a Mac. I cannot wait for Leopard to arrive and to get my grubby mits on a brandspanking new Mac this year.

Not everything they do is a spectacular success, but it's certainly not for lack of trying.

I heart the Mac something fierce!

March 20, 2007 4:48 AM

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