MacDailyNews Take: Of course, it is and as it should be. The world’s number one retailer increases foot traffic in all areas where they open a store, benefitting adjacent businesses in significant fashion.
“The Metropolitan Transportation Authority gave the iPad maker an unfair edge last year as Apple ruthlessly bid for its prime retail perch overlooking Grand Central Terminal, according to a scathing new report obtained by The Post,” Covert reports. “A fresh audit by state Comptroller Thomas DiNapoli says the MTA last May allowed the California-based tech giant to set a daunting hurdle for rival bidders to clear in a tight, 30-day window — namely, that they be willing to front $5 million in cash. ‘The competitive process followed by MTA… was at a minimum severely slanted toward Apple,’ reads the report, submitted to MTA officials Friday and expected to be made public today.”
“Apple’s chic open-air shop has been mobbed with commuters and tourists since it opened last December, and it is expected to rake in hundreds of millions in revenue annually,” Covert reports. “MTA officials blasted the report, accusing DiNapoli’s office of ‘overt bias against the MTA and Apple… This audit is not fact-based, and, accordingly, their opinion is worthless,. MTA Chairman and CEO Joseph Lhota said in a statement. ‘The MTA’s lease process with Apple was open, transparent and followed both the spirit and letter of the law.’ MTA officials said Apple is paying $1.1 million in rent this year — four times what [the previous tenant] had been paying.”
Read more in the full article here.
MacDailyNews Take: We’re shocked. Shocked that a quasi-governmental public corp. like the MTA has such sound judgement, especially one that is currently mired in $31 billion in debt and suffered from a $900 million gap in its 2011 operating budget. They obviously need to do everything they can to get people onboard their transit systems. Landing as many Apple Stores as possible should be a priority, especially when Apple pays four times the rent than the previous tenant which generated a tiny fraction of Apple Store’s foot traffic.
Apple Retail Stores generate their own rising tide which lifts all boats.
Why authorities waive rents and taxes to land Apple Retail Stores – May 20, 2012
The new Apple store at Grand Central is a sweet deal for MTA bus and subway riders – December 12, 2011
Apple Retail Stores: More than ‘magic’ – June 17, 2011
Secret to success inside Apple’s retail juggernaut – June 15, 2011
Apple Retail Stores challenge department anchor stores – June 10, 2011
Apple’s retail juggernaut is magical and revolutionary in its own right – May 25, 2011
Apple Retail Stores hit 10th anniversary (with video of Steve Jobs’ tour of 1st store) – May 18, 2011
Apple Store: ‘The best damn retail experience in America!’ – December 2, 2010
Apple’s retail stores generate huge sales – December 27, 2007
Piper Jaffray finds ‘gravitational pull’ at Apple Retail Stores – November 26, 2007
Apple thinks different with cash register-less retail stores that bring in billions – November 23, 2007
Apple makes retail seem ridiculously easy – May 29, 2007
How Apple’s Steve Jobs is revolutionizing Manhattan retail – May 08, 2007
Fortune: Apple Inc. is America’s best retailer – March 08, 2007
How Apple Retail Stores beat Best Buy, Neiman Marcus, and Tiffany – December 19, 2006