How Apple Retail Stores beat Best Buy, Neiman Marcus, and Tiffany

“Apple Computer has shown people will gladly part with money at its candy stores for geeks,” Scott Martin reports for Red Herring.

“But here’s a little-known fact: Apple’s chic stores don’t just sell more per square foot than even Best Buy, they beat some of the best in the luxury retail world silly, according to a report released Tuesday by Bernstein Research analyst Toni Sacconaghi,” Martin reports.

“Apple’s stores have hauled in annual sales per square foot of $4,032, compared with Best Buy’s $930, Neiman Marcus’ $611, and luxury store Tiffany & Co.’s $2,666, according to Bernstein,” Martin reports. “It’s a wild contrast to the failure of Apple rivals such as Gateway to break into the retail market.”

“Mr. Sacconaghi said that Apple’s retail stores have played a significant part in Apple’s success over the past five years,” Martin reports. “The analyst said Apple retail stores also had an influence on brand awareness. That brand awareness is equivalent to $60 million spent on advertising, he noted. Apple has 170 retail locations in four countries. The Mac maker has about 150 U.S. locations.”

Full article here.

45 Comments

  1. Apple’s retail stores are absoulutely responsible for better sales of Apple products. The exposure in the Malls is definately been good for Apple. The way they do things in the store also helps. All the systems fully loaded with software that you see on the shelves and networked to even access the internet. How many Fry’s stores have working displays that you can actually start and stop programs on. Most of theres don’t work at all or they lock the systems out with stupid passwords making it useless to have a live display. Trained staff that know the products helps to sell your products too. Best Buy doesn’t have this either.

  2. Big freakin’ deal. Wait until Microsoft opens their boutiques. Microsoft’s shops will cater to sophisticated, intelligent consumers who are woefully underserved by those dumps Apple calls stores.

    Best of all shoppers can get their hands on the magnificent Zune or even try Windows Vista in an upscale environment. Windows users are about sophistication, quality and elegance. Cost is almost never an issue. You hear that Apple lemmings? Try looking past the price tag and maybe you’ll discover some real innovation: Zune and Vista!

    You Apple lemmings can have your crappy stores filled with second-rate, “me-too” garbage. Windows users demand better. They wouldn’t be caught dead at an Apple Store.

    Your potential. Our passion.

  3. Good to see the point made that the stores expenses, or much of them at least, can be considered part of the advertising budget. Traditional advertising is damned expensive and there are better ways to achieve the same result provided that the product is decent. Of course most mass market companies take the opposite approach, cut the cost of the product and spend the difference on advertising. This is one of the factors that has caught up on Dell, they only sell through advertising.

  4. Apple’s stores are great for brand recognition. They are a great way to leverage Apple superior marketing skills. And the fact that the stores are doing so well is a testament to the popularity of the iPod, which has led to more recognition for the superior Mac OS.

    However, these stores are not a great accomplishment on doing retail “right.” A lot of the computers in the store consistently don’t work and before the random shutdown syndrome problem was solved on the MacBook half the MacBooks in my local Apple Store were constantly shutting off. The tabletops are filthy, dusty and in desperate need of cleaning. The customer service at the store is very sub-par, not to mention the Mac Genius’ being very sarcastic and condescending. The Apple Store is no different from any other retail store as far as customer service and presentation is concerned.

  5. Everywhere you look, Apple is excelling.

    Even those ill-informed reports that iTunes Store sales were taking a dip were not just wrong, but the exact opposite of the truth.

    e.g. In the Amazon best-seller charts for ALL electronic products, the $25 iTunes Music card has either been the top-seller or, as it is now, second from top – behind the 2 GB Nano silver – for the last few days!

    That’s incredible!

    Apple’s going to have a bumper Christmas!

  6. Zune Tang

    I see Bill et al, have you under their spell. I guess Steve is not the only one with “reality distortion field”

    Best o luck with your Vista, and your viruses, and your whole wintel world.

    It might be nice for you to disclose just how much experience you have with the Mac, and specifically Mac OSX, to lead you to your conclusions. I would gather from your comments, not a lot.

    si le gere, se la vie

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