Happy 7th Birthday, Apple Retail Stores!

The Apple Retail Store turns seven-years-old today!

The first two Apple Stores opened in Tysons Corner, Virginia and Glendale, California on May 19, 2001. Last Thursday, May 15th, Apple opened their largest Apple Retail Store in the US: Apple Store, Boylston Street in Boston.

Currently, Apple has deployed 210 stores, including 182 in 37 US states, 15 in the UK, seven in Japan, and four in Canada with plans for 40 or so more stores by the end of 2008.

Reuters reports, “In its financial quarter to March 29, Apple’s store sales jumped 74 percent, to nearly $1.5 billion. Average revenue per store in the quarter reached $7.1 million, up 48 percent from a year earlier. Meanwhile, quarterly operating profit at the stores more than doubled, to $334 million.”

MacDailyNews Note: Apple’s retail stores generate sales at the U.S.-leading rate of $4,032 per square foot a year (for comparison, Saks generates sales of $362 per square foot per year; Neiman Marcus, $611; Best Buy, $930; Tiffany & Co, $2,666), according to a report last year by Sanford C. Bernstein analysts (based on an average of Apple’s then 174-store retail network). In 2004, Apple reached $1 billion in annual sales faster than any retailer in history; last year, sales reached $1 billion a quarter.

“Ron Johnson, Apple’s head of retailing, said Wednesday that an international retail presence would be an important driver of future sales,” Reuters reports. “‘Today, Apple is about 50 percent international revenue and about 50 percent in the U.S.,’ he said. ‘We increasingly want to get our retail presence out in the other countries.'”

Full article here.

More information about Apple’s rapidly-growing fleet of retail stores, including links to maps, calendars of events, and much more, here.

I give [Apple] two years before they’re turning out the lights on a very painful and expensive mistake.David Goldstein, Channel Marketing Corp. President, May 21, 2001

21 Comments

  1. Fascinating reading the article from 2001. I well remember the nay-sayers back in those days, and then see the line-ups for each store opening.

    Man I like seeing an under-dog finally succeed. Especially when I switched from PC to Mac back in 1994.

  2. More of Goldstein’s wisdom from the NY Times (By Jennifer Lee, Published: July 12, 2001):

    “No computer manufacturer has successfully branched into retail stores, Mr. Goldstein said. ”It’s completely flawed,” he said of Apple’s venture. ”They’ll shut it down and write off the huge losses in two years.'”

    And another gem from BW Online (By Cliff Edwards, May 21, 2001):

    “Rather than unveil a Velveeta Mac, Jobs thinks he can do a better job than experienced retailers at moving the beluga. Problem is, the numbers don’t add up. Given the decision to set up shop in high-rent districts in Manhattan, Boston, Chicago, and Jobs’s hometown of Palo Alto, Calif., the leases for Apple’s stores could cost $1.2 million a year each, says David A. Goldstein, president of researcher Channel Marketing Corp. Since PC retailing gross margins are normally 10% or less, Apple would have to sell $12 million a year per store to pay for the space. Gateway does about $8 million annually at each of its Country Stores. Then there’s the cost of construction, hiring experienced staff. ‘I give them two years before they’re turning out the lights on a very painful and expensive mistake,’ says Goldstein.”

  3. “3. Willow Bend – Plano, TX – (Aug. 3) – indoor mall. In mid-2006 the theater was removed, and the Genius Bar was moved to take its place and upgraded to five positions.”

    (ifoapplestore.com)

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