According to research provided by CoStar, sales per square foot at all but a few public retailers have declined to an average of around $325 in recent years, down from nearly $375 in the early 2000s. There’s little doubt that the online giant Amazon.com, Inc. has been disrupting traditional retailers, however, several companies have managed to grow sales despite the declining trend in brick-and-mortar. Other retail companies watching the trends in the rising costs include Generation Next Franchise Brands, Inc., Tiffany & Co., lululemon Athletica, and Apple Inc..
With sales per square foot viewed as a major component of retail success, according to industry data provided by eMarkter, the #1 retailer in sales per square foot is Apple Inc., which did a staggering $5,546 per square foot. Having launched the first iPhone 10 years ago, it’s speculated that this next milestone iteration of the iconic product could produce Apple’s strongest sales to date.
Leading food service retail with sales of $3,970 per square foot is the Reis & Irvy’s robotic frozen yogurt vending kiosk. Parent company Generation Next Franchise Brands, Inc. has pre-sales of approximately $27,000,000 with mass production and a nationwide rollout into movie cinemas, malls, airports, hospitals and tourist attractions across the US scheduled to begin Q4 2017.
Leading the jewelry retail industry with sales of $2,951 per square foot, Tiffany & Co., through its subsidiaries, designs, manufactures and retails jewelry and other items worldwide. As of January 31, 2016, it operated 125 stores in the Americas, 85 stores in the Asia-Pacific, 55 stores in Japan, 43 stores in Europe, and 5 stores in the United Arab Emirates.
Leading apparel retailers with sales of $1,560 per square foot, was lululemon Athletica, together with its subsidiaries, designs, distributes and retails athletic apparel primarily marketed towards women. As of January 29, 2017, it operated 406 company-operated stores under the lululemon and ivivva brands in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Hong Kong, Singapore, South Korea, Germany, Puerto Rico, and Switzerland.
Source: MarketNewsUpdates.com
MacDailyNews Take: Not too shabby for “a very painful and expensive mistake,” huh? 😉
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, commenting on Apple’s plan to open retail locations, May 21, 2001
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Apple’s retail chief Angela Ahrendts on turning stores into town squares – October 18, 2016