Feeds

Apple retail stores most productive in US – by far

Double the revenue per square foot than second-place Tiffany & Co.

Bridging the IT gap between rising business demands and ageing tools

Apple's brick-and-mortar stores rake in over twice the income per square foot as the US second-place earner, luxury retailer Tiffany & Co.

According to a new study by the research firm Retail Sails, Apple's real-world stores earned an average of $6,050 per square foot during the year ending in June. Tiffany pulled in a distant $3,017, and third-place yoga and running-gear purveyor lululemon athletica was far behind at $1,936.

Of course, selling pricey kit makes it easier for Apple to chalk up high sales figures. That said, Tiffany & Co. is not exactly Lidl nor Big Lots, and Retail Sails' top-ranking department store, pseudo-swanky Neiman Marcus, pulled in a relatively meager $508 per square foot.

No matter how you cut it, Apple's retail effort is a cash-gobbling juggernaut, with 390 stores in 13 countries bringing in $18.8bn in Apple's most recent fiscal year – that was 12 per cent of the company's total annual sales. Retail store space totaled 4.1 million square feet for the year, and the average sales revenue per store was $51.5m.

As last month drew to a close, Apple's short-time retail chief John Browett, late of the UK's Dixons chain, was shown the door, reportedly for botching a sales-staff realignment, damaging employee morale and thus possibly endangering customer service. With retail revenues being what they are, he certainly wasn't let go for exhibiting poor money-making skills.

Apple opened its first two retail stores on May 19, 2001 – one in Tysons Corner, Virginia, and a second in Glendale, California. In its infinite wisdom, BusinessWeek greeted the stores' debut with a commentary entitled "Sorry, Steve: Here's Why Apple Stores Won't Work." In that dismissive article, the president of research firm Channel Marketing predicted, "I give them two years before they're turning out the lights on a very painful and expensive mistake."

In a Cnet article reporting the stores' opening, an IDC analyst advised, "Wouldn't it just make more sense to spend $100 million on an advertising campaign that reaches a lot of people rather than opening stores that get a little traffic in select areas and are expensive to maintain over time?"

Mmm ... well ... apparently not. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.