Apple Stores Demonstrate That Retail Still Lives

WheezyJoe writes "Maybe OS X Leopard has its problems, but the New York Times seems to think Apple has designed the ideal techie retail store. A policy that encourages lingering, with dozens of fully functioning computers, iPods and iPhones for visitors to try, even for hours on end (one patron wrote a manuscript entirely at the store) has 'given some stores, especially those in urban neighborhoods, the feel of a community center ... Meanwhile, the Sony flagship store on West 56th Street, a few blocks from Apple's Fifth Avenue store, has the hush of a mausoleum. And being inside the long and narrow blue-toned Nokia store on 57th Street feels a bit like being inside an aquarium. The high-end Samsung Experience showroom, its nuevo tech music on full blast one recent morning, was nearly empty.'"

Comments

the samsung "store" doesn't sell anything

[great om]

I swear to god, it is a store that sells nothing. Its, instead, a showcase of the current samsung products available at any store that sells electronics in New York City. I went there once trying to buy a wireless adaptor for my sasmung DVD receiver, and I couldn't buy it there. Why would i waste my time going there?

Frys Electronics

[stoolpigeon]

In my experience Frys is bar none the best techie store I have ever been in. I have never been somewhere with as wide a selection. They carry apple products and a ton of other stuff too. I don't know how big the largest apple store is but you could probably drop it into the average frys.

The people working there, because they want to...

[argent]

I was talking to an employee at the Apple store near here, about the store.

The people working there weren't being particularly helpful, not their fault, there's not much you can do about a bad hard drive but replace it and I had a couple people ahead of me... and I was coming down with a cold, and feeling generally miserable, and really wanted to get my hard drive replaced and get home... but I was also wishing that I was feeling well enough to hang out there longer.

What was clear to me, but not apparently immediately clear to the young man, that the big difference between the people working at the Apple store and the people working at the other geek stores in the area is that they wanted to be working at the Apple store. The fact that they were working for Apple was what made all the difference to them, and that made all the difference to their customers. They wouldn't have been motivated selling Dells.

Now I'm not really a big fan of most of Apple's products... I really wish they'd unbundle so I didn't have to put up with a Mac so I could run OS X. But you can see the feedback going on, between the people who are into the whole Apple schtick, and the people who run the stores, and the style, and everything, and it all works together amazingly well. The reality distortion field lives in that feedback, too, and for an hour or so I was rather enjoying it.

Calling Business Week...

[sg3000]

It's always helpful to look back to see what the naysayers were saying back in the day. Business Week's Cliff Edwards said back in 2001 in an opinion piece titled "Sorry, Steve: Here's Why Apple Stores Won't Work":

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.

At the time, people didn't realize that the iPod was going to be so successful, but clearly the retail store was an important step for Apple. This opinion piece illustrates one of the problems of business experts who opine about a single step in a strategy, without having the vision to see how it fits into the whole. So Apple's gamble seems to have paid off. Here's to Apple sticking to a plan and seeing it through.

Re:Calling Business Week...

[iluvcapra]

I wouldn't be surprised if the Apple stores do lose money.

The article doesn't give profit numbers, but each Apple store averages $4-5K per square foot revenues per year, which is 6x Neiman Marcus, 4x Best Buy and 1.5x of Tiffany's.

Not locked

[JoeCommodore]

Unlike most stores which has to lock their computers, due to the OS being so susceptible, most places that have Macs are open to explore, they probably are on a limited account but it's not the guided tour with safety-rails demos that you see on Windows PCs at most places.

Many I see are playing DVDs or maybe iTunes music. Once in a while Ive seen them with some FPS game. When I have seen Windows Desktops its either running 'just' the desktop, or one that has crashed to the desktop. Most of the times though I just see that fancy Aquarium screen saver.