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Thursday, May 18, 2021

I had always found it odd that New York City, with its wealth of professional creatives, was home to only one Apple Store, in SoHo.

No more: Apple’s second retail outlet in the Big Apple will be of the ritzy variety, located on Fifth Avenue. It’s housed in a stunning architectural site, and will be open 24/7/365, to boot.

The location is not too far out of the way of my usual morning walk to work. If the weather’s not too crappy tomorrow (it’s supposed to be thunderstorming), I’ll have to swing by for the big grand opening. Maybe I’ll even buy an accessory for my iPod.

While there, I can marvel at how this latest Mac-stand represents the success of Apple’s grand retail strategy, blending distinctive branding with premium revenue generation.

Analysts predict the latest store will be a magnet. Others already draw more than 10,000 visitors a week, on average. Altogether, Apple’s stores pulled in $2.35 billion in sales in fiscal 2005, making it one of the fastest growing retailers in the world, according to Retail Forward, an Ohio-based consulting and market research firm.

The stores’ growth rate in revenue per store — an increase of 44% from 2004 to 2005 — eclipses industry norms. By comparison, major retailers like Target, Wal-Mart, and Best Buy saw growth rates of 3% to 6% in 2005.

Apple’s stores also reap more revenue per square foot than others: Its annual sales of $2,489 for every square foot of space is more than eight times that of Target and 2.5 times that of Best Buy, according to Forrester Research Inc.

The stores, along with innovative products like the iPod, helped Cupertino, Calif.-based Apple reach a record of nearly $14 billion in revenue last year.

“What the stores have done is really build the Apple brand,” said Charlie Wolf, an analyst at Needham & Co., an investment banking and asset management firm. “It’s so consistent with what Apple is that it has really added value to the entire enterprise.”

As usual, Apple shows off a core stylistic sensibility to which the rest of the computer industry is practically allergic. And it’s paying off handsomely — go figure.

by Costa Tsiokos, Thu 05/18/2006 11:16:56 PM
Category: Tech, Business, New Yorkin' | Permalink |

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  1. I like the looks of this shop; when I make it to New York, it’ll be a tourist destination for me. Also, the new MacBook is very tempting, and I need a new laptop anyway….

    Comment by Thud — 05/19/2006 @ 09:54:28 AM

  2. It caused a ruckus on opening night; I walked by, saw the huge line and media crews snaking around the block, and passed. (I might have stayed, but the weather was turning foul.)

    I should note that, as far as the build-your-own-crate computer geekery cognoscenti are concerned, glitzy Apple and Fifth Avenue are a match made in heaven/hell. So from that perspective, this store in New York’s overpriced shopping district was inevitable.

    Comment by CT — 05/23/2006 @ 10:28:40 AM

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