Apple should look to The Loop
A decade ago Apple depended on a few retailers to display and sell their computers. These retailers did a poor job, relegating the Macs to the back corner of the store. Apple decided they needed to open their own retail stores to get their products in front of consumers. May 15, 2001 their first store opened in Tyson’s Corner Center mall in the D.C./Baltimore area. The St. Louis region has two Apple Stores – one at West County Center and the other at the Galleria. Not all stores are located in enclosed malls.
Many cities have the Apple store along retail streets. The San Francisco store above opened on my 37th birthday.
As of November 2009, Apple has opened 282 stores; 221 in 41 US states, 24 in the United Kingdom (20 in England, two in Scotland, one in Northern Ireland and one in Wales), 14 in Canada, 7 in Japan, 6 in Australia, 3 in Switzerland, 2 each in Germany, Italy and France and 1 in China. (Source: Wikipedia)
The stores have been a huge hit.
Apple began building its own outlets in 2001, and they have proved enormously profitable. A record 42.7 million customers visited Apple Stores last quarter, generating $7.6 million in revenue per store, up 15% year over year. All told, Apple Stores brought in $6.6 billion in revenue in fiscal 2009, more than the whole company generated ($5.4 billion) in 2001.
Basement“We have the highest performing retail stores on the planet,” boasts Ron Johnson, the former Target marketing whiz who runs Apple’s retail division. Johnson told the press on Thursday that the average Apple Store generates $4,300 per total square foot (including storage space), the equivalent foot for foot of 5 Best Buys and 15 Target stores.
The “significant” stores (what Apple used to call its flagship stores) do much better. According to a Bloomberg report last summer, Apple’s big glass cube on 59th St., across the street from the old Plaza Hotel, is the highest-grossing retail outlet on Fifth Avenue, bringing in an estimated $35,000 per square foot, nearly double the gross of Tiffany’s sales floor and triple Harry Winston’s. (Source: CNN/Fortune)
With this great success recently Apple announced plans to keep expanding.
November 12, 2009,
Apple said Thursday that it expects to open 40 to 50 new retail locations next year and that it will focus on bigger flagship stores in major cities.
At a media preview of its fourth New York store, this time on the Upper West Side, Ron Johnson, Apple’s senior vice president of retail, said the company sees this location, as well as its glass cube on Fifth Avenue and newly opened store at the Louvre in Paris, as “significant stores.”
Its new stores, both significant and standard, will be larger, to accommodate the width of three product-display tables and bigger Genius Bars.“Our stores are too small,” Mr. Johnson said. “Our biggest challenge at the Genius Bar – we cannot build them big enough.”
More than half of Apple’s 40 to 50 new retail locations in 2010 will be outside the U.S., including the United Kingdom, Canada, Australia, Italy, Switzerland, Germany, France and China, he said.
Apple doesn’t currently have plans to open more stores in Manhattan, Mr. Johnson said, but when asked if there were any plans for neighboring borough Brooklyn, he left it at, “Stay tuned.” (Source: Wall Street Journal)
While the West County location just got revamped the Galleria store is quite small. So this is where the Loop comes into play. I think Apple should build a new location on the Delmar Loop to replace the small Galleria location. The portion East of Skinker is ideal with restored buildings, modern new construction and vacant land a block from a rail transit station. Specifically I’m referring to the site between Big Shark Bicycle and Miss Saigon Vietnamese restaurant (map/aerial). Apple would then be in a new building of their own design on one of the most popular streets in our region.
The site is bigger than they would need so the total project would include more storefronts. There are other vacant sites both East & West of Skinker but I think this one is best. Hopefully Apple’s retail scouts will find this post and check out the Loop.
– Steve Patterson
How about keep the Galleria store AND open a store in the Loop? Last time I went by it, the Galleria Apple store was absolutely overflowing with people. Why close such a successful franchise?
I see a couple of reasons why they would and wouldn't have both. In favor is the fact the Galleria location is in place already. Against, the two sites are within 5 miles of each other and would draw from the same base. The Galleria is a “mini” store concept. It is clearly way too small.
One person I talked to about this yesterday said they want a bigger store but the Galleria doesn't have more space available. He thought they might build across Brentwood when The Boulevard expands to the South.
No way. Not gonna happen. Apple stores are never this close to one another in such a small market – so moving from the Galleria to the Loop would be the only option they consider. Furthermore, they are moving towards a strategy of single, larger stores (think 2 or 3 story, like Michigan Ave in Chicago). STL doesn't have a great location comparable to Michigan Ave which screams to Apple “we've gotta be there”.
But the Loop, as much as I enjoy it, still feels “dirty”, compared to the preppy-ness of Apple's other flagship stores. And Apple isn't about to setup shop in a place that feels “dirty”.
I think you're dead-on with the Boulevard though. Thats exactly the kind of location Apple would love, and it might even help the Boulevard live up to its hype.
Fully agreed, Joe.
I partially agree. The section East of Skinker with new construction already and more when the vacant lots are filled in has a different vibe than the street West of Skinker. Where I agree is The Boulevard may be a better fit for Apple. However, the foot traffic is greater on the Loop.
The Boulevard is LAME and Apple is way too cool for it!
When I bought my new iMac earlier this week, I had the choice between a mall store and a street-level store within 10 miles of where I live in the SF Bay Area. I chose the street store. Easier parking, easier to find, and easier to get the 45lb box back to my car. A street-level store would be a perfect addition to the Loop.
Apple has a street level store on Walnut Street in Pittsburgh's Shadyside neighborhood, so urban locations in similarly-sized cities is not an untested concept.
Same goes for American Apparel– we are literally the only major city that doesn't have one.
I think downtown would be the best location for a large free-standing Apple store. If downtown truly wishes to become the center of the St. Louis region, like it once was, efforts to attract national and international retailers like the Apple store really should be made. This would also be far enough from the stores to the west to not compete too much and would attract Illinois residents.
I agree that the Loop is still a bit “gritty” compared to Apple's image, and it would be in the best interest of the Loop to hold onto whatever “grit” still exists there.
I also think downtown would be a great choice. The lot next to Big Shark on Delmar seems perfect, but I think a downtown location would serve a wider base and seems more likely for apple to consider anyway. With Old Navy and American Apparel considering downtown STL locations, the prospect of a downtown apple store doesn't seem too far off.
Apple has a street level store on Walnut Street in Pittsburgh's Shadyside neighborhood, so urban locations in similarly-sized cities is not an untested concept.
Same goes for American Apparel– we are literally the only major city that doesn't have one.
apple is lame. I'd much rather see a retail store that sells computers powered by ubuntu open up. the best thing to come out of apple is the iphone and even that is starting to run into competition. Ubuntu is a free OS and its my favorite by far. check out system76.com.
This year I've had more traffic from iPhone users than those using Linux.
One, I don't think San Fran has any viable retail malls near this location, while they do have a vibrant urban retail scene downtown (unlike here). Two, “Apple said . . . that it will focus on bigger flagship stores in major cities.” I doubt they consider STL (the city, not the region) to be a “major city”. While I'm guessing that they're satisfied with their two existing locations here, IF they did decide to do another one, I'd expect it to happene somewhere between Chesterfield and Wentzville (as in “follow the money”), although Ballpark Village might work, as well . . .
Thankfully Apple doesn't think the way most retailers do. None of their stores are freestanding in parking lots. Not one. The street level stores are in walkable areas. Their 5th Ave NY location is in a space that had been a retail dud for a couple decades. Now it is out earning other retailers on the streets. St. Louis us unlikely to get a new “significant” store but a larger replacement for the Galleria store is highly probable. You will never see an Apple store in the region outside the I-270 loop.
SF has an enormous, high-end, bustling Westfield shopping mall only a few hundred feet away from this Apple store.
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