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Apple Store

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(Redirected from Apple Retail Store)
This article is about the retail chain by Apple. For the store in London founded by the Beatles, see Apple Boutique. For Apple's online app store, see App Store (Apple). For other uses, see Apple Store (disambiguation).

Apple Store
Company typeDivision
IndustryRetail
FoundedMay 19, 2001 (23 years ago) (2001-05-19)
Tysons, Virginia, and Glendale, California, U.S.
Founder
HeadquartersApple Park,
Cupertino, California
,
United States
Number of locations
532 locations[1]
(272 U.S./260 elsewhere)
Key people
Products
ParentApple Inc.
Websiteapple.com/retail

The Apple Store is a chain of retail stores owned and operated by Apple Inc. The stores sell, service and repair various Apple products, including Mac desktop and MacBook laptop personal computers, iPhone smartphones, iPad tablet computers, Apple Watch smartwatches, Apple TV digital media players, software, and both Apple-branded and selected third-party accessories.

The first Apple Stores were originally opened as two locations in May 2001 by then-CEO Steve Jobs, after years of attempting but failing store-within-a-store concepts. Seeing a need for improved retail presentation of the company's products, he began an effort in 1997 to revamp the retail program to get an improved relationship with consumers and hired Ron Johnson in 2000. Jobs relaunched Apple's online store in 1997 and opened the first two physical stores in 2001. The media initially speculated that Apple would fail, but its stores were highly successful, bypassing the sales numbers of competing nearby stores and within three years reached US$1 billion in annual sales, becoming the fastest retailer in history to do so. Apple has expanded the number of retail locations and its geographical coverage over the years, with 531 stores across 27 countries and regions worldwide, opening its latest stores at the Westfield Mall of Scandinavia in Solna, Sweden and Del Amo Fashion Center in Torrance, California on September 20, 2024.[1][2] Strong product sales have placed Apple among the top-tier retail stores, with sales over $16 billion globally in 2011.

In May 2016, Angela Ahrendts, Apple's then-Senior Vice President of retail, unveiled a significantly redesigned Apple Store in Union Square, San Francisco, featuring large glass doors for the entry, open spaces, and rebranded rooms.

Many Apple Stores are located inside shopping malls, but Apple has built several stand-alone flagship stores in high-profile locations. It has been granted design patents and received architectural awards for its stores' designs and construction, specifically for its use of glass staircases and cubes. The success of Apple Stores has had significant influence over other consumer electronics retailers, who have lost traffic, control and profits due to perceived higher quality of service and products at Apple Stores. Apple's notable brand loyalty among consumers causes long lines of hundreds of people at new Apple Store openings or product releases. Due to the popularity of the brand, Apple receives many job applications, many of which come from young workers. Apple Store employees receive above-average pay, are offered money toward education and health care, and receive product discounts; however, there are limited or no paths of career advancement. A May 2016 report with an anonymous retail employee highlighted a hostile work environment with harassment from customers, intense internal criticism, and a lack of significant bonuses for securing major business contracts.

Overview

[edit]
Apple Fifth Avenue, one of Apple's flagship stores in New York City
Apple's flagship Silicon Valley store, at Westfield Valley Fair in San Jose, California

Many Apple Stores are located inside shopping malls, but Apple has several stand-alone flagship stores in high-profile locations, such as the one located in Grand Central Terminal in New York City.[3] Several multi-level stores feature glass staircases,[4][5][6] and some also glass bridges.[7] The New York Times wrote in 2011 that these features were part of then-CEO Steve Jobs' extensive attention to detail,[8] and Apple received a design patent in 2002 for its glass staircase design.[9][10][11] Historically, Apple has partnered with architectural firm Bohlin Cywinski Jackson in designing and creating its original retail stores, and has in recent years partnered with architectural firm Foster + Partners in designing its newer stores, as well as its corporate Apple Park campus.[12]

Second Apple flagship store in Latin America, Mexico City
Picture of the side of the Apple Store circling along the street in Pudong, Shanghai

Apple has received numerous architectural awards for its store designs,[13][14] and its "iconic" glass cube, designed in part by Peter Bohlin,[15][16] at Apple's Fifth Avenue store in New York City, received a separate design patent in 2014.[17][18][19]

Ron Johnson held the position of Senior Vice President of Retail Operations from 2001 until November 1, 2011.[20][21] During his tenure, it was reported that while Johnson was responsible for site selection, in-store service, and store layout, inventory was controlled by then-COO and now-CEO Tim Cook, who has a background in supply chain management.[22] In January 2012, Apple transferred retail leadership to John Browett.[23] However, after attempts to cut costs, including reducing new hires and limiting staff hours, he was fired after six months, later telling a conference that he "just didn't fit with the way they ran the business".[24][25] In October 2013, Apple hired Angela Ahrendts from Burberry.[26][27][28] When Ahrendts left in April 2019, Deirdre O’Brien expanded from Worldwide Sales and Operations, to People, and currently, to People and Retail. In an interview with Funke Mediengruppe in May 2021 she commented, Apple is sticking to its plan to open more stores around the globe in the future, as reported by Bloomberg.[29]

Work environment

[edit]
The Apple Store at The Grove shopping center in Los Angeles, California
See also: Apple worker organizations

Due to the popularity of the brand, applicants for jobs at Apple Stores are numerous, with many young workers applying.[30] The pace of work is high due to the popularity of the iPhone and iPad.[30] Employees typically work for only a few years as career prospects are limited with no path of advancement other than limited retail management slots.[30] Apple Store employees make above-average pay for retail employees and are offered benefits including 401(k) plans, product discounts, and reduced price on stock.[30] The retention rate for the technicians who staff the Genius Bar is more than 90%.[30][31]

Brazil's second Apple Store in Morumbi Shopping, São Paulo

A May 2016 Business Insider article featured a lengthy interview with an anonymous Apple Store retail worker in the United Kingdom, where the employee highlighted significant dissatisfaction and issues for retail workers, including harassment and death threats from customers, an intense internal criticism policy that feels "like a cult", a lack of any significant bonus if a worker manages to secure a business contract worth "hundreds of thousands", a lack of promotion opportunities, and are paid so little that many workers are unable to buy products themselves even with a "generous" discount on any Apple product or Apple stock.[32]

According to an April 2022 press release, over 70 percent of the eligible employees in the Apple Store located in the Cumberland Mall in Atlanta, Georgia, have signified interest in unionizing. The employees asked for a $28 per hour wage, better benefits, and profit-sharing. If successful, the effort would make the store the first unionized Apple retail store in the United States.[33]

Countries and regions

[edit]
Country / Region Date of
first store 		Location of
first store 		Date of
latest store 		Location of
latest store 		Number of stores Ref.
 United States May 19, 2001 Tysons Corner Center, Tysons Corner, Virginia September 20, 2024 Del Amo Fashion Center, Torrance, California 272 [34]
 China (mainland) July 19, 2008 Sanlitun, Beijing March 21, 2024 Jing'an District, Shanghai 47 [35][36]
 United Kingdom November 20, 2004 Regent Street, London June 15, 2023 Battersea, London 40 [37]
 Canada May 21, 2005 Yorkdale Shopping Centre, Toronto November 18, 2022 Pacific Centre, Vancouver 28
 Australia June 19, 2008 George Street, Sydney July 25, 2015 Westfield Miranda, Sydney 22 [38]
 France November 7, 2009 Carrousel du Louvre, Paris November 18, 2018 Champs-Élysées, Paris 20 [39]
 Italy March 31, 2007 Centro Commerciale Roma Est, Rome May 27, 2021 Via del Corso, Rome 17 [40]
 Germany December 6, 2008 1 Rosenstrasse, Munich, Bavaria December 2, 2021 Rosenthaler Strasse, Berlin 16 [41]
 Spain September 4, 2010 La Maquinista, Barcelona November 28, 2024 La Vaguada, Madrid 12 [42]
 Japan November 30, 2003 Ginza, Tokyo December 14, 2019 Lazona Kawasaki Plaza, Kawasaki 10 [43]
 South Korea January 27, 2018 Garosu-gil, Seoul January 20, 2024 Hongdae, Seoul, South Korea 7 [44]
 Hong Kong September 24, 2011 ifc Mall, Central and Western District September 22, 2016 apm Hong Kong 6 [45]
  Switzerland September 25, 2008 Rue de Rive, Geneva July 12, 2014 Freie Strasse, Basel 4 [46]
 United Arab Emirates October 29, 2015 Mall of the Emirates, Dubai
Yas Mall, Abu Dhabi 		February 25, 2022 Al Maryah Island, Abu Dhabi 4 [47]
 Netherlands March 3, 2012 Hirschbuilding, Leidseplein, Amsterdam August 9, 2014 De Passage, The Hague 3 [48]
 Sweden September 15, 2012 Westfield Täby Centrum, Täby September 20, 2024 Westfield Mall of Scandinavia, Solna 3 [49]
 Turkey April 5, 2014 Zorlu Center, Istanbul October 22, 2021 Bağdat Caddesi, Istanbul 3 [50]
 Singapore May 27, 2017 Orchard Road September 10, 2020 Marina Bay Sands 3 [51]
 Brazil February 15, 2014 VillageMall, Barra da Tijuca, Rio de Janeiro April 18, 2015 Morumbi, São Paulo 2 [50]
 Macau June 25, 2016 Galaxy Macau June 29, 2018 Cotai Strip 2 [52]
 Mexico September 24, 2016 Centro Santa Fe, Santa Fe, Mexico City September 28, 2019 Centro Comercial Antara Fashion Hall, Mexico City 2 [53]
 Taiwan July 1, 2017 Taipei 101, Taipei June 15, 2019 Xinyi A13, Taipei 2 [54]
 Thailand November 10, 2018 Iconsiam, Bangkok July 31, 2020 CentralWorld, Bangkok 2 [55]
 India April 18, 2023 Bandra Kurla Complex, Mumbai April 20, 2023 Saket, New Delhi 2 [56][57]
 Belgium September 19, 2015 Avenue de la Toison d’Or, Brussels 1 [58]
 Austria February 24, 2018 Kärntner Straße, Vienna 1 [59]
 Malaysia June 22, 2024 The Exchange TRX, Kuala Lumpur 1 [60][61]


Total 532 stores

History

[edit]
A spiral staircase inside the Apple Store in Boston
Apple Store in Aix-en-Provence, France

Third-party retail

[edit]

Steve Jobs, co-founder of Apple, returned to the company as interim CEO in 1997. According to his biographer Walter Isaacson, Jobs began a concerted campaign to help sales by improving the retail presentation of Macintosh computers. Even with new products launched under his watch, like the iMac and the PowerBook G3 and an online store, Apple still relied heavily on big-box computer and electronics stores for most of its sales. There, customers continued to deal with poorly trained and ill-maintained Mac sections that did not foster customer loyalty to Apple and did not help differentiate the Mac user experience from Windows.[62][63] In fact, the retailer trend was towards selling their own generic in-house brand PCs which used even cheaper components than those by major PC makers, increasing retailer overall margins by keeping the manufacturing profits. This "provided a powerful profit motive to convert customers interested in buying a Mac into the owners of a new, cheaply assembled, house brand PC".[64]

Tim Cook, who joined Apple in 1998 as Senior Vice President for Worldwide Operations, announced the company would "cut some channel partners that may not be providing the buying experience [Apple expects]. We're not happy with everybody." Jobs severed Apple's ties with every big box retailer, including Sears, Montgomery Ward, Best Buy, Circuit City, Computer City, and Office Max to focus its retail efforts with CompUSA—which reached an agreement to establish dedicated departments for Apple hardware, staffed by trained employees and representatives. Apple also worked with local user groups to promote launch events for new hardware and Mac OS releases.[65]

Between 1997 and 2000, the number of Mac authorized resellers dropped from 20,000 to just 11,000. The majority of these were cuts made by Apple itself. Jobs proclaimed that Apple would be targeting Dell as a competitor, with Cook's mandate to match or exceed Dell's lean inventories and streamlined supply chain. Jobs made an open statement to Michael Dell, "with our new products and our new store and our new build-to-order, we're coming after you, buddy." While Dell had operated as direct mail order and online order company, having pulled out of retailers to realize greater profit margins and efficiency, Apple had direct orders with sales handled by its channel partners, other mail order resellers, independent dealerships, and the new relationship with CompUSA.[64]

A revised concept for an Apple "store-within-a-store" was designed by Eight Inc., a San Francisco-based firm who had developed Apple's presences at the MacWorld expo; they were designed as a self-contained showroom with more minimalistic design that emphasized the products themselves. After a trial at retail outlets in Japan, CompUSA began to adopt the new concept for its locations beginning in 1999.[66][67] The "store within a store" approach still had shortcomings; acting as a mystery shopper, Macworld writer David Pogue observed that all but one of the locations he visited had employees who actively steered him towards Windows PCs and attacked Macs (such as claiming they did not have software available); the company's PR director Suzanne Shelton stated that finding "specialized" talent was difficult. Despite this, CompUSA sales of Macs had increased. Apple then added Best Buy as a second authorized reseller.[65] Challenges still remained, as resellers' profit margins on selling Macs was only around 9%, and selling Macs was only worthwhile if ongoing service and support contracts were provided, of which retailer experiences were inconsistent.[66]

Online store

[edit]

In 1997, the year Steve Jobs returned to Apple, Dell founder and CEO Michael Dell was asked how he would fix Apple. Dell responded: "I'd shut it down and give the money back to the shareholders". This angered Jobs, due to Dell's success with its online store originally built by NeXT, his former business that Apple acquired to bring Jobs back. A team of Apple and NeXT employees spent several months building an online store that would be better than Dell's. On November 10, 1997, Steve Jobs announced the online store at an Apple press event, and during his keynote speech, he said: "I guess what we want to tell you, Michael, is that with our new products and our new store and our new build-to-order manufacturing, we're coming after you, buddy."[68]

In August 2015, Apple revamped the online storefront, removing the dedicated "Store" tab and making the entire website a retail experience.[69][70] Later, in August 2021, a redesigned store section of the website returned, with products still being able to be purchased directly through their respective pages.[71]

Origins

[edit]
A line at the opening of the first Apple Store in the world. The store opened in 2001 at Tysons Corner Center in Tysons, Virginia near Washington, D.C.

Jobs believed the Apple retail program needed to fundamentally change the relationship to the customer, and provide more control over the presentation of Apple products and the Apple brand message. Jobs recognized the limitations of third-party retailing and began investigating options to change the model.[3]

In 1999, Jobs personally recruited Millard Drexler, former CEO of Gap Inc., to serve on Apple's board of directors.[3][72][73] In 2000, Jobs hired Ron Johnson from Target. The retail and development teams headed by Allen Moyer from The Walt Disney Company then began a series of mock-ups for the Apple Store inside a warehouse near the company's Cupertino headquarters.[3]

On May 15, 2001, Jobs hosted a press event at Apple's first store, located at the Tysons Corner Center mall in Tysons, Virginia, near Washington, D.C.[74] The store officially opened on May 19, along with another store in Glendale Galleria in Glendale, California.[74][3][75] More than 7,700 people visited Apple's first two stores in the opening weekend, spending a total of US$599,000.[76]

Expansion

[edit]
An Apple Store located at the Carnegie Library in Washington, D.C., opened in 2019.

Several publications and analysts predicted the failure of Apple Stores. However, the Apple retail program established its merits, bypassing the sales-per-square-foot measurement of competing nearby stores, and in 2004 reached $1 billion in annual sales, the fastest of any retailer in history. Sales continued to grow, reaching $1 billion a quarter by 2006. Then-CEO Steve Jobs said that "People haven't been willing to invest this much time and money or engineering in a store before", adding that "It's not important if the customer knows that. They just feel it. They feel something's a little different."[77] In 2011, Apple Stores in the United States had an average revenue of $473,000 for each employee.[30] According to research firm RetailSails, the Apple Store chain ranked first among U.S. retailers in terms of sales per unit area in 2011, almost doubling Tiffany, the second retailer on the list.[30] On a global level, all Apple Stores had a combined revenue of US$16 billion.[30] Under the leadership of Ron Johnson, the former senior Vice President of Retail Operations, the Apple Stores have, according to an article in The New York Times, been responsible for "[turning] the boring computer sales floor into a sleek playroom filled with gadgets".[78] The Apple Stores have also been credited with raising the company's brand equity, with Scott Galloway, Professor of Marketing at New York University Stern School of Business, stating that the Stores are the "temple to the brand which is this unbelievable experience called an Apple Store, and then you have this very mediocre experience called an AT&T or Verizon connect your phone experience for Samsung and the other Android players".[79]

Apple has since re-established ties with major big box retailers like Best Buy and Staples.[80] Authorized Apple resellers have a dedicated store-within-a-store section, offering a distinctive Apple-style experience to showcase products.[81] The relationship with Best Buy calls for the company to send Apple Solutions Consultants (ASCs) to train Best Buy employees to be familiar with Apple's product lineup.[63][82]

In an interview with Funke Mediengruppe in May 2021 Deirdre O'Brien commented, "Apple is sticking to its plan to open more stores around the globe in the future."[29]

Apple has announced it will expand Online Apple Store operations to Saudi Arabia by Summer 2025 and Retail Apple Store by 2026. It is in a stage of building a store in Diryah.[83]

Influence

[edit]

Apple Stores have considerably changed the landscape for consumer electronics retailers and influenced other technological companies to follow suit. According to The Globe and Mail, "Apple’s retail stores have taken traffic, control and profits away from Verizon as well as electronics retailers, such as Best Buy, that once looked at wireless phones as a lucrative profit source".[84] CNET has reported that the "Apple retail experience hurts Best Buy" and noted, "Buy a MacBook at the Apple Store and it's hard to go back to the Best Buy Windows laptop buying experience". The publication also wrote that "Apple salespeople are generally more knowledgeable, the products themselves are generally higher quality, and the stores are more appealing, aesthetically and practically."[85]

In October 2009, reports surfaced that Steve Jobs and his retail team would help "drastically overhaul" Disney Stores. His involvement was described by The New York Times as "particularly notable", given his work on the "highly successful" Apple Stores and his election to Disney's board of directors in 2006.[86][87]

In August 2009, the London Evening Standard reported that Apple's first store in the United Kingdom, at Regent Street, was the most profitable shop of its size in London, with the highest sales per square foot, taking in £60 million a year, or £2,000 per square foot.[88]

Many other electronics retailers from around the world such as Huawei, Samsung, Xiaomi started to follow the designing trend of Apple Store.[citation needed]

Redesign

[edit]
The Genius Grove at Union Square, San Francisco, after renovation in May 2016
Video wall

In May 2016, Apple significantly redesigned its Union Square Apple Store in downtown San Francisco, adding large glass doors for the entry, open spaces with touch-sensitive tables and shelves for product displays, and rebranded rooms for the store. "The Avenue" is the central location for hardware, as well as for receiving advice from salespersons and "Creative Pros" with specialized knowledge of music, photography, creativity, and apps. The "Genius Bar" becomes the "Genius Grove", a tree-lined area for help and support. "The Forum" features a large video screen and offers game nights, sessions with experts in creative arts, and community events. "The Plaza", while limited to select locations, offers a "park-like" space outside the store featuring free 24/7 Wi-Fi access and will host live concerts on some weekends.[89][90] Designed by Jony Ive and Angela Ahrendts, the idea was to make Apple Stores into "town squares", in which people come naturally to the store as a gathering place,[91] and to "help foster human experiences that draw people out of their digital bubbles".[92] The new design will be adopted to every store Apple has,[93] and while renovation is undergoing, stores are either relocated[94] or temporarily closed.[95]

In April 2017, Apple announced that its "Today at Apple" educational sessions, which launched with its Union Square redesign in 2016 and offer more than 60 free hands-on sessions for creative skills, will also be expanded to all of its stores.[96][97]

Starting May 2018, a Video Wall was added to stores around the world, and upgraded in some stores like Apple Palo Alto.[98]

Genius Bar

[edit]
Main article: Genius Bar
The Genius Bar at Apple Store Regent Street, London

All Apple Stores feature a Genius Bar, where customers can receive technical advice or set up service and repair for their products. The Genius Bar provides hardware service on products that are not classified vintage or obsolete.[99] However, in most cases the Geniuses will at least attempt to assist customers with older hardware.[100]

The Genius Bar at Apple Stores offers same-day service for both OLED/LCD screen and lithium-ion battery replacement. If the in-house technician needs to send the affected device to an Apple Repair Center, most repaired or replaced iPhones will be returned or ready for pickup in approximately 3 business days.

In May 2017, Apple launched a new program called Today at Apple. Customers can come in and receive free training from a Creative in more than 60 different sessions. Topics include basic device knowledge, Apple's professional film, and music editing software, coding for kids, and tools for using Apple products in classroom-based learning.[101]

The largest Genius Bar in the world is located in Amsterdam.[102]

Store openings

[edit]

Apple Store openings and new product releases can draw crowds of hundreds, with some waiting in line as much as a day before the opening.[103][104][105][106] The opening of New York City's Fifth Avenue store in 2006 was highly frequented, and had visitors from Europe who flew in for the event.[107]

Stores at corporate locations

[edit]
See also: Apple Park § Apple Park Visitor Center
Exterior of the Apple Campus store on Infinite Loop in 2010

In 1993, Apple opened a store, then known as The Company Store, at its Apple Campus on Infinite Loop in Cupertino, California. Predating the modern Apple Store chain, the store was, at the time, the only place in the world where Apple merchandise could be purchased, including T-shirts, mugs, and pens.[108] In June 2015, the store was closed for renovations,[109] and in September it was reopened, offering a new design resembling other Apple Store locations and, for the first time, selling iPhones.[110][108][111] The Infinite Loop location closed on January 20, 2024.[112]

As part of the process of moving its corporate headquarters to the new Apple Park complex, a similar store with exclusive merchandise opened as part of the Apple Park Visitor Center on November 17, 2017.[113]

Imitations

[edit]
An unauthorized Apple Store in Tehran, Iran

In July 2011, an American expatriate blogger who lives in the southwestern Chinese city of Kunming reported on her discovery of what she called "the best ripoff store we had ever seen"—a fake Apple Store, complete with the glass exterior, wood display tables, winding staircase and large promotional posters found in legitimate Apple Stores, and with employees wearing lanyards and the same T-shirts as actual Apple Store employees.[114] The Wall Street Journal reported that the store had "gotten widespread international attention for the remarkable lengths to which its proprietors seem to have gone to mimic the look and feel of a real Apple Store."[115] The fake Apple Store was mentioned by U.S. presidential contender Mitt Romney in the second 2012 election debate.[116] Chinese law prohibits retailers from copying the look and feel of competitors' stores, but enforcement is lax.[117]

According to The Wall Street Journal, unauthorized Apple resellers are found throughout China; the blogger's original post noted that two such stores were located within walking distance of the first knockoff, one of them with a misspelled sign reading "Apple Stoer".[115] An employee of the first knockoff confirmed that the store was not one of the 13[117] authorized Apple resellers in Kunming.[114][115] In a follow-up report, Reuters indicated that local authorities in Kunming had closed two fake Apple Stores in that city due to lack of official business permits, but allowed three other such stores to stay open, including the one that had attracted international attention. The operators of that store had applied for a reseller license from Apple.[117] At the time of the report, only four legitimate Apple Stores had opened in China, with two in Beijing and two in Shanghai.[115]

These imitation Apple Store locations should not be confused with Apple Premium Resellers, which are independent businesses authorized to sell Apple products, and which are expected by Apple to offer services comparable to the company's corporate stores and a similar store design aesthetic. Apple Premium Resellers typically operate in countries and suburban communities not served by Apple Stores.[118][119]

See also

[edit]

References

[edit]
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