$2,489 vs $971 Revenue Per Square Foot


photo by ifoapplestore.

Steve Lohr takes an interesting look at Apple’s retail store initiatives (high end, expensive locations, large open spaces and lots of space to play with the goodies), their inspiration and performance:

“We had to design an experience that was as big as the space,” said Mr. Johnson, 47, who is senior vice president in charge of the stores. “When your product line is the size of a conference table, that is a real risk.”

Taking that risk has paid off handsomely so far. Since it opened its first two stores five years ago today, the Apple chain has become a retailing phenomenon. Necessity and inspiration led Apple to toss out the conventional textbook on computer stores and to ignore the rules of location, design, staffing and services provided.

Revenue for each square foot at Apple stores last year was $2,489, compared with $971 at Best Buy, the big computer and electronics retailer, according to Forrester Research, a market research firm.

This evening, Apple is opening a showcase store in Manhattan that will burnish the company’s reputation for clever design. The entrance to the store, on Fifth Avenue between 58th and 59th Streets, is a glass cube, 32 feet on each side, with a suspended Apple logo inside. Customers walk down a circular staircase — or take a cylindrical glass elevator — to the 10,000-square-foot store below. The store will be open 24 hours a day, seven days a week — a first for Apple and an acknowledgment of New York’s status as a round-the-clock city.