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Apple to open new store-within-a-store outlets inside Target this year

post #1 of 80
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Apple will be opening new store-within-a-store locations in select Target locations later this year, enabling the company to expand its retail reach into smaller metro areas.

According to a source familiar with Apple's plans, the company plans to begin operating Apple-branded areas within 25 larger Target stores in locations which can't support a standalone Apple Store.

The initial opening would be a small start, given that Target, the second-largest discount retail chain in the US, operates 1752 stores in the US. Apple has opened 359 of its own retail stores globally, 245 of which are in the US.

Apple currently also operates a "store within a store" at over 600 Best Buy locations with "Apple Shops," some of which feature staffing by Apple Solution Consultants. Best Buy has over 1,000 total stores in the US.

Previous retail partnerships Apple once had with Sears, Circuit City, Computer City and Office Max were terminated in a decade ago when Apple focused its efforts on CompUSA and its own new retail stores. CompUSA has since gone out of business, and Best Buy was brought back as a "store within a store" retail partner mid-decade.

Targeting iPods and iOS devices

In October 2002, Apple began selling its iPod at all Target stores.

Tim Cook, then Apple's executive vice president of Worldwide Sales and Operations, said in a statement at the time, "Were thrilled that Target will significantly expand the availability of Apples award-winning iPod to even more customers. Apple has placed an operable iPod on display in each of Targets 1,148 stores, so every Target customer can use and listen to an iPod before they buy.

Target then became the first retailer outside of Apple and Best Buy to begin selling the iPad in October of 2010.

A month later, it announced that it would begin selling Apple's iPhone 3GS and iPhone 4 in just over half of its stores, about 850 locations equipped with Target Mobile sales centers.

Target has adorned its electronics sections with official Apple signage | Source: ifoAppleStore

With the move to opening full Apple mini-stores in new Target locations, the retailer could move beyond iOS devices to sell Apple's full product range, including Macs and AirPort wireless routers.
post #2 of 80
If this story was about Microsoft it would be called "Channel Stuffing"!
post #3 of 80
Quote:
Originally Posted by kresh View Post

If this story was about Microsoft it would be called "Channel Stuffing"!

When products sell as fast as you can put them on the shelves it isn't.
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post #4 of 80
Quote:
Originally Posted by digitalclips View Post

When products sell as fast as you can put them on the shelves it isn't.

is that why the display case in the picture is 3/4 full, hehe nice try
post #5 of 80
Doubtful they're going to sell Macs. They don't sell PCs of any kind.
I think the low trainability on iOS devices is all that Target is going to be able to handle.
post #6 of 80
Quote:
Originally Posted by Ferazel View Post

Doubtful they're going to sell Macs.

I'd be willing to bet money you're wrong. You just know the senior management at Target are Mac users.
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post #7 of 80
Target is a discount chain. Apple will damage their brand by associating with them.
post #8 of 80
Quote:
Originally Posted by kresh View Post

is that why the display case in the picture is 3/4 full, hehe nice try

Not what my local store looked like over the Christmas period. It looks like a stock shot for when the store opened. In the week after Christmas my local target's Apple display was a sad collection of empty shelves and those pole things they hang product from.
post #9 of 80
Quote:
Originally Posted by Ferazel View Post

I think the low trainability on iOS devices is all that Target is going to be able to handle.

Trainability is not particularly relevant when they just unlock that display and hand you the box you point at. Heavens man, even the "display unit" is under glass running a demo.
post #10 of 80
Considering that Best Buy is likely going to fold, this is an obvious choice to replace them.

Just please, no Walmart. Target may be discount, but they have style.
post #11 of 80
If Brooklyn were not part of NYC, it would be the fourth largest city in America. I'm baffled we don't have an Apple store yet when there are five enormous ones across the river.
post #12 of 80
Ron Johnson's wondering, "where's the love...?"
post #13 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.

No it wont. In a lot of areas there is only target to physically buy an apple product. Target is 5 min away from me while the apple store is 45 min.
post #14 of 80
That is strange. Dedham MA and Framingham MA both have apple stores and they can't have near the population density as Brooklyn.

Quote:
Originally Posted by Morky View Post

If Brooklyn were not part of NYC, it would be the fourth largest city in America. I'm baffled we don't have an Apple store yet when there are five enormous ones across the river.
post #15 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.

This is what I was told when I had a deal to do a store within a store at Target. The company owners, who incidentally didn't shop at Target (urban metro people with no kids and rich taste) , thought it would potentially hurt the brand and disrupt company stores. They were idiots and had no idea how beneficial it would have been to have 50+ million people walking by their brand.

The Target customer is the Apple customer - it's a natural fit. The last time I was at a Target corporate meeting, there were enough Apple posters and awards (for selling iTunes cards) around that it tells me they have a strong partnership and Target WILL move some significant numbers of products, be it iPods, iPhones, iPads or maybe even select MacBooks (Air's I am guessing) and iMacs.
post #16 of 80
Quote:
Originally Posted by Ferazel View Post

Doubtful they're going to sell Macs. They don't sell PCs of any kind.
I think the low trainability on iOS devices is all that Target is going to be able to handle.

Read a little closer dude...

Apple currently also operates a "store within a store" at over 600 Best Buy locations with "Apple Shops," some of which feature staffing by Apple Solution Consultants.
post #17 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.

You couldn't be more wrong. Target is, by definition, the alternate to Walmart. Go into both some time and compare the customers - the sample of people at Target is far and more higher class than Walmart customers.

I'd also like to remind you that people said the same thing when Apple started selling products in Walmart. It hasn't hurt them a bit.
post #18 of 80
Quote:
Originally Posted by Morky View Post

If Brooklyn were not part of NYC, it would be the fourth largest city in America. I'm baffled we don't have an Apple store yet when there are five enormous ones across the river.

Especially with the large hipster population.
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post #19 of 80
the author of the article is misinformed. Best Buy is NOT the only Apple Store-In-Store concept. The U.S. military retail exchanges have Apple SIS stores across the globe in select locations with all (4) services - AAFES for Army and Air Force, NEX for Navy/Marine and MPX for Marine only stations.
post #20 of 80
Quote:
Originally Posted by jmgregory1 View Post

This is what I was told when I had a deal to do a store within a store at Target. The company owners, who incidentally didn't shop at Target (urban metro people with no kids and rich taste) , thought it would potentially hurt the brand and disrupt company stores. They were idiots and had no idea how beneficial it would have been to have 50+ million people walking by their brand.

The Target customer is the Apple customer - it's a natural fit. The last time I was at a Target corporate meeting, there were enough Apple posters and awards (for selling iTunes cards) around that it tells me they have a strong partnership and Target WILL move some significant numbers of products, be it iPods, iPhones, iPads or maybe even select MacBooks (Air's I am guessing) and iMacs.

I remember when Apple products were bought in a "boutique".
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post #21 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.

No, Target is not a discount chain, it is simply a general goods store. Just use the eyeball test and walk into a Walmart and a Target. Take a look around at not only the people that shop there, but the people that work there. Look at the shelves, the layout, the lighting, the floors. It is so much more pleasing and satisfying to shop at Target than any of the other places it "competes" with. Hell, I work for Best Buy, and if my employee discount isn't drastically less, I still prefer to shop at Target.
post #22 of 80
Quote:
Originally Posted by debusoh View Post

That is strange. Dedham MA and Framingham MA both have apple stores and they can't have near the population density as Brooklyn.

Choosing store locations is not all about population density. They factor in things like:
- Average household income
- Shopping habits (if the Brooklyn residents with money tend to shop in NYC, there's no point in putting a store in Brooklyn).
There are a lot of places with high population density that aren't likely to EVER see an Apple Store.
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post #23 of 80
Currently, there are over 30 Apple SIS stores located worldwide at U.S. military bases inside the military retail exchanges with another 15+ adding on in 2012. All the Apple SIS stores have MSC's like the Best Buy stores (Macintosh Solutions Consultant) who certified trained via Apple's internal ASTO system.
post #24 of 80
Quote:
Originally Posted by hittrj01 View Post

No, Target is not a discount chain, it is simply a general goods store. Just use the eyeball test and walk into a Walmart and a Target. Take a look around at not only the people that shop there, but the people that work there. Look at the shelves, the layout, the lighting, the floors. It is so much more pleasing and satisfying to shop at Target than any of the other places it "competes" with. Hell, I work for Best Buy, and if my employee discount isn't drastically less, I still prefer to shop at Target.

Ironic! If you worked for Apple, they might fire you for posting something like this...
post #25 of 80
Quote:
Originally Posted by TimUSCA View Post

You couldn't be more wrong.

A very popular response, found on almost every thread here. Of course, I couldn't be more wrong.

Interesting to hear people's positive perceptions of Target vs the negative ones for WalMart. Never really saw the difference between the two and why people are so "on about WalMart" while giving Target a pass.

Bottom line, you will shop anywhere that gives you a cut rate price, regardless of what kind of company they are and how they treat their employees and community. You have to in this economy that I created. And we all really "need" iPads, don't we?
post #26 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.

Target has created a niche for themselves. At one point they were competing more strongly with Wal Mart, both selling things as cheaply as possible, but then they revamped and began selling a higher grade of product typically. Wal Mart did react to this and started making themselves a bit more like Target. It's interesting the way things have gone back and forth w/those 2 over the last decade.

Look at things like furniture at the 2 stores. I'd be more inclined to buy things from Target than from Wal Mart when it comes to things like that as the quality is typically higher.
post #27 of 80
Quote:
Originally Posted by majortom1981 View Post

No it wont. In a lot of areas there is only target to physically buy an apple product. Target is 5 min away from me while the apple store is 45 min.

Exact same situation here. This is really big news if it is true. I have a Best Buy nearby also, but they carry no Macs, just iOS devices. I'm sure the trolls will pound on this until Microsoft invents the idea of putting a store in every Dollar Store to promote their latest Zune type products. That would be fitting.
post #28 of 80
Any idea where these stores will be? I'd be anxious to check them out.
post #29 of 80
Quote:
Originally Posted by Obama View Post

You have to in this economy that I created.

This really isn't a play-acting forum. Just wanted to throw that out there in case you didn't know.

Anyway, this is no different from selling iDevices in places that aren't Apple Stores. Big deal. It's more exposure, really.

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post #30 of 80
Quote:
Originally Posted by Obama View Post

You have to in this economy that I created

You probably thought this was the President of the United States commenting on an AppleInsider thread about Target...

NOPE!

Chuck Testa
post #31 of 80
Quote:
Originally Posted by jragosta View Post

Choosing store locations is not all about population density. They factor in things like:
- Average household income
- Shopping habits (if the Brooklyn residents with money tend to shop in NYC, there's no point in putting a store in Brooklyn).
There are a lot of places with high population density that aren't likely to EVER see an Apple Store.

There are some plenty of high income neighborhoods in bklyn populated by people that couldn't afford Manhattan. An Apple store would fit in nicely surrounded by all the high end boutiques and markets.
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post #32 of 80
Quote:
Originally Posted by Ireland View Post

I'd be willing to bet money you're wrong. You just know the senior management at Target are Mac users.

Computer usage at the corporate level doesn't mean that there is going to be hardware sold at the store level. It needs to make financial sense for this to happen. I think they might sell iPads, iPods, AppleTVs, Time Machines, Airports, but I don't think they're going to sell actual Mac computers at the retail level.

Quote:
Originally Posted by Rattyuk View Post

Trainability is not particularly relevant when they just unlock that display and hand you the box you point at. Heavens man, even the "display unit" is under glass running a demo.

I think training to sell and upkeep computers is quite a bit higher to perform than selling iOS devices which as you so adeptly stated just requires unlocking a case. I'd argue that Target does a really poor job as selling digital cameras as well, because again the technical requirements to actually understand the hardware is higher than most Target employees are able/willing to be trained. I feel that this isn't going to be an acceptable sales experience if judged by Apple.

Quote:
Originally Posted by Grid View Post

Read a little closer dude...
Apple currently also operates a "store within a store" at over 600 Best Buy locations with "Apple Shops," some of which feature staffing by Apple Solution Consultants.

Best Buy has a history of selling computers. I remember when CompUSA was still around and had Apple store-in-a-stores. Apple hated them. The computers weren't maintained and the experience wasn't Apple branded. This lead to the Apple retail revolution. While they were able to partially alleviate this problem in Best Buy with these hired sales consultants, Apple would need to hire 2,000 more of these consultants in order to sell computers at stores that currently doesn't have any pc shopping foot traffic.

Like I said, Target could sell iOS devices (heck they already do!) and maybe some computer peripherals. Full-blown Mac computer shopping experience though? I think that's unlikely to happen.
post #33 of 80
Quote:
Originally Posted by kresh View Post

is that why the display case in the picture is 3/4 full, hehe nice try

So, I guess the stories of 3rd-party retailers being unhappy with not getting enough product is not true?
post #34 of 80
Quote:
Originally Posted by Mark Dodel View Post

Exact same situation here. This is really big news if it is true. I have a Best Buy nearby also, but they carry no Macs, just iOS devices. I'm sure the trolls will pound on this until Microsoft invents the idea of putting a store in every Dollar Store to promote their latest Zune type products. That would be fitting.

What Zune type products?
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post #35 of 80
Quote:
Originally Posted by Ferazel View Post

Like I said, Target could sell iOS devices (heck they already do!) and maybe some computer peripherals. Full-blown Mac computer shopping experience though? I think that's unlikely to happen.

I think if they actually sell computers we would see them selling Minis and maybe the Air and iMac. You know, basically what Best Buy has. I can't remember if our local BB even sells the MBP or not. They have iMacs, iPods, iPads and Airs for sure, as well as the usual peripherals and ATVs.
post #36 of 80
Quote:
Originally Posted by Mark Dodel View Post

Exact same situation here. This is really big news if it is true. I have a Best Buy nearby also, but they carry no Macs, just iOS devices. I'm sure the trolls will pound on this until Microsoft invents the idea of putting a store in every Dollar Store to promote their latest Zune type products. That would be fitting.

Quote:
Originally Posted by dasanman69 View Post

What Zune type products?

Haha @dasanman69: good point!! But then I thought of the Win7 Phones.
post #37 of 80
Quote:
Originally Posted by djmikeo View Post

Haha @dasanman69: good point!! But then I thought of the Win7 Phones.

That would be the Windows Phone 7 phones. An idiotic name for an idiotic product. The Zune for the 2010's.
post #38 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.


Have to agree with this. Even as an Apple shareholder interested in increasing Apple sales, which this most certainly will, over all it just seems to cheapen the brand a little. Look at Mossimo, Paul Frank, Thomas O'Brien, Michael Graves, Phillip Starck, etc... billionaires sure, but the brands they built are now more associated with a discount retailer than a high-end product.
post #39 of 80
Quote:
Originally Posted by ascii View Post

Target is a discount chain. Apple will damage their brand by associating with them.

Well then you certainly don't want to walk by the electronics department at Walmart and see the iPad's displayed for sale there.
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post #40 of 80
Quote:
Originally Posted by Morky View Post

If Brooklyn were not part of NYC, it would be the fourth largest city in America. I'm baffled we don't have an Apple store yet when there are five enormous ones across the river.

The problem is that the places that are high traffic are not the places that are "hip" and vice-versa. So where do you put the store?

Borough President Marty Markowitz was pushing for an Apple store on Court Street, but that particular shopping district can be kind of seedy, even though it's surrounded by wonderful cast-iron towers and brownstones. Park Slope's 7th Avenue or 5th Avenue would target the right market, but it's not high density. Same for Montague Street in Brooklyn Heights. In spite of expensive housing and some fine restaurants, Williamsburg is still kind of seedy (main drag looks a lot like Berkeley) and it's relatively low density except for those new buildings on the water. DUMBO might be a good place and has such stores as West Elm and Bo Concept, but it probably wouldn't attract a lot of consumers from outside the neighborhood.

Even though there is an Apple Store on 9th Avenue and 14th street, Jobs once killed a potential store that was going to be farther east, either on 14th street or 23rd street (I forget which) because he didn't like the way the neighborhood and surrounding stores looked (although they also tried for a store near the Flatiron Building, which was killed because idiots on the community board didn't like Apple's modern architecture in close proximity to the Flatiron.)

If Apple still cares about the way neighborhoods look, most neighborhoods in Brooklyn aren't going to appeal to them in spite of how expensive housing is in those areas.

Same issue in Queens which has about 2.3 million people to Brooklyn's 2.5 million. The Queens Center Mall had the highest sales per square foot of any mall in America before it was expanded, but it's not exactly "high end". There's the old COMP USA building in Rego Park which would be a perfect building for Apple (especially if they made it look similar to the Lincoln Center store), but there's nothing around it that's consistent with Apple's branding and quality. They could go to Bayside, but it doesn't get a lot of shoppers from outside the neighborhood. Astoria and Long Island City are hipper, but I can't see Apple going there either.
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