Apple to open up to 35 new retail stores in 2013
As part of Apple's 10-K filing with the U.S. Securities and Exchange Commission, the company revealed that it has plans to open 30 to 35 additional Apple Stores by September 2013, a number almost identical to this year's retail growth.
Apple opened 33 new brick-and-mortar stores during 2012, 28 of which were outside the U.S., bringing the total number of worldwide Apple Stores to 390. The company said in the filing that it plans to replicate 2012's growth by opening an additional 30 to 35 stores during the 2013 fiscal year, about three-quarters of which will be located outside the U.S.
The company is making an international retail push, and is looking to bring the number of overseas Apple Stores more in line with those located in the U.S. As of September 2012, there were 250 active Apple Stores in the U.S. compared to 140 international locations. Most recently, the company opened the doors to its largest Asian outlet at the Wangfujing mall in Beijing, China.
Despite not showing an increasing year-to-year growth rate, the new Apple Stores suggest the company's retail sector is enjoying steadily increasing sales. To that point, Apple said net sales for the segment increased $4.7 billion during 2012, a 33 percent increase from the year ago period.
"The growth in net sales during 2012 was driven primarily by increased demand for iPhone following the launches of iPhone 4S and iPhone 5, strong demand for the new iPad and iPad 2, and higher Mac net sales," according to Apple's filing.
For 2012, year-over-year growth in retail was down compared to Apple's other segments, accounting to 12 percent of total net sales, compared to 13 percent in 2011.
Despite the decrease in retail's overall contribution to Apple's bottom line, per store performance was higher year-to-year, with each location garnering an average of $51.5 million in revenue compared to $43.3 million in 2011.
While store revenues were up for the year, it was announced on Monday that Apple's Senior Vice President of Retail John Browett would be leaving the company after being on the job for less than one year. It is unclear how much of the Apple Store's recent success can be attributed to Browett, however the decision to let the executive go comes after a series of negative reports that cast a shadow on his tenure at Apple.
The search for a suitable replacement is already underway, and CEO Tim Cook will be running the division in the interim.
Apple opened 33 new brick-and-mortar stores during 2012, 28 of which were outside the U.S., bringing the total number of worldwide Apple Stores to 390. The company said in the filing that it plans to replicate 2012's growth by opening an additional 30 to 35 stores during the 2013 fiscal year, about three-quarters of which will be located outside the U.S.
The company is making an international retail push, and is looking to bring the number of overseas Apple Stores more in line with those located in the U.S. As of September 2012, there were 250 active Apple Stores in the U.S. compared to 140 international locations. Most recently, the company opened the doors to its largest Asian outlet at the Wangfujing mall in Beijing, China.
Despite not showing an increasing year-to-year growth rate, the new Apple Stores suggest the company's retail sector is enjoying steadily increasing sales. To that point, Apple said net sales for the segment increased $4.7 billion during 2012, a 33 percent increase from the year ago period.
"The growth in net sales during 2012 was driven primarily by increased demand for iPhone following the launches of iPhone 4S and iPhone 5, strong demand for the new iPad and iPad 2, and higher Mac net sales," according to Apple's filing.
For 2012, year-over-year growth in retail was down compared to Apple's other segments, accounting to 12 percent of total net sales, compared to 13 percent in 2011.
Despite the decrease in retail's overall contribution to Apple's bottom line, per store performance was higher year-to-year, with each location garnering an average of $51.5 million in revenue compared to $43.3 million in 2011.
While store revenues were up for the year, it was announced on Monday that Apple's Senior Vice President of Retail John Browett would be leaving the company after being on the job for less than one year. It is unclear how much of the Apple Store's recent success can be attributed to Browett, however the decision to let the executive go comes after a series of negative reports that cast a shadow on his tenure at Apple.
The search for a suitable replacement is already underway, and CEO Tim Cook will be running the division in the interim.
Comments
That's better than firing retail employees, eh?
How many of them will be in Portugal?
They're building a new one in a mall near me. Apple's tried very hard to keep it under wraps, but with all the remodeling they are doing for it it's now drawn some criticism from the town as the building isn't exactly constructed to support the weight ironically enough for the Apple design they use, and there's code concerns. It's moving ahead anyway.
I can see why they showed Browett the door.
I can tell you this, if Apple opens one closer to me (as was rumored back in 2009) then I want a part time job. The nearest now is about 25 miles away and with a full time job and family, the distance is just too much.
He was never a good fit. It was obvious. I think Cook would be better served giving the roll to an existing Apple employee who understands the company. Ideally someone with more time to focus on the stores more than himself.
Apple isn't a person, you know. It was Cook who hired him, and he intended keeping him, that is until he realised he wasn't a good fit. It was an interesting experiment, I think, I'd bet Cook learned a lot.
But what was he experimenting on? Whether or not worsening the customer experience is a good way to increase profits? I mean, Cook and others had to know that's what he was all about. I hardly doubt during the interview he lied and said he was going to increase efficiencies and then just decided to fire people instead. I'm not a gloom and doomer but that hire makes me worry. It's not like the experience in an Apple store is that great right now anyway. Person greats you at door. You tell them what you want to buy and they point to an area for you to stand and wait for 10-20 minutes (on a good day.)
Hope they don't turn the stores into another Starbucks or Gap and overbuild and over-expose to the point they lose their relevance and special feeling. Keep it reasonable Apple.
Keeping it reasonable probably involves reducing those damn queues on product launch days so they should probably keep popping them out for a while yet.
Next thing they need to focus on is either increasing their supplies or culling their customers...
Quote:
Originally Posted by oneaburns
But what was he experimenting on? Whether or not worsening the customer experience is a good way to increase profits? I mean, Cook and others had to know that's what he was all about. I hardly doubt during the interview he lied and said he was going to increase efficiencies and then just decided to fire people instead. I'm not a gloom and doomer but that hire makes me worry. It's not like the experience in an Apple store is that great right now anyway. Person greats you at door. You tell them what you want to buy and they point to an area for you to stand and wait for 10-20 minutes (on a good day.)
A top flight executive should be adaptable. Browett's remit at the Dixons Group was to keep the company profitable in a cut-throat market. I imagine that part of the reason Cook hired him was because he not only expanded the Dixons retail arm (during a recession), he also managed to drive their nearest competitor out of business. Browett also realised that in a recession, he needed to focus on the more affluent customers, which is why he introduced the Black Store concept to the retail chain:
He wasn't fired for his lack of ability; he was fired because he tried to establish a name for himself by scoring a quick win at the expense of Apple's retail customers and employees. This sort of empire-building causes great companies to become mired in internal strife and unable to respond quickly to changes in the market place (look how long it took Microsoft to respond to iOS and Android).
And the fact that Cook removed Forstall at the same time indicates that the head of iOS development was removed for pretty much the same reason: Cook understands that everyone pulling together is key to Apple's continued success, so he doesn't have time for executives who are focussed on building kingdoms.
Yes, hiring Browett was a mistake, but the important thing to remember is that Cook fixed the mistake, regardless of how it made him look for taking on Browett in the first place. That tells you a lot about him as a CEO.
That's because you live in a large country. My country has only one store, but it's only a one hour drive. Simply because the country is so small (1/3 of Arkansas)