Apple leads brick-and-mortar retail with $5,546 in sales per square foot
Apple remains one of the most successful brick-and-mortar retailers in the world with sales of $5,546 per square foot, according to recent research.
By comparison, the leading food service retailer, Reis & Ivy, has $3,970 per square foot, while gas/convenience chain Murphy USA has $3,721, eMarketer noted. Even the top jeweler, Tiffany & Co., is sitting at $2,951.
Apple has nearly 500 stores worldwide, with some of its bigger locations -- like Union Square in San Francisco -- taking up multiple floors. Its per-foot performance is likely due to a combination of online and offline sales, plus the value of its electronics. An iPhone 7 starts at $649, and most Macs cost well over $1,000.
Apple has achieved higher rates in the past, such as in 2011, when it reached an estimated $5,600. The dip may be linked to an overall decline in physical retail, as CoStar research suggests the average take has fallen from $375 in the early 2000s to $325.
One of Apple's next stores will be located inside Washington, D.C.'s Carnegie Library, taking up a sizable 63,000 square feet once renovations and general construction are complete.
By comparison, the leading food service retailer, Reis & Ivy, has $3,970 per square foot, while gas/convenience chain Murphy USA has $3,721, eMarketer noted. Even the top jeweler, Tiffany & Co., is sitting at $2,951.
Apple has nearly 500 stores worldwide, with some of its bigger locations -- like Union Square in San Francisco -- taking up multiple floors. Its per-foot performance is likely due to a combination of online and offline sales, plus the value of its electronics. An iPhone 7 starts at $649, and most Macs cost well over $1,000.
Apple has achieved higher rates in the past, such as in 2011, when it reached an estimated $5,600. The dip may be linked to an overall decline in physical retail, as CoStar research suggests the average take has fallen from $375 in the early 2000s to $325.
One of Apple's next stores will be located inside Washington, D.C.'s Carnegie Library, taking up a sizable 63,000 square feet once renovations and general construction are complete.
Comments
Reconcile: 1000 units at $999 apiece, vs. 800 units at $1299 apiece
Less units, higher price = more revenue.
And it'll be $ per square foot per year.
Wikipedia probably has it right -- it is most likely dollars per square foot per year. https://en.wikipedia.org/wiki/Sales_per_unit_area
Why on earth would the brick-and-mortar sales figures include online sales? How does that make any sense?
And what is meant by "plus the value of its electronics"?
What a strange sentence...
And Apple Watch is not only the best-selling wearable of all time, it is now among the very best-selling watches of any type. It's a big success.
And iPhone sales are doing great. Who are these "analysts" you're listening to? Apple puts out accurate figures every quarter, so you don't have to listen to "analysts" to know how they're doing. The fact is, they are doing incredibly well - better than any other consumer electronics company.
Yes, Company A's retail sales per square foot dropped but they still beat Company B.
Even if the entire bricks-and-mortar retail industry is in decline, if you are still generating more revenue per square foot than anyone else, you are still number one in that category.
More important is profit. Apple has a high profit margin, so despite its meager market share, it is raking in the lion's share of industry profits.
This has been going on for maybe 12-15 years on the PC side, and certainly the last five years of smartphone sales. Even if Samsung sells a boatload more smartphones than Apple, the margins are far less.
For PCs, Apple's overall market share is tiny, but they make something like 98% of the industry's profits in the $1000+ market, which is where almost all of their computer products are priced. Everyone else is scrapping it out for breadcrumbs.
Likewise, for smartphones, only two companies are making a profit: Apple and Samsung. LG might still be breaking even, but basically everyone else is losing money.
You need to learn a bit more about competitive analysis.
This isn't about Apple trying to beat all-time records, it is about Apple trying to do better than their competition *TODAY*.
The Olympic gold medal is not awarded to whoever performed the best in history, it is based on a particular competition over a defined timeframe.
I assume you have zero knowledge about athletic competitions.
When you swim in a medal race, you are not competing against history, you just need to be faster than anyone else in that pool.
That's what these statistics are about. Measured performance over a certain timeframe under certain criteria.
Because people order online and ship to store? Or, in the case of Apple, they reserve something in the store online and come to pick it up.
Does it count as an online purchase with a will-call fulfillment or is it a retail purchase at a bricks-and-mortar store?
I would say that the bricks-and-mortar retail staff should not get the credit for the sale, since they had nothing to do with the purchase. The bricks-and-mortar store is simply a fulfillment center at this point, no different than picking it up at a UPS distribution hub.
One thing is for sure: Apple cannot count it as both.
Some other Wall St types may see the leases etc that Apple has signed up to as a sign of their inability to change quickly. This does totally ignore the amount of business that Apple does in those 'legacy' stores.
To the Analysts it is all about agility in business. The slow, steady and doing it right (mostly) path that Apple follows these days is totally out of kilter with their view of the world.
Google OTOH, is constantly announcing new programmes and initiatives. Wall St see this as goodness.
Not many of those google products last the course but Wall St don't see this as bad.