At some point, I believe Apple will need to revisit it's retail strategy. Large malls are declining, in many areas, as online takes a larger share of consumer's wallets...
Don't forget that Apple stores are the most profitable physical retail stores of any company in the USA. The most profitable single store in the country is the 5th ave NYC store. (Not in a mall but still not an online store) Even in our large malls in NY however, the apple stores are always the most crowded stores in the mall typically. If you want an appointment at the Genius Bar, you are going to have to pic a time a week in advance or more during weekend hours. I am most familiar with my local store near me in Manhasset Long Island, which gets zero out-of-town tourists, and it seems more crowded than ever, even on weekdays.
Of all the retailers, I think Apple is by far the most protected from retailer rot. Not only is their revenue per sq ft massive, they're also excellent anchor stores for bringing in foot traffic and not needed nearly as much space as the traditional anchor store (e.g.: department store) which likely leads to a comparatively low rent, and have the aforementioned Genius Bar to continue to keep customers around. Apple Stores are like coral reefs.
The outdoor mall at Simi has been losing tenants almost as soon as it open 10 years ago. There is almost no foot traffic for any of the stores. I have been surprised Apple stayed as long as they did.
The Northridge and Topanga locations are always very busy.
Thanks for the perspective. Makes me feel OK as an investor.
I bought at $24. If you need this to make you feel ANY BETTER. then happy you (hint: All my macs have cost 0$).
Presumably the timing is dictated by the lease terms. It wouldn't make financial sense to re-up for a year just because it happened to expire a couple weeks before a new product launch.
sure is. per my sources the store was on a 10 year lease which is ending at the end of the month. they have to be completely out by then which will take a couple of weeks. thus the 15th is the perfect time. given they have 3 other stores that have been getting all the area traffic for ages it's really not a big deal. in fact that mall has been dead for a good 2-3 years. the only reason the store didn't shut down before then was that their contract would require them to still pay the rent until the lease runs out so why not have it open and hope for a little traffic. came in handy when they shut down the other stores for remodels etc
While there isn't a lot of foot traffic at this mall, every time I have gone to the Apple Store there it has been packed with people. It just seems strange that it is closing.
Comments
sure is. per my sources the store was on a 10 year lease which is ending at the end of the month. they have to be completely out by then which will take a couple of weeks. thus the 15th is the perfect time. given they have 3 other stores that have been getting all the area traffic for ages it's really not a big deal. in fact that mall has been dead for a good 2-3 years. the only reason the store didn't shut down before then was that their contract would require them to still pay the rent until the lease runs out so why not have it open and hope for a little traffic. came in handy when they shut down the other stores for remodels etc