Apple's Atlantic City store to close, displacing 52 workers

Posted:
in General Discussion edited May 2018
Apple has announced the impending closure of a store in Atlantic City, N.J. without plans to open a new one in the surrounding vicinity.

applestore-thepier


Apple confirmed the closure of the Pier location in a statement to AppleInsider. The company first launched the shop in 2006, taking advantage of The Pier's connection to the Caesars Atlantic City Hotel and Casino.

The company has filed a Worker Adjustment and Retraning Notifcation with the state, covering the 52 people impacted by the decision, Bloomberg noted. In another statement Apple blamed the situation on a "sharp decline in tourism and visitors to the area," saying it will shut down the store once its lease expires, without giving a specific date.

"We are offering all of the store's employees other jobs within Apple, and we look forward to serving our Greater Atlantic City customers through our other southern New Jersey, Delaware Valley, and Greater Philadelphia area stores," the company added.

As one of the world's biggest corporations with billions in profits every quarter, Apple has rarely felt a need to shutter outlets. In fact the closure of a Simi Valley store in Sept. 2017 was considered a rare event, especially since the company was on the verge of shipping the iPhone 8, iPhone X, Apple TV 4K, and Apple Watch Series 3.

Comments

  • Reply 1 of 18
    jungmarkjungmark Posts: 6,705member
    It's tough. The Pier never really caught on. Perhaps they can try the Borgata in the Marina district. 
    watto_cobra
  • Reply 2 of 18
    Two words: Online gambling.
    watto_cobra
  • Reply 3 of 18
    dasanman69dasanman69 Posts: 12,980member
    Two words: Online gambling.
    Actually more likely due to the Resorts World casino in Queens  
    ronnwatto_cobra
  • Reply 4 of 18
    asciiascii Posts: 5,941member
    Well there's your problem. Look at the photo, they've got hardly any stock :)
    donjuanjbdragonmelodyof1974watto_cobra
  • Reply 5 of 18
    lkrupplkrupp Posts: 7,161member
    So the slow implosion begins with a single store closure. Since Steve died it’s only been a matter of time. Innovation is dead, vision is dead, the rotting corpse is uncovered. Doomsday approaches and no one will shed a tear. The king is dead, long live Samsung! 


    Sincerely yours,

    The Troll Army


    bb-15tmaymacxpresslukeicityguidetokyojimusphericdonjuanjungmarkcornchip
  • Reply 6 of 18
    rossb2rossb2 Posts: 40member
    lkrupp said:
    So the slow implosion begins with a single store closure. Since Steve died it’s only been a matter of time. Innovation is dead, vision is dead, the rotting corpse is uncovered. Doomsday approaches and no one will shed a tear. The king is dead, long live Samsung! 


    Sincerely yours,

    The Troll Army


    This is not really a sign of implosion. Apple do well selling their products in store, given Apples own online platform and many other online options. Personally I buy my Apple products from U.K. online retailer “John Lewis”, as they offer their own 1 year extended warranty . 


    watto_cobra
  • Reply 7 of 18
    dewmedewme Posts: 2,099member
    Smart business move, it makes no sense to continue to fund an underperforming store. Pruning is necessary to preserve the heath of the larger organization. From the sounds of things it looks like Apple is treating all of the displaced workers with dignity and respect - plus offering transition to other Apple operations. Good luck to everyone affected.
    watto_cobra
  • Reply 8 of 18
    SpamSandwichSpamSandwich Posts: 31,191member
    Two words: Online gambling.
    And to be more on point: Online sports gambling.
    watto_cobra
  • Reply 9 of 18
    opa karlopa karl Posts: 18member
    lkrupp said:
    So the slow implosion begins with a single store closure. Since Steve died it’s only been a matter of time. Innovation is dead, vision is dead, the rotting corpse is uncovered. Doomsday approaches and no one will shed a tear. The king is dead, long live Samsung! 


    Sincerely yours,

    The Troll Army


    Your sarcasm wan't very good.
    bonobobzoetmbhammeroftruth
  • Reply 10 of 18
    EsquireCatsEsquireCats Posts: 601member
    I don't expect a company big or small to keep stores open if they have low visitation.

    While there are the rent and staff costs, there is also the issue of stocking a store which services so few people. As we already know during a launch, Apple's devices are in short supply and stocking a store which has few visitors robs stock levels from those stores which customers are actually visiting.
    watto_cobra
  • Reply 11 of 18
    dasanman69dasanman69 Posts: 12,980member
    rossb2 said:
    lkrupp said:
    So the slow implosion begins with a single store closure. Since Steve died it’s only been a matter of time. Innovation is dead, vision is dead, the rotting corpse is uncovered. Doomsday approaches and no one will shed a tear. The king is dead, long live Samsung! 


    Sincerely yours,

    The Troll Army


    This is not really a sign of implosion. Apple do well selling their products in store, given Apples own online platform and many other online options. Personally I buy my Apple products from U.K. online retailer “John Lewis”, as they offer their own 1 year extended warranty . 


    He was being facetious 
    macseekercornchipbshank
  • Reply 12 of 18
    macxpressmacxpress Posts: 4,897member
    opa karl said:
    lkrupp said:
    So the slow implosion begins with a single store closure. Since Steve died it’s only been a matter of time. Innovation is dead, vision is dead, the rotting corpse is uncovered. Doomsday approaches and no one will shed a tear. The king is dead, long live Samsung! 


    Sincerely yours,

    The Troll Army


    Your sarcasm wan't very good.
    Did it offend you? I thought it was brilliant! Its exactly what some are thinking. They only think this everyday. Ever since 2011 Apple is gone straight to the crapper and it would magically be so much better if Steve were here as if they can predict the future. 
    bshankwatto_cobra
  • Reply 13 of 18
    jcs2305jcs2305 Posts: 761member
    opa karl said:
    lkrupp said:
    So the slow implosion begins with a single store closure. Since Steve died it’s only been a matter of time. Innovation is dead, vision is dead, the rotting corpse is uncovered. Doomsday approaches and no one will shed a tear. The king is dead, long live Samsung! 


    Sincerely yours,

    The Troll Army


    Your sarcasm wan't very good.

    facetious

    fa·ce·tious
    fəˈsēSHəs/
    adjective
    1. treating serious issues with deliberately inappropriate humor; flippant.
    bshank
  • Reply 14 of 18
    NotsofastNotsofast Posts: 389member
    "As one of the world's biggest corporations with billions in profits every quarter, Apple has rarely felt a need to shutter outlets. "  That's not how business decisions are made. It's irrelevant how much their overall profits are, company's don't keep unprofitable stores, products, services, etc., around just because they have other profits.  The reason Apple hasn't shuttered other stores is because those stores are profitable, unlike the AC store that is in a dying mall with few stores left.
    watto_cobra
  • Reply 15 of 18
    I’m not surprised. This store is oddly placed and parking at caesars is ridiculously expensive along with tolls to even get there in the shortest distance and routine shore traffic which can be a nightmare. 

    You can can park at resorts for free but then it’s either a decent walk on the boardwalk or pay to ride the not pleasant boardwalk jitney. Even if you park at caesars it is still a decent walk through the casino to the pier location. 

    To me, this says nothing about Apple’s viability but moreso about a location turned bad on many fronts for many reasons and it makes sense to close up shop while honoring their lease and helping soon to be displaced employees as best they can. 

    I always opted to drive to the Marlton store where you can park right at the store and you’re surrounded by nice shops and eateries. 
    watto_cobra
  • Reply 16 of 18
    bshankbshank Posts: 162member
    Notsofast said:
    "As one of the world's biggest corporations with billions in profits every quarter, Apple has rarely felt a need to shutter outlets. "  That's not how business decisions are made. It's irrelevant how much their overall profits are, company's don't keep unprofitable stores, products, services, etc., around just because they have other profits.  The reason Apple hasn't shuttered other stores is because those stores are profitable, unlike the AC store that is in a dying mall with few stores left.
    Atlantic City not only has lower and lower traffic, but it’s not a city that’s necessarily great for the brand either at this time. Cut and run
    watto_cobra
  • Reply 17 of 18
    zoetmbzoetmb Posts: 2,453member
    Notsofast said:
    "As one of the world's biggest corporations with billions in profits every quarter, Apple has rarely felt a need to shutter outlets. "  That's not how business decisions are made. It's irrelevant how much their overall profits are, company's don't keep unprofitable stores, products, services, etc., around just because they have other profits.  The reason Apple hasn't shuttered other stores is because those stores are profitable, unlike the AC store that is in a dying mall with few stores left.
    Actually, that's not completely accurate, especially for large corporations.  While the standard corporate measure for business success in retail is indeed "year over year same store sales" (as well as "sales per square foot"), there are plenty of instances of chains keeping stores open for strategic reasons, even if they're not profitable.   Sometimes, it's to keep out the competition.   Other times, it's to have a marketing presence.  

    Due to exorbitantly high rents, sometimes in the range of up to $2000 per square foot, very few of the retailers on Madison Avenue above 59th street in Manhattan are profitable.   But the stores stay because they promote high-end brands.   

    The fact is that Apple doesn't report individual store sales and we have no idea whether all their mall stores are profitable.   I've been in malls where you could throw a bowling ball down the hallway and you wouldn't hit anyone and because of e-commerce and other factors, some analysts predicted in December of 2017 that 25% of U.S. malls will close over the next five years.    

    This is no surprise to me.   As I've posted before, I live in a 205-unit apartment building and we receive 50 packages a day - almost every one of those something that was not purchased from a physical retailer and a high percentage from Amazon in spite of the fact that hundreds of retailers are walking distance away.   Outside of the types of items that one has to feel, touch, try-on or be demonstrated, I see massive retail closures happening over the next ten years.     When you have retailers who aren't profitable each year until Black Friday, the loss from e-commerce means that they're unprofitable period.  

    I think that over time, we'll see more underperforming Apple stores close as leases are up unless Apple is able to negotiate a lower-priced lease.   Except for training or service, why does one need an Apple store anyway?  If you know what you want, it's just as easy if not easier to order it online whether from Apple or another retailer and I would guess that most of what Apple sells are not impulse purchases (except maybe in the richest neighborhoods). 
  • Reply 18 of 18
    Stores close. It happens sometimes. 
    The workers can get other Apple jobs if they want and they were probably notified a long time ago that this is going to happen. 

    That's the rough side of Apple's retail success. You can't have a store that underperforms around forever. 
    watto_cobra
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