Apple ditching plans for Israeli store after rejections by mall owners
Apple has reportedly scrapped plans to launch any Israeli retail store in the near future, despite potentially lucrative sales.
The Azrieli Sarona Tower in Tel Aviv.
The company had been considering a shop at the base of the Azrieli Sarona Tower, a skyscraper in Tel Aviv, but the Azrieli Group rejected proposed financial terms, according to Haaretz. The paper further claimed that no mall owner in the country has been willing to accept Apple conditions, leading to it stepping back after a year or more of searching.
One of Apple's demands was help covering marketing and inventory costs, a Haaretz source said. The company has made similar demands for carriers selling iPhones, despite it making tens of billions in profits each quarter.
Apple has been met with at least two other cases of resistance to retail plans in the past year. These include a proposed store in Melbourne, Australia, which even after a redesign is facing opposition to a prerequisite demolition. In Stockholm, Sweden, the public and local government turned against a shop that would've appeared in the historic Kungstradgarden. Apple may now be trying to sell the land back to the city at a higher cost than it paid.
Israel is one of the richer countries in the Middle East, with many residents enjoying a Western-level lifestyle. Apple products are imported and sold exclusively by resellers though, contributing to high prices.
The Azrieli Sarona Tower in Tel Aviv.
The company had been considering a shop at the base of the Azrieli Sarona Tower, a skyscraper in Tel Aviv, but the Azrieli Group rejected proposed financial terms, according to Haaretz. The paper further claimed that no mall owner in the country has been willing to accept Apple conditions, leading to it stepping back after a year or more of searching.
One of Apple's demands was help covering marketing and inventory costs, a Haaretz source said. The company has made similar demands for carriers selling iPhones, despite it making tens of billions in profits each quarter.
Apple has been met with at least two other cases of resistance to retail plans in the past year. These include a proposed store in Melbourne, Australia, which even after a redesign is facing opposition to a prerequisite demolition. In Stockholm, Sweden, the public and local government turned against a shop that would've appeared in the historic Kungstradgarden. Apple may now be trying to sell the land back to the city at a higher cost than it paid.
Israel is one of the richer countries in the Middle East, with many residents enjoying a Western-level lifestyle. Apple products are imported and sold exclusively by resellers though, contributing to high prices.
Comments
https://www.curbed.com/2015/3/16/9980488/apple-retail-stores-get-sweetheart-deals-at-malls
https://www.igeeksblog.com/mall-owners-in-israel-not-accept-apple-terms-conditions-01042019/
By your analogy, the next time you're due for a raise at work you should decline it so as to not seem "greedy." Plus it's obvious you're already paid enough to make ends meet.
Tenants already pay landlords for those costs. It's called rent, and for most mall tenants it is generally a much higher percentage of revenues than 30%.
Mall’s in the US are struggling for relevecy, but that’s not true everywhere else in the world.
Apple does look bad, and not a good neighbor. If Apple demands concessions, other tenants will have to pay for them in higher rent.
Apple has some questionable business practices lately. My high regard is declining.
However, this seems to be the exception rather than the rule when you consider all the grandiose and not so grandiose Apple stores that have opened all over the world. It would not be unreasonable to assume that Apple drove similarly hard bargains at each of those locations yet those landlords must have thought juice was worth the squeeze.
In my city, Microsoft even relocated their store from the "glamorous" end of the mall (with the Tiffany, Chanel, Neimans, Gucci, Prada, etc. type stores) to a more "pedestrian" part of the mall (where the GAP and Bath and Body Works are) right next door to the Apple Store (which had also doubled in size since it opened).
1. Microsoft drove software companies like WordPerfect & Lotus, into the ground (with unfair practices).
Mall tenant rent has nothing to do with that.
2. Apple’s terms in your words are greedy. By your “thinking” Apple’s unreasonable terms should = zero Apple Stores.
Fact; there are 504 Apple Stores worldwide. This shows that Apple’s terms can be considered acceptable by many mall owners.
3. In the history of retail not every store location/construction deal gets done. Apple is not obligated to agree with every landowner’s terms.
4. Apple Stores support the brick & mortar retail model. What company is hurting physical store retail the most? Amazon.