Apple Stores perform 17 times better than US retail average
New sales data from brick-and-mortar retail outlets reveals that Apple Stores see some 17 times more sales than the national average, and lead all U.S. retail chains in sales per square foot.
Market analytics firm Asymco, drawing from raw data provided by RetailSails, that Apple Stores worldwide smashed the average sales numbers posted by other U.S. chains and raked in $5,626 per square foot in the trailing four quarters ending in August 2011.
According to Asymco's Horace Dediu, the data shows that Apple's performance nearly doubled that of first runner up Tiffany & Co. and was seven times more efficient than the median of the top 20 retailers. The sample size for the findings was 160 American companies, excluding restaurants.
The following benchmarks are derived from sales per unit area:
Annual store sales in the range of $300 per square foot is considered respectable in the US.
The US national average for regional malls is $341.
The average for specialty apparel retailers is $400 per square foot.
The average for jewelers is in the range of $600 per square foot.
The median for the best 20 US retailers is $787/sq. ft.
Not only do Apple Stores lead in sales, but their growth is also at the head of the pack, leading Canadian company lululemon athletica by more than 25 percent. Year-over--year, Apple saw a 70.5% change in sales across the 327 global stores open as of August 2011. It should be noted that lululemon was considered a U.S. retailer in the study because a majority of its stores are located in America.
Apple Stores saw $5,626 (represented incorrectly in left graph), and a 70.5% year-to-year growth in sales. | Source: Asymco
Of the other major electronics retailers in the U.S., only GameStop and Best Buy made the top 20, managing a fifth place and tenth place finish respectively in sales per square foot. The two companies' saw poor growth, however, with the game dealer seeing only a 2.9 percent change while the big-box electronics store went negative, contracting 0.6 percent.
The Apple Store initiative was headed by former exec Ron Johnson, with the first location opening in 2001. Since then, the chain has grown to 363 locations as of January 2012, with flagships in major metropolitan cities around the world.
Furthering its reach to a broader consumer audience, Apple recently unveiled one of the first examples of a so-called store-within-a-store at an Arkansas Walmart. The new concept is akin to Best Buy's model where Apple products are displayed in a physically separate area that mimics a true Apple Store's layout.. Target is expected to open 25 store-within-a-store outlets in 2012 and Harrods of London has also created a similar offering for U.K. consumers.
[ View article on AppleInsider ]
Comments
Guess I have to update my mental database. I've been rattling off 'over $4,000 per square foot' for so long I didn't think about it changing.
I think AI posted a couple of similar articles before.. running out materials?
Why don't you provide them with new material then? How often does Apple announce big, official news? Once every few months? How often does this site update? Several times a day? These sarcastic, condescending criticisms are insanely idiotic. It's a damn rumor/fansite. Do you want them to invent Apple news? Either they post things like this, or nothing at all. Most would prefer the former to the latter. Speaking personally, I check this and other Apple sites everyday, and these stats are new to me.
I think AI posted a couple of similar articles before.. running out materials?
We like it.
Move along.
I think AI posted a couple of similar articles before.. running out materials?
Yeah, maybe we need some more anti-Apple articles instead.
I would really, really, really like to see how those numbers stack up to Microsoft Store's retail dollars per square foot.
Obviously, Microsoft doesn't do enough business or they don't have enough stores to qualify. Either way, Apple has a great product line, they always have product announcements on a quarterly basis and they take of people quickly, plus they do training, set up, etc. What is great is they have an app that lets the customer scan the UPC number and charge their account without waiting to talk to someone. It almost feels were stealing, but we aren't because it charged our credit card... :
The other thing is that the sales people are not on commission, so they are just there to demo, explain the product line and spend time trying to figure out what the best product is rather than just trying to rack up the bill.
The only complaint is they need more stools, more third party products on display to try out. It would be nice to see a complete media server solution with the best software and hardware on display, etc.
And by overpriced, I mean the hardware margins are very high because Apple appears to sell under-powered hardware (e.g., AppleTV, gen 2).
Probably because Apple hardware is so overpriced.
And by overpriced, I mean the hardware margins are very high because Apple appears to sell under-powered hardware (e.g., AppleTV, gen 2).
Ah, see, you weren't supposed to say what I said in my earlier post. That was satire.
Ah, see, you weren't supposed to say what I said in my earlier post. That was satire.
Yes. He walked right into your stupidity trap. Nice catch!
I would really, really, really like to see how those numbers stack up to Microsoft Store's retail dollars per square foot.
I'm sorry. I haven't heard a damn thing about Microsoft's attempt at retail in a loooong time. Do they still have them?
Is it correct to even use plural when referring to them?
I would really, really, really like to see how those numbers stack up to Microsoft Store's retail dollars per square foot.
What about the Google stores?
Yes, the physical Google stores. Where they sell free products.
Same thing with the Apple stores.. Figure out how many items they stock, then divide that by the price of one each of every item, to see what the average price per item is..
How many bags of Dog food do they have to sell at Costco to equal the sale of one Macbook at an Apple store..
I'm not saying anything negative about Apple, but setting a record for sales per square foot when you sell so many expensive things really isn't that great of an accomplishment...
I would really, really, really like to see how those numbers stack up to Microsoft Store's retail dollars per square foot.
Microsoft Stores are subsidized, i.e. running at a loss.
What about the Google stores?
Yes, the physical Google stores. Where they sell free products.
Dude, you can't fool us!
That's not a store. That's a children's playground!
What about the Google stores?
Yes, the physical Google stores. Where they sell free products.
and people buy GOOG?
Probably because Apple hardware is so overpriced.
And by overpriced, I mean the hardware margins are very high because Apple appears to sell under-powered hardware (e.g., AppleTV, gen 2).
How's your Google TV doing?
I'm not saying anything negative about Apple, but setting a record for sales per square foot when you sell so many expensive things really isn't that great of an accomplishment...
You're probably right.
That huge figure is probably just a reflection of 'inflation'.
Sound reasoning!
How's your Google TV doing?
Man, that was good!
I would really, really, really like to see how those numbers stack up to Microsoft Store's retail dollars per square foot.
It's gotta be much less.
While Microsoft Stores sell a lot of their own stuff... Windows, Office and XBox... their big ticket items are from other companies. HP makes most of the money when a Microsoft Store sells an HP computer.
In contrast... every time an Apple store sells a $500 iPad or $1200 Macbook.... all that profit goes directly to Apple.