Apple is growing its retail presence
Not long ago, there was some concern that Apple’s new retail store opening plans were slowing down in the face of the slow economy, but those fears were apparently baseless. Apple is back in retail build mode.
The company has announced plans to remodel 100 of its stores this year, adjusting their retail space to provide more room for customer training and the display of products. At the same time, the Cupertino computer giant plans to open 25 new retail stores, including a fourth location in New York City, plus new overseas locations in Paris, Italy and Germany.
Even though over 170 million people visit Apple Stores every year, the company, recorded a 3 percent decline in sales of Apple computers in the most recent quarter. Rather than cut back at the retail level, Apple plans face-lifts for older stores to emphasize customer-service programs in addition to the opening of new stores, according to a USA Today story. Ron Johnson, Apple’s senior vice president of retail operations, says, “We know that a lot of people are cutting back, but we’re doing the opposite. We’re investing in the downturn.”
Their current remodeling plans for existing stores include new display furniture that will allow them to have about twice as much merchandise on display. Apple also plans to devote more space to the Genius Bar area and to user training and education areas. It will be interesting to see how all these functional additions are possible in the same amount of space, and whether or not the stores lose the clean look that has made visits a generally positive experience.
One thing is clear, and that is that Apple is not allowing a bad economy to bog them down. As Mac sales dip a little bit, iPhone sales are soaring, and Apple is obviously not willing to let their foot off the growth throttle. Product diversification is allowing Apple to almost skate through the current recession, with overall sales up and their stock price scaling new heights. Apple is one of the few businesses in the world that looks mostly recession-proof.
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