Apple Stores Are So Popular They Lift Shopping Centre Sales By 10%

Apple Stores Are So Popular They Lift Mall Sales By 10 Per cent

Damn, the Genius Bar is a bona fide shopping centre hotspot. People love Apple's sterile, glassy retail stores so much, the expensive gadget hubs boost sales at shopping centres by 10 per cent.

The Wall Street Journal talked to real estate experts about Apple's outsized influence on American shopping centres, and it's remarkable. In some shopping centres in New England, that figure is closer to one third of sales. This means Apple's impact on most shopping centres is far more similar to how a large department store increases traffic than a normal retailer. People drop more money in those sleek gadget cubes than they do at far larger and more expansive stores.

Apple is leveraging its success by negotiating dirt cheap rental fees in comparison to its sales. The high sales volume can end up spiking rentals for neighbouring businesses, so much that other stores ask that Apple be excluded when property owners are calculating how much rental space is worth.

The crazy part is, Apple's stores aren't the company's largest source of revenue. All 450 worldwide stores only account for 12 per cent of the tech giant's annual sales revenue. This is an extremely lucrative side hustle that makes J. Crew look like a preppy slacker. [Wall Street Journal]

Picture: Shutterstock/1000 Words

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Comments

    It is and I don't think anyone would disagree, a magnificent achievement for any company to get their customers to buy overpriced goods even if they do 'just work'

    oh hang on

    *Stares at Telstra

    The reason this looks good for Apple is the atrocious effort other tech companies are putting forward. All the rest are either too corporate, or too techie. Or in the case of Google, just clueless about retail.

      I think it really comes down to how friendly the Apple store is. They have plenty of staff who approach you straight away, answer questions and try to bend over backwards for you. They don't try to over complicate the sales pitch

      Yeah the products are rubbish but they know how to treat a retail customer right the first time they see you.

    There's an apple store on Flinders St. Melbourne and it's always pretty empty. I don't think it's helping any of the stores around it.

      To be fair, the article title is about those Apple stores in shopping centres, not out on the main road. Flinders St and its surrounding area is a bit of a hole anyway.

      That's not an Apple store, that's a "mymac" store, they're an Apple reseller. I'd be very surprised if Apple were ever to put a store in such a grotty stretch.

      Check out the store in Chadstone, gives you a pretty good idea of the experience.

      Last edited 13/03/15 11:59 am

    The fact is that the mass consumer wants a product that looks good, is simple to use and simple to fix when something goes wrong. Apple are ticking all of these boxes extraordinarily well via their retail network.

    This is why they can over charge for sub par hardware.

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