Apple's Impact on Retail Real Estate

Changing The Status Quo foot Apple Stores Impact On Retail Apple's business model relies heavily on commercial real estate 13% Sporting more than 300 retail stores in 11 countries. Its retail division claims 30,000 "full time equivalent" employees of Apple's overall sales were due to retail in 2011 Per U.S. Store NYC Fifth Ave Store $34,100,000 $350,000,000 Macy's much larger stores generated $29 million on average in sales last year, and J.C. Penney just $16.1 million The location is 10,000 square feet, putting its sales per square foot at a minimum of $35,000.That's the equivalent of selling one Mercedes-Benz C300 sedan per square foot. Apple achieves 17X times better than avg. Apple achieved seventeen times Best Buy - $831 per square foot better performance than national average of $341 the average US retailer in terms of sales per square foot. Tiffany & Co - $2,974 per square foot Apple - $5,626 per square foot Apple pays a much higher premium for space jcpenney $80 per s/f $4.4 per s/f For a store with 6,000 square feet, Apple would pay as much as $480,000 annually Typically 20 times the size of an average Apple store and pay about $439,000 annually thesquarefeot TheSquareFoot http://www.thesquarefoot.com Source : Wall Street Journal Retailsails.com Changing The Status Quo foot Apple Stores Impact On Retail Apple's business model relies heavily on commercial real estate 13% Sporting more than 300 retail stores in 11 countries. Its retail division claims 30,000 "full time equivalent" employees of Apple's overall sales were due to retail in 2011 Per U.S. Store NYC Fifth Ave Store $34,100,000 $350,000,000 Macy's much larger stores generated $29 million on average in sales last year, and J.C. Penney just $16.1 million The location is 10,000 square feet, putting its sales per square foot at a minimum of $35,000.That's the equivalent of selling one Mercedes-Benz C300 sedan per square foot. Apple achieves 17X times better than avg. Apple achieved seventeen times Best Buy - $831 per square foot better performance than national average of $341 the average US retailer in terms of sales per square foot. Tiffany & Co - $2,974 per square foot Apple - $5,626 per square foot Apple pays a much higher premium for space jcpenney $80 per s/f $4.4 per s/f For a store with 6,000 square feet, Apple would pay as much as $480,000 annually Typically 20 times the size of an average Apple store and pay about $439,000 annually thesquarefeot TheSquareFoot http://www.thesquarefoot.com Source : Wall Street Journal Retailsails.com