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I'll take the MacBook, hold the macchiato: no coffee in Apple Stores, please
Esquire's Elizabeth Gunnison wrote a speculative piece about cafés in Apple Stores. In short, she thinks it's a great idea. In her piece she writes: Think about it: Apple's retail stores are purpose-built for sucking people in and holding them hostage for hours, what with the rows and rows of shiny new devices, the Genius Bar, and their own roster of educational seminars. Why not add a café? Food and beverage margins are nothing compared to what Apple makes off its iPads and Macbooks, but a café would be just one more way of drawing shoppers toward the mothership and keeping them there. Interestingly enough, Apple itself explored the idea of coffee-centric retail in the 1990s, and then dropped it. It's not hard to understand why: the concept is clever, but it wouldn't work. Apple Stores are sleek and sexy and...noisy. When I go to a café, I want free Wi-Fi, sure, but I also want to hear myself think. Even the most crowded Starbucks in London offers at least one corner that's relatively quiet. And that's because sales people aren't constantly pitching the latest product while customers ask question after question. Apple Stores are sleek, sexy and sterile. Café's are usually the exact opposite. I want the place where I buy my tech to look like a spaceship. I want the place where I buy my coffee and read the paper to be comfy and cozy, not blindingly white. If Apple were to add cafés to its retail stores it would require a big redesign. Sure, it could work in some of the bigger stores in London, New York, and Paris if Apple added a dedicated café -- one that looked like a café, and not a stand that some bored employee set up with his Nespresso machine. But smaller stores, like the one in Northbrook, Illinois, can't gut half of their retail space to sell coffee. As for the idea of cafés as a customer draw...Apple hardly needs that gimmick. It's having no trouble attracting retail customers. In fact, some people just hang out there, despite the lack of coffee. The last thing Apple Stores need are hipster geeks who aren't buying anything sticking around even longer checking their Facebook messages on a 27" iMac while they wait for another refill of their macchiato. Let Apple sell computers; Starbucks can worry about the coffee. [photo adapted from work by Roger Price]
Daily Update for Sept. 2, 2011
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes, which is perfect for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for listening through iTunes, click here. No Flash? Click here to listen.
For the third weekend in a row Apple opening three more stores
This weekend will mark the third time Apple has opened three stores in as many weeks. That's nine new stores in only three weeks -- quite an expansion and, you guessed it, almost a third of the 30 new Apple Stores the company plans to open this quarter. The new stores opening this weekend are all international ones. The three stores all open this Saturday, September 3. The first is the Campania store in Naples, Italy. It's doors open at 10AM and will be the first of Apple's seven Italian stores to open south of Rome. Then at 9:30 AM in Augsburg, Germany the City-Galerie store opens. The City-Galerie store will be Apple's sixth in Germany. Finally at 9:30 AM the Mapleview Centre Apple store will open in Burlington, Ontario, Canada. Mapleview will be Apple's 21st Canadian Store. Last week Apple opened stores in Arkansas and North Carolina in the US and in Sénart in France. [via ifoAppleStore]
Daily Update for August 30, 2011
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top stories of the day in three to five minutes, which is perfect for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for listening through iTunes, click here. No Flash? Click here to listen.
Apple Store climbs in annual retail ranking
Chain Store Age Magazine publishes an annual list of the 100 largest U.S. retail chains. As you'd expect in the rather stodgy retail biz, there were few changes in this year's list except for one company -- Apple. Apple's retail business jumped from 57th place on the list last year to 34th place in 2011. The results are based on 2010 revenues of US$9.82 billion. The top 20 companies on the list are almost exactly the same as they were last year, with a few position swaps here and there. Apple, not unexpectedly considering the rate of new Apple Store openings, was a lone exception. Like Apple, many retailers are looking internationally for opportunities to grow revenues. Some retailers are downsizing or reducing the number of stores; once again, Apple appears to be bucking this trend by upsizing and adding stores. The full survey from Chain Store Age Magazine can be downloaded here for further study.
New Southgate, Florida Apple Store confirmed
The Herald-Tribune is reporting that Apple is planning to bring a retail store to Southgate Mall in Sarasota, Florida, which could open by December. Currently Southgate Mall is going through major renovations, the end of which will bring 30 new stores to the mall. Westfield, who owns the mall, is moving two of its current tenants, LensCrafter and GNC, from the number 14 and 15 spaces in the mall in order to accommodate the new Apple store. When completed the new Southgate Apple Store will be 42-feet wide, with a total square footage of 4,100 feet. As noted by ifoAppleStore, the Southgate Mall store will fill an Apple store in the area of Florida's west coast south of Tampa that has no stores.
Apple reacts to London riots
The ongoing London riots, now in their fourth day, have already caused significant damage across the city. Apple, a tempting target for thieves and vandals during the best of times, has reacted as any prudent and sufficiently cautious high-end retailer should during such a time. The Apple Store in Liverpool has entirely cleared out its inventory, and according to TNW several other stores have followed suit. The Regent Street store has closed early with unconfirmed reports of armed police guards standing by, and many stores have police vans parked directly in front of the stores. Several London-area Apple resellers are also clearing stock from their shelves. We've received several reports of 40 new-in-package iPhone 4 units available for sale on Craigslist, possibly related to the looting. With reports on Twitter indicating that at least one of Sony's London-area stores was looted yesterday, Apple's reaction seems particularly prudent. Its products are obviously a high-profile target for would-be looters, and the fact that its storefronts are almost entirely glass could draw unwelcome attention from the vandals currently wrecking their way across London. So far we have received no credible reports of any looting or vandalism taking place at any of London's Apple Stores, with the possible exception of the Craigslist seller mentioned above. None of our UK correspondents have been directly affected by the rioting yet, and we wish them and all of the UK a speedy return to order.
Apple Stores to open in Italy, Australia, Canada on Saturday
Two more Apple stores will be opening Saturday. The first, as reported by ifoAppleStore.com, is in Florence, Italy's I Gigli. It's the sixth Apple store for the country. Meanwhile, Cheltenham, Victoria in Australia gains an Apple Store in Westfield Southland. This is the 12th store in Australia and the third store in the state of Victoria. Finally, the Apple Store in Waterloo, Ontario's Conestoga Mall, also is set to open Saturday. Waterloo also happens to be the corporate home of RIM.
Apple reportedly hires firm to help replace former retail chief Ron Johnson
Apple has hired recruiting firm Egon Zehnder International to find a replacement for Apple Retail Chief Ron Johnson, who is leaving the company after eleven years to become the president and eventual CEO of J.C. Penney. According to the Wall Street Journal, Apple is intentionally seeking our a replacement from abroad and Egon Zehnder's services were obtained on the orders of none other than Steve Jobs. Egon Zehnder was apparently chosen because Jobs is looking for an executive with retail experience outside the US. Apple has repeatedly said that their international expansion is a driving force in both their profits and sales. Given that China, a country which Apple had virtually no presence in until very recently, seems key to Apple's growth, its likely that Ron Johnson's replacement could very well come from the Asia Pacific territory or someone with extensive knowledge and experience in the territory.
Examining Apple's incredible growth in China
China is the most populous nation on Earth, so anyone who can find a way to market successfully in that country stands to see huge economic gains. Indeed, we've already seen huge contributions to Apple's bottom line from its sales in China, with massive demand for the iPhone and greater retail expansion to come. Demand for Apple's products is now so high in China that fake Apple Stores are springing up in areas not yet serviced by official retail outlets. Writing for Foreign Policy, Christina Larson points out that Apple hasn't always been a sales powerhouse in China. It's only relatively recently that Apple has had any brand identity in China at all; as early as three years ago, Chinese IT workers might regard a MacBook Pro as if it was a particularly small UFO. Today, Apple's devices are permeating the "high end" of Chinese society due largely to Apple's products being marketed as a luxury good in the country. Larson points out that Apple still markets itself as an underdog in the US and other markets (still echoing the "computer for the rest of us" sentiment from the 1980s), but in China the company is instead positioned alongside the likes of Armani, BMW, and Versace. This "luxury" branding goes right alongside a new prosperity among China's elite, and even more than in other parts of the world, Apple products are seen as status symbols in China. There's a darker side to all of this, of course; the bulk of Larson's article describes the often deplorable conditions in Chinese factories. But like many articles on the subject, it conflates and confuses Foxconn with Apple and tries to place the blame for working conditions squarely on Apple despite Foxconn's lengthy list of big-name tech clients. We've critiqued this approach to the subject before, and there's no need to rehash it again. Suffice it to say that Apple is well aware of these issues and is trying to hold its suppliers accountable -- a task that's nowhere near as simple as some commentators would have the public believe. Apple's growth in China is still only in its infancy; the first brick-and-mortar stores opened in 2008, and Apple's online Chinese store has been operating for less than a year. With China's economic future looking far more robust than many other markets, the country is likely to contribute a great deal to Apple's fiscal success from now on.
New Glendale, CA Apple Store to boast unique features
Yesterday we told you that this Saturday will see the opening of Apple's second Glendale, California store -- one that is only 600 feet away from the other Glendale store. If that alone isn't enough to give the first store feelings of inferiority, perhaps the features of the new store will push it over the edge. According to 9to5Mac, the new Glendale store will feature a floating Apple logo suspended in the store's glass front. This is the same treatment New York's Fifth Avenue cube store got. The second Glendale store will also have a massive Genius Bar -- a full fifty seats. In addition, the new store will feature a briefing room for business customers and a few tables dedicated entirely to Startup Sessions. To top it off, at 7000 square feet of retail space, the new Glendale store is Apple's largest store in a mall. Apple is definitely an out with the old, in with the new company. However, at least they decided not to shutter the existing Glendale store. Though it was the second Apple store in the country, I'm sure it's got many years of life left in it. Then again, reports are that it is so busy it could be in business for some time.
Second Glendale, California Apple Store to open Saturday
The second Apple store in Glendale, California will open at 10AM this Saturday -- and it's only 600 feet away from the entrance of the first Glendale store. That makes the two Glendale store the closes Apple stores in the chain, according to ifoAppleStore. Apple's first Glendale store was the second Apple retail store to open and visitors say that it's so packed it's hard to get shopping done, which is probably the reason Apple opened another store so close. ifoAppleStore also offers some other location trivia about Apple stores. After the Glendale stores, the next two closest Apple stores are the Palo Alto and Stanford stores. They're just 3,738 feet apart. New York City, Las Vegas, and Honolulu are the "most packed" cities with Apple stores. All three cities have three stores within a 4.1 mile radius. The state with the most Apple stores is California, with a whopping 19 stores.
Artist rendering of NYC Grand Central Terminal Apple Store
A few days ago we told you that Apple signed a lease to open a retail store in New York's Grand Central Terminal. A few more details have emerged since then. First up are the renderings by the Wall Street Journal as to what the store will look like inside the iconic station. Not too much of a surprise: wooden tables and shiny Macs. However, the store's wall will be all glass so as to not disrupt the architecture of the station itself. In addition to the renderings, the WSJ reports that Apple "paid Charlie Palmer's Metrazur restaurant $5 million to vacate its space on the terminal's east balcony more than eight years before its lease expires." That's something the Metropolitan Transportation Authority officials had no problem with as Metrazur's annual rent was $263,997 and Apple's will be $1.1 million.
Microsoft to open another 75 retail stores
Microsoft is going on a retail binge in hopes of replicating the success of Apple Stores. In the next two to three years the Redmond company plans to open an additional 75 retail stores across America and in other countries as well. As noted by Neowin.net, Microsoft announced the expansion plans today at WPC 2011 and said that after the success of the first eleven stores, which opened over the last two years, the company hopes the rapid growth will help expand the "Microsoft story." Meanwhile, Apple has almost 350 retail locations worldwide since opening the first store ten years ago. While an expansion of Microsoft stores isn't so much of a threat to Apple, it could make other big box electronic retailers -- like Best Buy -- nervous, as customers may prefer to go to an official Microsoft store to purchase their PC.
OS X Lion launch likely next week, new MacBook Air to follow
AppleInsider and 9to5 Mac have both received word that Apple is planning an "overnight" on July 13 in its retail stores. Such retail events usually precede major product launches, with store displays being refreshed and managers being trained on the new products. Following the July 13 store refresh, OS X Lion is expected to be released to the general public on July 14. According to AppleInsider, Apple's retail stores will also be upgrading the RAM in several display units to ensure that Lion demoes smoothly on them. Their source also claims some customers will be invited to come to the Apple Store and download OS X Lion there so they can get on-site coaching on Lion's new features. The sites also claim the long-awaited MacBook Air refresh will take place soon after Lion's release to the general public, possibly as soon as a week later. AppleInsider had previously reported that the new hardware was ready to go some time ago, but Apple decided to freeze new hardware shipments for the time being so all new Macs could ship with OS X Lion pre-installed. OS X Lion will be US$29.99 and exclusively available from the Mac App Store. The current developer-accessible version is GM Seed 1.
Some Apple Store employees unhappy with work conditions
Pleasant decor and friendly employees make most Apple stores seem bright and cheery. Behind the scenes, though, some stores are not as congenial as they seem, according to a report from In These Times. Three Apple employees have come forward with a not-so-happy tale of what it is like to work at an Apple retail store. One worker complains about disparate pay with newly hired workers making more than experienced workers. When a few employees approached management about this issue, they were told "money shouldn't be an issue when you're employed at Apple" and their time at Apple "should be looked at as an experience." Other workers describe Apple's tactic to keep health care costs low by defining full-time employees as those who work 40 hours per week and have open availability to work any day needed. If you have a restricted schedule, you are not considered full-time even if you put in a full 40 hours each week. Part-Timers are offered health benefits but the workers claim these plans are more costly than their full-time counterparts. Work schedules are inflexible and stores are often understaffed during prime hours. The word union was mentioned, but the three employees avoided the word like the plague. The mere mention of it could cost them their job. Even if the workers are unhappy, they are reluctant to band together against Apple. The one exception is Cory Moll, who is working to unionize Apple's 30,000-strong work force starting with the store in which he works. When reading this, keep in mind that these are the experiences of three employees. It is by no means a reflection of every Apple store across the world. There are 29,997 employees whose voices have yet to be heard.
Apple reportedly prepping first Apple Store in Sweden
Apple is planning on opening its first retail store in Sweden, according to Market.se [Google translation]. While Market.se doesn't cite its source, a recent Apple job listing for a Payroll Supervisor in Stockholm lends additional credence to an upcoming Swedish Apple store. Besides the Market.se report and the job listing, there's not a lot known about the Swedish Apple store. It's likely that it will be located in the capitol of Stockholm. Apple does always like having its first store stand out, so it's probable that it will be in a renovated historic or aesthetically pleasing modern building in a high-traffic area. Apple just opened its 325th retail store in Lyons, France and plans to open a total of 40-50 stores in fiscal year 2011, which ends in September.
Apple Store employee moves to create a union
The employee who formed the Apple Retail Workers Union in May has revealed himself to be Cory Moll, a part-time employee at a San Francisco Apple store. Moll told Reuters that he decided to go public with his union stance in order to encourage other like-minded employees to come forward. In order to unionize, a majority of workers need to support the idea before a union can be formed. Moll says there's currently less than 50 percent interest in most of Apple's stores, "...but as people talk about it, we could get close in a couple of stores." Apple confirmed to Reuters that Moll has been an employee for four years. He makes US$14 an hour at the San Francisco store where he works. The San Francisco minimum wage is $9.92 per hour. In addition to a website, Moll has set up a Twitter account and Facebook page to rally others to his cause.
Buy a new Mac now, upgrade to Lion for free
Apple's Mac OS X Lion press release reveals that those who purchase a new Mac on or after June 6, 2011 will be able to receive a free copy of Mac OS X Lion. Apple's Up-To-Date program typically lets customers who buy new Macs within a certain time frame update to the latest OS at a reduced cost, typically US$9.95 for a disc. It appears Apple is eliminating the fee entirely with Lion. From the press release: "The Mac OS X Lion Up-To-Date upgrade is available at no additional charge via the Mac App Store to all customers who purchased a qualifying new Mac system from Apple or an Apple Authorized Reseller on or after June 6, 2011. Users must request their Up-To-Date upgrade within 30 days of purchase of their Mac computer. Customers who purchase a qualifying Mac between June 6, 2011 and the date when Lion is available in the Mac App Store will have 30 days from Lions official release date to make a request." That's good news for anyone who's in the market for a new Mac and either can't (or doesn't want to) wait until Lion is released to make a purchase. [Via MacRumors]
Lyon, France Apple Store is Apple's 325th
As of today, Apple has 325 Apple Stores worldwide. The latest one to open is in Lyon, France. The Lyon store is Apple's seventh store in France and located in the La Part-Dieu shopping mall. The store's location has strategic significance not only because Lyon is the third largest metropolitan area in France, but also because the store is located right by the Lyon Part-Dieu railway station. This prime spot will guarantee a steady flow of potential customers. Apple Retail recently hit its 10th anniversary and the company shows no plans of slowing down as it plans to open a total of 40-50 stores in fiscal year 2011, which ends in September. One of these new stores in Hamburg, Germany was the target of some tomfoolery this weekend. Several Windows fanbois pranked the store by putting a giant Microsoft logo on its construction blackings.
