Filed under: Retail
Apple Store 5th Ave continues to defy gravity, macroeconomics
While the entire retail sector is in the doldrums of recession and reduced consumer demand, there's a shiny spot in midtown NYC with a big glass cube sitting on top of it. Apple's 5th Avenue store should replace that glowing Apple with a big ol' dollar sign, according to a report from Bloomberg News.The story says that while overall retail sales in New York have fallen between 8 and 10% since 2008, and US retail sales for the first half of 2009 are down 9.2% from the same six months of 2008, Apple's retail operations are still holding steady.
In particular, the 5th Avenue store stands out; while Apple did not release store-by-store numbers, Bloomberg quoted an estimate of about $350 million in annual sales; that's $35K per square foot of the 10,000-sf store. By comparison, high-end jeweler Tiffany & Co. does only about $18K per square foot. That $350M number is lower than the New York Post's $440M estimate, but still astonishingly good business.
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Reader Comments (Page 1 of 1)
W. Park said 9:39PM on 8-24-2009
It is remarkably reminiscent of religious architecture, and entering either by the elevator or the spiral stairs into the store below puts you in the mood to buy stuff. Stuff that works.
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Doctor said 9:48PM on 8-24-2009
I frequently visit the Mall of America (Twin Cities, Minnesota -- more specifically, Bloomington). The Apple Store in the MoA was completely redesigned this summer, and is consistently packed. Say what you will about the popularity of Netbooks, the effect of the "Bargain Hunter Ads" by Microsoft, and so on. I'm convinced (as a Mac convert last October, via iPhone via iPod 5G) that the popularity and interest in Apple products is only stronger in this economy and market. As a former devoted Windows user, OSX is a more friendly interface, particularly if you're new to computing (Windows users have a learning curve...typically things are less complex to accomplish than you expect them to be).
Viva manzana!
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Eddy120876 said 1:13AM on 8-25-2009
I do agree the place is ALWAYS PACKED. No matter what day of the week you pick is always packed. I remember going last year during the 4th of july. Soon to be father in law,GF and me went to check on the new Ipods and man I felt bad for my soon to be father in law. He was freaking out from seen so many people in one place(hes from NC) and all he could say is"wow how can so many people come to one store at the same time. I do love the fact that you go into any apple store and you can spend hours upon hours using their product without having a sales person hovering around you or bothering you to leave the premises after spending hours and not buying anything. Oh and before anybody says anything. Yes I had purchase several Apple products and they all are still working. From my old G3(still use my 3g) all the way to my ipod touch
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ywamer said 8:39AM on 8-25-2009
I was on the road and passing through Cleveland and decided to stop in and visit the Apple store. It was packed at 1pm on a weekday. Packed I tell you. Freakishly packed. So much so that my wife and I were trying to figure out why. Was it a holiday? Are Ohioans just Apple nuts? Or is Apple miraculously recession proof? It was bizarre. And left me kicking myself for not buying Apple stock when it tanked last October.
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c said 10:40AM on 8-25-2009
First you have to remember that this store is open 24 hours. Second if you ever went into the store - any time of day or night - Americans are not really shopping there - they are the morons sponging the free wifi. The people shopping there are anyone who isn't from the USA - Europeans, Asians, etc... Their money buys more here and the apple products are cheaper here than overseas.. so fortunately for apple it's the Europeans and Asians keeping this store afloat and not Americans. And to compare this store to Tiffany is ludicrous - Tiffany has SIGNIFICANTLY more expensive items throughout the store than apple will ever have so - pardon the pun - it's comparing apples to oranges.
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Santa said 11:18AM on 8-25-2009
"C": You must've got up on the wrong side this morning, maybe every morning?
What exactly is wrong with tourist dollars? I am sure the Apple accountants don't care?
If only GM had had more foreign sales, or Ford on Chrysler.
And when were you at Tiffany's last? Were watching the "Breakfast movie" again?
Now it's wrong for Apple users to use Apple provided Wi-Fi, perhaps using Apple equipment bought from Apple stores somewhere? I am sure that you go to Starbuck's, using a Starbuck's Latte? Border's with a Border's book, maybe?
What actually were you doing at an Apple store, anyway? Shouldn't you be lining up for the soon to be Microsoft store? Don't worry, It'll happen, soon, with the Walmart cast-away at the helm. Just you wait, C. Back to bed with you. Dream of Windows.
Tom Castle said 2:30PM on 8-25-2009
C: Er, what? How do morons sponging free WiFi spend a third of a billion dollars a year in one store? Quite obviously, they are buying lots of things. Second, Apple stores do well almost everywhere, not just in New York. Third, you are correct that it's apples and oranges to compare diamonds to consumer electronics. You'd expect diamonds to produce higher revenue per foot than MP3 players and personal computers. Kind of the opposite of what you intended, I think.
Larry said 9:23AM on 9-06-2009
You are a fool ! You say that Americans are spongeing of of free WIFI . First Big fucking deal Yes I have been to that store at 3:00 am on a Sunday morning , and did not buy anything . But I did learn alot so when I went to the store near my house, I knew what I wanted. AND Bought it . Hell I bought 2 Imacs if you must know . AS for tourists spending money in the store ! WHY THE HELL NOT ? Don't we spend money when we travel abroad ? And why is that so terriable ?
If it brings Money to our economy we should complain ? Are you one of those asswholes that voted for Obama? And think that PROFIT BAD ! I am not trying to offened anyone but this guy is a fool . Thank You