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10 years of Apple Stores: a retrospective

Ten years ago, on May 15, 2001, the world got its first look at an Apple retail store as Steve Jobs gave the press a tour of the Tysons Corner Apple Store in McLean, Virginia. Four days later, that store and another in Glendale, California officially opened for business.

Today, over 320 Apple Stores have opened across 11 countries, and that original Glendale store has gained cult status.* Huge "flagship" stores greet shoppers in Chicago, San Francisco, Sydney, New York and Glasgow, among others. There's a store inside Paris' Louvre Museum, and the world's largest Apple Store stands tall (and wide and deep) in London.

To acknowledge Apple's incredible achievement, we've put together this modest retrospective. Enjoy the journey, and share your Apple retail experiences in the comments.

The Beginning

In January of 2000, Apple covertly hired Ron Johnson, a former vice-president of merchandising for Target (and rumored potential Jobs successor) to develop and launch a line of retail stores that would honor Apple's "think different" philosophy. Part of his process was to build a full-scale mock store inside a Cupertino, California warehouse. The first iteration was deemed all wrong, scrapped and replaced with (essentially) the model we see today.

According to AppleInsider, the first 11 stores were opened for US$1.6 million opening costs each (with one exception) and 10-12 year leases.

Grand Opening

Apple Store openings have become crowd-drawing events. Typically, hundreds if not thousands of fans wait for cheering employees to welcome them inside with high-fives and wide smiles. A limited number of commemorative T-shirts are often distributed, with especially fun examples accompanying openings in Boston, Sydney (bondi blue) and Paris, where shirts were packaged inside pyramids.

Unique Features

[Correction appended. –Ed.] The Apple Stores were unique in many respects, but certain features stood out. Early stores had dedicated point-of-sales stations, but Apple abandoned the notion (and the countertop) by launching the iPod-based EasyPay system using a WindowsCE-based EasyPay mobile commerce solution. This allowed customers to pay for their items where ever they happened to be standing. After swiping a credit card and signing the handheld by drawing a signature, customers received their bagged purchase(s) as a receipt was sent home via email. In 2009 the WindowsCE mobile handhelds were replaced with an iPod touch-based version of the EasyPay system; this new setup would eventually attract other retailers, including the Girl Scouts and Old Navy.

The Genius Bar is a prominent feature of every Apple Store. They're staffed by "geniuses," or employees trained in diagnosing and repairing Apple products not deemed "obsolete" (save the occasional SE). Until 2002, Genius Bar customers were offered bottles of Evian water.

The Ginza, Japan Apple Store was the first to introduce a separate iPod Genius Bar to accommodate the huge number of iPod customers requesting help. Similar arrangements later appeared in New York Apple Stores.

In 2007, Mac|Life published a look at life as an Apple Store Genius, noting that the rigorous training process focuses on solving problems, not questions like "How does iDVD work?" (or what to do when a man threatens to shoot his iPhone).

In 2007, Apple let customers make Genius Bar reservations 2 days in advance. Once you're there, follow these steps to for getting prompt, friendly service.

Big Bucks

By 2004, Apple had committed to a reported $386 million in lease payments and spent $359 million on capital expenditures across 22 stores. It was also reported that several of Apple's leases had buy-out options, meaning that Apple could potentially end 10- and 12-year leases early.

Fortunately for Apple, the stores were earning much more than they cost.

In Q1 2011, revenue from Apple stores reached an impressive $9.8 billion, representing 15 percent of the company's total sales. Former Apple executive (and founder of the company that created BeOS) Jean-Louis Gassée called Apple's stores a "...sterling example of everything that can go right in retail: record sales volume per square foot, traffic numbers, profitability, aesthetics (more at Apple's architecture firm: Bohlin Cywinski Jackson) and customer service."

Big Stores

Today, several huge stores wow huge numbers of customers every day. In fact, Apple Stores now welcome more visitors than Major League Baseball stadiums (and earn more, too). The Shanghai store (above) features the largest curved glass panels in the world and more hands-on gadgets to play with than any other Apple Store.

London's Regent Street store welcomed its 10 millionth visitor...four years ago, and New York's 5th Avenue store, with its huge glass cube, has become a tourist destination in its own right.

I've made purchases in a few Apple Stores, and it never gets old. Friendly staff, lots of goodies to play with and an immaculately clean store mean a very pleasant experience. Congratulations to Apple and all of the employees who make Apple Stores so great.

Rumors suggest that Apple is planning something special to celebrate, so keep your eyes peeled if you visit a store next week. Have fun!

*Technically, the McLean store opened first, being on the U.S. East Coast, but the Glendale store has the designation "001."



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Ten years ago, on May 15, 2001, the world got its first look at an Apple retail store as Steve Jobs gave the press a tour of the Tysons...
 

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Hailin

Shanghai stores are not good example of friendly service, comparing to the stores I have been to in the UK.

Aggressive security approach: guard staring at you as soon as you pick up any item, locked macbooks prevent free using;

Genius is only genius at avoiding responsibilities: exactly the same issue happened to my iPhone cable but end up with different---replacement without question in Manchester; but no no from Shanghai.

May 17 2011 at 2:44 AM Report abuse rate up rate down Reply
Deavy

There is a mistake: according to MondayNote, revenue from Apple stores reached $9.8 billion in 2010FY, not Q1 2011.

May 16 2011 at 12:54 PM Report abuse rate up rate down Reply
Flyboybob

The biggest reason the Apple stores are a success is that they treat the customer very well and make shopping a wonderful experience. This has been the mantra of other retailers such as Stanley Marcus of Neiman Marcus fame. When the customer is paying full retail price they should be treated with kid gloves.

My local Apple store has replaced products for me under warrantee without question. They even upgraded an iPod Nano to a Touch without any argument after my son was dissatisfied with the nano. The genius bar is very customer oriented. When my internal hard drive died on my GV iMac, the genius not only diagnosed the problem but suggested that I buy a new and larger drive from another source because they are cheaper. He even showed me how to open up the computer, remove and replace the drive.

May 15 2011 at 8:40 PM Report abuse rate up rate down Reply
SaintStryfe

I've thought that ever since they opened, The Apple Stores are the single biggest reason Apple's exploded. The iPod was important, the iPhone was huge, Mac OS X is necessary, but overall, without the Apple Stores, the products would not have been in the average consumer's radar. They are the most important things in Apple's arsenal.

May 15 2011 at 8:36 PM Report abuse rate up rate down Reply
junkie

I miss the independent stores but at the same time they were pretty crappy and over priced. I always had to warn friends to make sure they got the latest version of a mac because often the indy store would really push the older models to clear out their inventory. That was a mess.

May 15 2011 at 7:00 PM Report abuse rate up rate down Reply
pwsloss

After 10 years, the Apple Store has become a fixture at many sites, and has also developed a recent case of Boutique Arrogance: "Sorry, we have no iPad2's in stock. Come line up at 5am and maybe we'll have something then." That was in response to a query as to whether it was better to order online and wait the 3 weeks, which we did. To Apple's credit, mentioning this attitudinal lapse in their store-satisfaction survey about our online order elicited a direct telephone response and an expression of genuine-sounding concern over the negative customer experience in the retail store.

May 15 2011 at 6:10 PM Report abuse rate up rate down Reply
mrmac

When Apple opened its stores they promised the existing resellers that they would be showcases and no harm would come to the retail channel. As they have continued they have put the independent stores out of business with many questionable practices. So much for the Apple promise.

May 15 2011 at 12:31 PM Report abuse rate up rate down Reply
3 replies to mrmac's comment
Randal

I have a love/hate relationship with the Apple store. I love that they always have what I need, unless it's a major launch but at least they usually have more on hand. What I hate is it's impossible to go inside 99% of the time. And I have the fix for it. Cut the Wifi, it's usually packed to the brim with little kids checking and playing on facebook! If you're under 18 I can guarantee they aren't there to purchase a product or ask for help! They're taking advantage of the store and it doesn't seem to be stopping anytime soon! Damn you! Thanks, I feel better now! :)

May 15 2011 at 12:26 PM Report abuse rate up rate down Reply
1 reply to Randal's comment
Andrew

As you probably already know it helps build the "brand"...

Even if the kids don't buy anything that day they might ask their parents or buy something when they're older.

It's all about getting them familiar while they're still "neutral" enough to try new things :)

May 15 2011 at 1:14 PM Report abuse rate up rate down Reply
Barry Solarczyk

"Friendly staff, lots of goodies to play with and an immaculately clean store mean a very pleasant experience."
When I purchased my newest iMac at our local store in Shadyside (Pittsburgh, PA) along with a new printer and a few other add-ons, the staff actually left the store to help me carry everything to my car in the parking garage down the street!

May 15 2011 at 12:20 PM Report abuse rate up rate down Reply
David Pylyp

Love the stores! Love the hand held point of sale! Love the One on One Lessons;
But you guys leave out so much

We have Huge OUTLETS in Canada Yes Canada the polite country to your north with 38 MILLION PEOPLE that are tech savvy; read your blogs buy your products and use the internet.

It would be wonderful to hear a little; they actually let you over the border to have a look at an incredible, polite culture in Vancouver Toronto or Montreal. The east coast is beautiful and has a vibrant economy.

David Pylyp
Accredited Senior Agent
Living in Toronto

May 15 2011 at 12:13 PM Report abuse rate up rate down Reply
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