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Apple Expands Retail Presence, Plans to Open 40 to 50 New Stores

Strategic Insights

— 2 min read

Apple's retail store in Manhattan is set to open its doors tomorrow, marking the fourth location in the city and 15th in New York. The new store, with an 8,500 square-foot retail space, aims to increase Mac, iPod, and iPhone sales, leveraging the upcoming holiday season. This expansion comes as Apple continues to expand its retail presence globally, with plans to open two new stores in Shanghai, as well as London and Paris, and opening 40 to 50 new larger retail stores next year, half of which are expected to be outside the U.S.

Key Takeaways:

  • Apple's retail store expansion strategy focuses on delivering a high-quality buying experience, emphasizing service and education, and driving demand for its products.
  • The company operates a network of 280 retail stores in 10 countries worldwide, with plans to expand to more international markets.
  • Retail sales increased 4.0% to $6.57 billion in 2009, with store traffic growing to around 170 million in the same year.
  • Apple's business strategy leverages its ability to design and develop its own operating system, hardware, and software applications, providing customers with compelling new products and solutions.
  • To attract customers during the holiday season, Apple will offer gift-wrapping for any iPod or portable Mac for just $5 and allow customers to set aside a gift and pick it up at their local Apple store for free from Dec. 15 to Christmas Eve.
  • Apple's stores hosted 42.7 million visitors in the last quarter, an increase of 7% from the year-ago period, with revenue of $1.87 billion ($7.6 million per store) in the quarter, the highest level ever and up 15% from the year-ago period.
  • Apple plans to offer gift-wrapping as a service for customers purchasing iPods or portable Macs for just $5.
  • The company aims to attract customers during the holiday season with these services and promotions.
  • Quality Systems Inc. (Nasdaq: QSII) reported fiscal second-quarter earnings of 41 cents, beating the Zacks Consensus Estimate by a penny and the year-ago earnings by 4 cents.
  • The company's NextGen Healthcare Information Systems division posted revenue of $67.4 million for the reported quarter, representing a 23% increase from the previous year.

Statistics:

  • Apple's retail stores generate an average of $26 million per store annually.
  • Store traffic grew to around 170 million in 2009.
  • Apple's business strategy leverages its ability to design and develop its own operating system, hardware, and software applications, providing customers with compelling new products and solutions.
  • Apple's stores hosted 42.7 million visitors in the last quarter, an increase of 7% from the year-ago period.
  • Revenue of $1.87 billion ($7.6 million per store) in the quarter, the highest level ever and up 15% from the year-ago period.
  • Quality Systems Inc. (Nasdaq: QSII) reported a 23% increase in revenue for its NextGen Healthcare Information Systems division.
  • The company's earnings beat the Zacks Consensus Estimate by a penny and the year-ago earnings by 4 cents.

Sources:

  • Zacks Equity Research, Apple Opens New Store in New York
  • Zacks Equity Research, Microsoft Corp Announces Opening of its First Retail Store
  • Zacks Equity Research, Apple, Inc. (AAPL) Announced on Nasdaq Stock Market
  • Zacks Equity Research, Quality Systems, Inc. (QSII) Announced on Nasdaq Stock Market
  • Zacks Equity Research, About Zacks Equity Research
  • Zacks Equity Research, About Zacks

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