Donovan's views: Apple Retail -- talk the talk, walk the walk
TweetFollow Us on Twitter

Donovan's views: Apple Retail -- talk the talk, walk the walk

From the re-worked store listing page at Apple, I calculate that retail presence comparing stores opened in the US to those located outside the US are presently a split of 87 percent to 13 percent for the 210 opened stores.

A fifty percent split using today's 210 total calculates to 105 stores to be located outside the US with today's total number of stores. There are at present 183 stores located in the US vs 27 outside the US. That is quite a few short of a balance.

So far this fiscal year there has been 18 new stores opened in the US and 6 outside the US (all in the UK) by my count.

Apple Chief Financial Officer Peter Oppenheimer at the last financial analyst conference call indicated an increase in the number of stores to be opened this fiscal year from 30 to around 45 and acknowledged the emphasis to getting more international stores opened as well. He specifically mentioned China, Switzerland and Australia. Australia was mentioned in the previous year's remarks but no store opened despite the passing of time.

If the opening rate of stores was further increased to 50 stores per year and all of them were to be located outside the US, three years would still not quite enough to reach a 50 percent split (this ignores what happens in the remainder of this fiscal year in openings and assumes none of the opened US stores close up).

That type of lopsided opening strategy would mean a complete change from the past and a whole lot of international based work by Apple Retail that perhaps are not the best to do that kind of work. They have not been really able to accomplish anything like it so far to date. Why? It is hard work. It requires understanding in how to reach success in each new market and culture; and that requires a greater deal of applied patience and flexibility out of Cupertino especially in trying to match the successful pattern and template of store that has been followed so far. The language differences alone makes it harder yet to sign an agreement for premises that may be using French or German or Thai. Then there is the time difference, travel time, and holiday differences.

I calculate that 95 percent of the Apple retail stores operate in areas/markets where the first language is English and that will have to change with any expansion into countries where 100 percent of the population prefer to speak their non-English language. This alone requires more bilingual capabilities in managers and staff just to get a store open for business.

Most American managers working domestically in the US will not be exposed to working life outside the US borders. The few differences in operating between domestic states, as well as the local society and habits are much less than what they encounter when operating between countries and regions.

The European Union web site lists it pages in 22 languages for its 27 member countries. For the last ten years, the goal of a single currency, the Euro, has only been adopted in 15 countries. That means there are another 12 currencies. How many can you count in? Many American managers working in the US may have only have exposure to one language in a greatly unified market with one currency over their entire career and have never had language lessons other than English.

Every air flight out of the airports in Hong Kong and Singapore is an international flight so one does not forget the passport, the visa requirement of where you are landing, the types of currency needed and driving licenses you may need as well as the time to clear the customs check and immigration queue. The announcements at the airports and on the plane will be in at least two languages possibly neither being English. Roman lettering may not be seen any more as non-Roman scripts or characters may be substituted. One is immediately forced to start adapting for the simplest of tasks yet alone finding retail locations and training a staff.

But yet it can be done and business proceeds every single day in these places.

In twenty-five years of living outside the US after being raised a mere 50 miles south of Cupertino for the first twenty four years, I realize the correlation of the lack of international living experience and understanding of differences in markets, society and culture have often led to less than stellar performance by American-based companies (and their managers) operating outside their borders, including those "borders of experience". A much broader set of skills and viewpoints are required for "better" performance in reaching an increased international retail presence (of so many unique and different countries) and Apple is no exception.

Another Ron Johnson and team with the necessary international savvy should be built up as it is required for execution of opening more stores outside the US borders as stated and "hoped for." Peter Oppenheimer and Ron Johnson have talked the talk, so it is time to walk the walk.

Before I wrap up this article, I offer my congratulations to Ron Johnson's retail team on the past quarter's record performance. You have made retail history and that will be noted in every marketing textbook and retail research undertaking in the future. I want to encourage you to repeat the success internationally and build up the team(s) with right set of skills to obtain that international success. If the average revenue per store record of $7.1 million falls back to $4.8 million of last year, so be it. Provided it is still profitable to operate a store and achieve expanded Apple Store retail experiences to local customers who can't get them now, it will be best for the Apple brand and Mac share market long term to have more retail presence in other countries than the just the home market or even a retail record of the greatest revenue per square foot.

Or should we make that into square metre?

How would you approach it?

(Columnist Gaurang Donovan is a “mystery man” who wishes to keep his identify secret for personal and business reasons—Dennis)

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Summon your guild and prepare for war in...
Netmarble is making some pretty big moves with their latest update for Seven Knights Idle Adventure, with a bunch of interesting additions. Two new heroes enter the battle, there are events and bosses abound, and perhaps most interesting, a huge... | Read more »
Make the passage of time your plaything...
While some of us are still waiting for a chance to get our hands on Ash Prime - yes, don’t remind me I could currently buy him this month I’m barely hanging on - Digital Extremes has announced its next anticipated Prime Form for Warframe. Starting... | Read more »
If you can find it and fit through the d...
The holy trinity of amazing company names have come together, to release their equally amazing and adorable mobile game, Hamster Inn. Published by HyperBeard Games, and co-developed by Mum Not Proud and Little Sasquatch Studios, it's time to... | Read more »
Amikin Survival opens for pre-orders on...
Join me on the wonderful trip down the inspiration rabbit hole; much as Palworld seemingly “borrowed” many aspects from the hit Pokemon franchise, it is time for the heavily armed animal survival to also spawn some illegitimate children as Helio... | Read more »
PUBG Mobile teams up with global phenome...
Since launching in 2019, SpyxFamily has exploded to damn near catastrophic popularity, so it was only a matter of time before a mobile game snapped up a collaboration. Enter PUBG Mobile. Until May 12th, players will be able to collect a host of... | Read more »
Embark into the frozen tundra of certain...
Chucklefish, developers of hit action-adventure sandbox game Starbound and owner of one of the cutest logos in gaming, has released their roguelike deck-builder Wildfrost. Created alongside developers Gaziter and Deadpan Games, Wildfrost will... | Read more »
MoreFun Studios has announced Season 4,...
Tension has escalated in the ever-volatile world of Arena Breakout, as your old pal Randall Fisher and bosses Fred and Perrero continue to lob insults and explosives at each other, bringing us to a new phase of warfare. Season 4, Into The Fog of... | Read more »
Top Mobile Game Discounts
Every day, we pick out a curated list of the best mobile discounts on the App Store and post them here. This list won't be comprehensive, but it every game on it is recommended. Feel free to check out the coverage we did on them in the links below... | Read more »
Marvel Future Fight celebrates nine year...
Announced alongside an advertising image I can only assume was aimed squarely at myself with the prominent Deadpool and Odin featured on it, Netmarble has revealed their celebrations for the 9th anniversary of Marvel Future Fight. The Countdown... | Read more »
HoYoFair 2024 prepares to showcase over...
To say Genshin Impact took the world by storm when it was released would be an understatement. However, I think the most surprising part of the launch was just how much further it went than gaming. There have been concerts, art shows, massive... | Read more »

Price Scanner via MacPrices.net

Amazon is offering a $100 discount on every M...
Amazon is offering a $100 instant discount on each configuration of Apple’s new 13″ M3 MacBook Air, in Midnight, this weekend. These are the lowest prices currently available for new 13″ M3 MacBook... Read more
You can save $300-$480 on a 14-inch M3 Pro/Ma...
Apple has 14″ M3 Pro and M3 Max MacBook Pros in stock today and available, Certified Refurbished, starting at $1699 and ranging up to $480 off MSRP. Each model features a new outer case, shipping is... Read more
24-inch M1 iMacs available at Apple starting...
Apple has clearance M1 iMacs available in their Certified Refurbished store starting at $1049 and ranging up to $300 off original MSRP. Each iMac is in like-new condition and comes with Apple’s... Read more
Walmart continues to offer $699 13-inch M1 Ma...
Walmart continues to offer new Apple 13″ M1 MacBook Airs (8GB RAM, 256GB SSD) online for $699, $300 off original MSRP, in Space Gray, Silver, and Gold colors. These are new MacBook for sale by... Read more
B&H has 13-inch M2 MacBook Airs with 16GB...
B&H Photo has 13″ MacBook Airs with M2 CPUs, 16GB of memory, and 256GB of storage in stock and on sale for $1099, $100 off Apple’s MSRP for this configuration. Free 1-2 day delivery is available... Read more
14-inch M3 MacBook Pro with 16GB of RAM avail...
Apple has the 14″ M3 MacBook Pro with 16GB of RAM and 1TB of storage, Certified Refurbished, available for $300 off MSRP. Each MacBook Pro features a new outer case, shipping is free, and an Apple 1-... Read more
Apple M2 Mac minis on sale for up to $150 off...
Amazon has Apple’s M2-powered Mac minis in stock and on sale for $100-$150 off MSRP, each including free delivery: – Mac mini M2/256GB SSD: $499, save $100 – Mac mini M2/512GB SSD: $699, save $100 –... Read more
Amazon is offering a $200 discount on 14-inch...
Amazon has 14-inch M3 MacBook Pros in stock and on sale for $200 off MSRP. Shipping is free. Note that Amazon’s stock tends to come and go: – 14″ M3 MacBook Pro (8GB RAM/512GB SSD): $1399.99, $200... Read more
Sunday Sale: 13-inch M3 MacBook Air for $999,...
Several Apple retailers have the new 13″ MacBook Air with an M3 CPU in stock and on sale today for only $999 in Midnight. These are the lowest prices currently available for new 13″ M3 MacBook Airs... Read more
Multiple Apple retailers are offering 13-inch...
Several Apple retailers have 13″ MacBook Airs with M2 CPUs in stock and on sale this weekend starting at only $849 in Space Gray, Silver, Starlight, and Midnight colors. These are the lowest prices... Read more

Jobs Board

Relationship Banker - *Apple* Valley Financ...
Relationship Banker - Apple Valley Financial Center APPLE VALLEY, Minnesota **Job Description:** At Bank of America, we are guided by a common purpose to help Read more
IN6728 Optometrist- *Apple* Valley, CA- Tar...
Date: Apr 9, 2024 Brand: Target Optical Location: Apple Valley, CA, US, 92308 **Requisition ID:** 824398 At Target Optical, we help people see and look great - and Read more
Medical Assistant - Orthopedics *Apple* Hil...
Medical Assistant - Orthopedics Apple Hill York Location: WellSpan Medical Group, York, PA Schedule: Full Time Sign-On Bonus Eligible Remote/Hybrid Regular Apply Now Read more
*Apple* Systems Administrator - JAMF - Activ...
…**Public Trust/Other Required:** None **Job Family:** Systems Administration **Skills:** Apple Platforms,Computer Servers,Jamf Pro **Experience:** 3 + years of Read more
Liquor Stock Clerk - S. *Apple* St. - Idaho...
Liquor Stock Clerk - S. Apple St. Boise Posting Begin Date: 2023/10/10 Posting End Date: 2024/10/14 Category: Retail Sub Category: Customer Service Work Type: Part Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.