Monday, April 2, 2007

Apple: America's Best Retailer

Fortune Magazine reports that Apple stores average $4,032 per sq. ft. in sales annually. That's more than 4x Best Buy, which generates $930 per sq. ft. annually. With further proof that Steve Jobs is the best product man in the world, here are few lessons from the article:



  • HIRE THE BEST: Steve Jobs recruited Mickey Drexler (The Gap), and Ron Johnson (Target) to help lead the retailing effort.


  • PROTOTYPE: Apple mocked up an entire store in a warehouse to better understand customer buying patterns. They spent 6 months prototyping the first store, only to find out it was wrong. The current arrangement, including product placement and the Genius Bar were products of the prototype.


  • SIMPLIFY: Focus on producing fewer products that consistently beat the competition. The stores reflect the same philosophy, using only glass, stainless steel and wood as interior finishes.


Dell opened a retail store in Dallas last summer, and announced two future stores in New York. The plan for now is to offer a way for customers to ask questions and order equipment, but to have the computers delivered through Dell's traditional build-and-ship system. What a contrast in customer experience!



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