“Apple has this incredibly loyal following and the Apple Store is part of that,” he added. “It’s good for the streets of Georgetown and good for the other merchants,” he said. ![]() The presence of the Apple Store itself, Sternlieb says, boosts fellow retailers on the block. “We’ve got a huge Millennial population, high income population within walking distance, along with two universities, Georgetown and George Washington University, with 30,000 students between them,” he said. The reason? Location, location, location, says Sternlieb. “They paid far more on a per-square-foot basis than any other property in the neighborhood.” (Apple’s Leahy wouldn't confirm that.) Instead of leasing the store, however, Apple bought the building outright, Sternlieb says. The Apple Store on tony Wisconsin Avenue in D.C.’s upscale Georgetown neighborhood opened in June 2010. “That’s an enormous advantage for a municipality,” says Mallory. With a state and local sales tax average of 7.25%, that works out to about $3.6 million a year in sales tax revenue. On average, an Apple Store generates about $50 million in sales a year. Indeed, Apple Stores aren’t just a cash register for the company, they’re tremendous sale tax generators as well. “It’s unbelievable what they generate in sales taxes. “You have to make your best pitch and if you’re a city or municipality you’re lucky to get them,” said Mallory. “They do their demographics and economic research and look to where they want to be.” “Apple is very, very private on where it plans to locate next,” he said. Joe Sternlieb, who heads the Georgetown Business Improvement District in Washington, D.C., says when it comes to cities and shopping outlets landing an Apple Store, you don’t call them, they call you. The problem, for retail districts looking for a rebound: Apple doesn’t appear to have much interest in being a pioneer in “emerging” neighborhoods. Apple says construction of its retail stores also created about 20,000 building trades-related jobs since 2001.Īpple has never had to close a store due to poor sales, only for remodeling or to move to a larger location, according to Nick Leahy, an Apple spokesman. About 46,200 people work in the stores, Apple says in its 10-K filing, up from 42,800 a year ago. There are 259 stores in the U.S., with 178 abroad, up from 162 a year ago, Apple said in its 10-K filing. The 437 Apple Stores (up from 416 a year ago) are huge by retail standards, more than 10,500 square feet, on average. Apple Stores account for about 12% of Apple’s total net sales, the company said.īut Apple Stores can also have an impact on the local employment scene. Apple Stores rung up $21.4 billion in sales for the fiscal year ending September 27, 2014, up from $20.2 billion a year earlier, according to their 10-K filing with the Securities and Exchange Commission. The Apple Store itself continues to be an unquestioned success. As such, Apple typically negotiates rents as low as just 2% of its sales-per-square-foot, compared with other mall tenants, who pay as much as 15%. Green Street Advisors, a real-estate research firm, told The Wall Street Journal that Apple Stores draw so many customers that they typically lift sales for nearby merchants by as much as 10%. “There’s nobody in the retail universe that does the amount of sales-per-square foot they do.” ![]() ![]() “Apple is one of the most desired tenants in the retail universe,” he said. 5 things the apple watch can help you withĮric Mallory of Eureka! Ventures in Carmel, Indiana, which develops shopping centers, says an Apple Store is a must-have for any retail development or city.
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