Friday, January 25, 2013

Apple Retail Stores By The Numbers

It seems the halo around Apple has dimmed significantly of late, as reflected by the nearly 38% dive the stock price has taken since hitting an all-time high above $700/share back in September.

Unfortunately, the company is up against the law of large numbers, as Microsoft found out over a decade ago - consider this: Apple's latest quarterly revenue of $54.5 billion is larger than the $46.0 billion Google earned for the entire year in 2012.

Bloomberg notes that Apple's profit of $40+ billion in calendar year 2012 is the highest in American history except for Exxon, and "Since 2003, the first year in which Amazon earned a profit, through the end of 2011, Amazon has reported a total of $5 billion in earnings" Yet both Amazon and Google's stock prices are at or near all-time highs.

Let's just focus on Apple's retail stores, though. For the calendar year 2012, Apple Store sales were $19.15 billion - that's bigger than JC Penney and Kohl's, both of which have over 1,1100 stores to just 400 for Apple, and represents a 40.7% 3-year compound annual growth rate.

Sales per square foot for the year declined 12% to $5,176, but the figure is still more than 60% higher than its closest rival (Tiffany & Co.) and by far the highest of any American retailer. Though partly due to slower sales growth - only 16.8% in 2012 following growth of 40.4% and 69.7% in the prior 2 years - it also reflects the fact that average store size has increased to over 10,500 square feet from from 7,500 square feet 3 years ago.

And consider this: Apple's Fifth Ave store in New York City generates $500 million in annual sales, for an incredible $25,000 in sales per square foot.
  • By comparison, Tiffany's flagship store (which is more than double the size of the Apple Store) generates $300 million in annual sales, for sales per square foot of $6,600.
  • Bergdorf Goodman (which is more than 15 times the size of the Apple Store) generates $545 million in annual sales, for sales per square foot of $1,700.
  • Saks 5th Ave flagship store (which is more than 32 times the size of the Apple Store) generates $660 million in annual sales, for sales per square foot of $1,000.
Overall, for calendar year 2013, the average Apple store generated $51.1 million in sales, or nearly $1 million in sales per week; and stores drew 383 million visitors, for an average of over 1 million visitors per store, or more than 19,600 visitors per store every week.


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