Has the Apple Store Lost Its Uniqueness?
While Apple's stores have long been heralded as retail shrines for their sharp design and top-notch service, a recent article in The Wall Street Journal states that they may now be getting hurt by their sameness.
"Just as Apple's products have become ubiquitous, the format of its stores has become commonplace," claimed the WSJ article.
The report followed up on the company's third quarter earnings, which showed that Apple's stores dipped slightly, marking the first decline since 2009. The report also showed that, while sales per square foot were an enviable $4,542, they were down 4.5 percent from $4,754 in the same period a year earlier, according to Customer Growth Partners.
Part of the problem may be a lack of direct leadership. The VP of retail position has been empty since October 2012, when John Browett exited after only a six-month stint.
The article also said weakness may result from the lingering impact of policies put in place by Mr. Browett, who enacted severe cost-cutting measures. These included reducing budgets for employee events, training, offsite meetings and basic supplies. Interactions with customers also shifted from a focus on customer service to driving sales. Staff assigned to educating customers have been moved to the sales floor in between classes, according to the WSJ.
Tim Cook, Apple's CEO who is overseeing the retail business, has been reversing many of these moves.
Still, some indicated that part of the problem is that other stores are becoming good at copying Apple Stores' aesthetics and selling approach.
Craig Johnson, the head of Customer Growth Partners, noted how the Apple Store experience used to surprise guests because it changed so frequently — from its early emphasis on one-on-one education and, later, the use of iPod Touches as cash registers and engagement tools.
"Apple needs to recreate and reinvent its once novel retail model, which is now not so novel," Mr. Johnson said.
In a column earlier this week for The Exchange, Yahoo Finance's blog, Brian Sozzi, an analyst at Belus Capital Advisors, wrote that the stores are also being hurt by a "very methodical, outright slow, new product launch schedule" in the face of innovative new products being rolled out by competitors in the mobile space.
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