Apple's flagship Apple Store, Regent Street is the most profitable for it's size in London according to industry research, taking £60 million a year or £2,000 per square foot.
"To make £60 million a year from a shop of Apple's size is absolutely phenomenal. We've known for a while that Apple is far more than just a computing brand, and the latest findings prove it," Neil Saunders, a spokesman for retail analysis agency Verdict told The Evening Standard.
"Apple's Regent Street store has extremely strong footfall, since it has become a tourist attraction in its own right, and as it stocks its own products, it controls the price, helping it to boost profit. Shoppers pay a premium for the Apple brand, and there is never discounting, so customers don't waver over buying elsewhere."
If the figures are correct, and it's not clear if this is turnover or profit, the Apple Store could be more profitable than many well known London stores. According to The Evening Standard, analysts estimate that Harrods is making £751 per square foot, while Topshop in Oxford Circus takes about £1,000 per square foot. Rival electrical retailers average about £722 per square foot the newspaper claims.
The Apple Store, Regent Street offers computers, iPods, iPhones, accessories and for many free Internet accesses and gadget fiddling, across 28,000 square feet over two floors.
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Comments received
Crooked Accountant said on Fri, 28 Aug 2009
Tim - is this £60m turnover or profit? If it is turnover, then we have no idea about whether or not it is profitable.
Crooked Accountant said on Fri, 28 Aug 2009
Tim - is this £60m turnover or profit? If it is turnover, then we have no idea about whether or not it is profitable.
DBX said on Fri, 28 Aug 2009
Even with Regent Street rents, you'd have to be extremely careless not to make a profit on upwards of £2,000 a square foot in gross revenue.
In any case, £2,000 per square foot is an exceptional number for annual gross turnover, a number that is not even close to achieved in even the most expensive New York, Los Angeles and Las Vegas shopping centers, the ones that are occupied by Louis Vuitton and Armani and Chanel.
As a side bar, however, I don't think it would be impossible for Apple to achieve this number as PROFIT, not just turnover. Bloomberg News quoted a New York mall executive the other day estimating that Apple grossing $35,000 a square foot at their Fifth Avenue location in New York, which is just over one-third the size of Regent Street but appears to be the highest revenue location in the chain at around $350 million gross (just over £200 million).
London said on Fri, 28 Aug 2009
And the first idiot to post 'it's because their gear is expensive' is...
KenC said on Sun, 30 Aug 2009
These are sales numbers. In the UK, there's always confusion between sales, aka turnover, and profits. Why? Got me. I see it happen all the time.
Dragonfly said on Tue, 01 Sep 2009
Taking £60,000,000 a year and Making £60,000,000 a year are two different things.
Also Selling an Apple product provides profit to both Apple and the retailer. If the report is that they 'Made' £60 million is that just profit from the store's margins or overall profit to Apple ?
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