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One could look at Apple and it’s retail stores of the exact phenomenon that is making retail stores important again with the caveat of the stores must significa

One could look at Apple and it’s retail stores of the exact phenomenon that is making retail stores important again with the caveat of the stores must significantly differentiate itself on some basis relative to competitors Stratechery has a great write up in this (albeit a few years old, it’s still largely applicable) It’s that last example that resonates when talking about retail especially. To buy a designer bag is an event: you’re greeted at the door, given a drink, have an attendant on hand at all times (who will model the bag for you, if need be); if you purchase it’s almost like a ceremony, complete with special packaging, congratulations (for them taking your money!), and perhaps a follow-up call a day or two later. Obviously given its scale an Apple Store isn’t quite the same, but it’s in the ballpark, especially relative to the buying experience for most electronics. Moreover, it’s the after-sale experience that is arguably the best part: you’re given help setting up your new device, transferring files, invited to classes to learn how to use your purchase, and assured that a genius is ready-and-waiting to take care of any problems that arise https://stratechery.com/2014/apple-stores-innovators-dilemma/ https://stratechery.com/2014/apple-stores-innovators-dilemma...

scarface74 8y ago
Apple isn’t selling low margin products and while its stores are very profitable, it has never been solely focused on profit and loss. It is almost a marketing tool. Tim Cook fired one chief of retail store operations within six months after he realized that the guy didn’t get that.
- mprev 8y ago
  As an aside, that was a startling hire in the first place. Curry’s electronics stores, at the time, were the polar opposite of the Apple Store experience.
  - Marazan 8y ago
    John Gruber trying to convince himself at the time it was a great hire was hilarious. A completely inexplicable decision.
    - kovek 8y ago
      Where do we hear about these stories? Did people interview Gruber and were these interviews published? Was it on the news?
      - scarface74 8y ago
        https://www.cultofmac.com/198726/why-scott-forstall-and-john-browett-got-fired-from-apple-today/ https://www.cultofmac.com/198726/why-scott-forstall-and-john...
      - SyneRyder 8y ago
        I think they're referring to Gruber's blog on the hiring at the time (and maybe his podcast & Twitter, but that's harder to search): https://daringfireball.net/linked/2012/01/31/browett https://daringfireball.net/linked/2012/01/31/browett "You don’t see many executives trading up from CEO of one company to senior vice president of another. That Browett is from Europe is a pretty good signal that international expansion is a top priority for Apple retail." He was already hedging his bets a couple of days later, though: https://daringfireball.net/linked/2012/02/02/dixons-sucks https://daringfireball.net/linked/2012/02/02/dixons-sucks "I'm not implying that Browett was hired to or intends to Dixons-ify the Apple Store experience — just pointing out that it’s a curious hire, also given how rarely Apple hires executives from outside the company."
        scarface74 8y ago
        The first quote wasn’t really complimenting Browett. It was more of a statement that for someone to take a “demotion” from being a CEO to VP says a lot about the Apple store.
- no_wizard 8y ago
  The key take away I found is really not about margin but experience. If you lack true differentiation you will die a quick death in retail (this is more true of brick and mortar outlets thanks to internet competition being incredibly fierce) High or low Margin is almost irrelevant to the point: if you’re a commodity trying to sell as a non commodity you will fail. Quick observation: a lot if not most businesses tend to be commodities (e.g. they lack real differentiation from their competitors)
  - tonyedgecombe 8y ago
    I think you are right, Ikea is an example of a low margin high volume business that seems to get it right.
slededit 8y ago
The Apple Store is nothing like that. You go in to buy, but the person that says hello can't sell you anything. Instead you must wait 5+ minutes for someone to come by and allow you to purchase. No drinks are provided. This person is not that knowledgeable about the product. And can't answer any detailed questions. If you want a Mac mini you'll have to insist that it does in fact exist. Also your product will not be bespoke. For that you must order online. Only plane vanilla is allowed to be sold at the stores - so no extra RAM or disk space for you. If you would like someone to help you learn your new machine you can come back next week for an "appointment". This appointment is used in the doctor sense where it's actually expected you'll wait another 10-15 minutes until you see someone who can help. Every time I go it's an excercise in frustration. But I'm impatient and want it now.

scarface74 8y ago

Apple isn’t selling low margin products and while its stores are very profitable, it has never been solely focused on profit and loss. It is almost a marketing tool. Tim Cook fired one chief of retail store operations within six months after he realized that the guy didn’t get that.

mprev 8y ago
As an aside, that was a startling hire in the first place. Curry’s electronics stores, at the time, were the polar opposite of the Apple Store experience.
- Marazan 8y ago
  John Gruber trying to convince himself at the time it was a great hire was hilarious. A completely inexplicable decision.
  - kovek 8y ago
    Where do we hear about these stories? Did people interview Gruber and were these interviews published? Was it on the news?
    - scarface74 8y ago
      https://www.cultofmac.com/198726/why-scott-forstall-and-john-browett-got-fired-from-apple-today/ https://www.cultofmac.com/198726/why-scott-forstall-and-john...
    - SyneRyder 8y ago
      I think they're referring to Gruber's blog on the hiring at the time (and maybe his podcast & Twitter, but that's harder to search): https://daringfireball.net/linked/2012/01/31/browett https://daringfireball.net/linked/2012/01/31/browett "You don’t see many executives trading up from CEO of one company to senior vice president of another. That Browett is from Europe is a pretty good signal that international expansion is a top priority for Apple retail." He was already hedging his bets a couple of days later, though: https://daringfireball.net/linked/2012/02/02/dixons-sucks https://daringfireball.net/linked/2012/02/02/dixons-sucks "I'm not implying that Browett was hired to or intends to Dixons-ify the Apple Store experience — just pointing out that it’s a curious hire, also given how rarely Apple hires executives from outside the company."
      - scarface74 8y ago
        The first quote wasn’t really complimenting Browett. It was more of a statement that for someone to take a “demotion” from being a CEO to VP says a lot about the Apple store.
no_wizard 8y ago
The key take away I found is really not about margin but experience. If you lack true differentiation you will die a quick death in retail (this is more true of brick and mortar outlets thanks to internet competition being incredibly fierce) High or low Margin is almost irrelevant to the point: if you’re a commodity trying to sell as a non commodity you will fail. Quick observation: a lot if not most businesses tend to be commodities (e.g. they lack real differentiation from their competitors)
- tonyedgecombe 8y ago
  I think you are right, Ikea is an example of a low margin high volume business that seems to get it right.

slededit 8y ago

The Apple Store is nothing like that. You go in to buy, but the person that says hello can't sell you anything. Instead you must wait 5+ minutes for someone to come by and allow you to purchase. No drinks are provided. This person is not that knowledgeable about the product. And can't answer any detailed questions. If you want a Mac mini you'll have to insist that it does in fact exist. Also your product will not be bespoke. For that you must order online. Only plane vanilla is allowed to be sold at the stores - so no extra RAM or disk space for you. If you would like someone to help you learn your new machine you can come back next week for an "appointment". This appointment is used in the doctor sense where it's actually expected you'll wait another 10-15 minutes until you see someone who can help. Every time I go it's an excercise in frustration. But I'm impatient and want it now.