Apple's Retail Stores Have the Highest Sales Per Square Foot in the U.S.
According to RetailSails, a firm that tracks the U.S. consumer and retail industries, Apple’s retail stores are the most profitable stores per square foot out of any other U.S. retailers. As a matter of fact, Apple stores have over twice the sales per square foot to the next closest on the list, which is Tiffany & Co.
The RetailSails 2012 Chain Store Productivity Guide profiled 189 companies in the U.S. which operated retail stores and compiled their results by measuring the trailing 12 months and 5 years of historical sales by channel, brand and region. Apple stores ended up coming out on top with $6,050 of sales for every square foot of retail space. Tiffany and Co was next in line with $3,017 of sales for every square foot of retail space (which is over 50% less than Apple). In third place was Lululemon atheletica stores with $1,936 of sales for every square foot of retail space.
Last year, RetailSails mentioned that Apple earned a little over $5,600 per square foot. This clearly shows that Apple’s sales have increased by quite a bit. Besides having the obvious financial impact of selling more product per square foot, sales by area can also have a noticeable effect of how much a company pays for rent. Many shopping districts and malls decide how much to charge a company for leasing the retail space, in part, due to sales. This means increased sales per square foot can lead to higher rents. This of course also varies based on location and given Apple’s retail cloud, it’s safe to assume that the company wouldn’t be locked down to rent based on square footage alone.
Still, the statistics are quite impressive to hear and at the same time, not much of a surprise based on how well sales have been going for the Cupertino California company along with the strong demand for its products.