According to inside sources, Apple plans to overhaul or open 21 new stores in the Asia-Pacific region, focusing on China and Japan.
Apple Store in Shanghai (China). Photo: Bloomberg
Bloomberg reported that Apple plans to expand its retail chain in China and some other Asian markets, while stores in the US and Europe will be renewed.
By 2027, Apple is expected to open 15 new stores in Asia-Pacific, 5 in Europe and the Middle East, 4 in the US and Canada. None of these stores are in Vietnam.
The company also plans to relocate or renovate six stores in Asia, nine in Europe and 13 in North America. In total, 53 Apple stores will be opened, relocated or renovated over the next four years.
First store in Malaysia
Apple's move is aimed at revitalizing its stores after 22 years. The retail chain has struggled with the pandemic, customer service and labor unrest in recent years.
Apple wants to build its brand in emerging markets like India, while also providing a better shopping experience in the US and Europe.
The source highlighted some notable stores in Apple's plan including three stores in India, the first store in Malaysia and an overhaul of a store in Paris (France).
The company also plans to open new stores at Battersea Station, London (UK) and Jing'an Temple Plaza, Shanghai (China).
Apple's plan to expand and overhaul stores around the world by 2027. Photo: Bloomberg
The locations and opening hours are still in the proposal stage, which means things could change in the future. However, most of the stores on the list have already locked down construction sites.
Apple currently has more than 520 stores in 26 countries, more than 50% of which are in the United States. The stores are famous for their large areas and focus on branding rather than sales. However, they are still places that customers go to buy products early, send them for warranty or attend user training workshops.
Apple's retail operations are overseen by Deirdre O'Brien, senior vice president of retail, while store construction and maintenance are overseen by Kristina Raspe, head of global real estate and facilities.
China remains the focus
According to internal documents, Apple operates four types of stores: standard Apple Stores located in shopping malls, Apple Store+ which can be in shopping malls or outdoors, “flagship” stores in key areas with their own designs, and “flagship+” stores with large areas and the highest operating costs.
Standard stores generate more than $40 million in revenue per year, while Apple Store+ generates more than $45 million. Flagship stores generate more than $75 million, while flagship+ generates more than $100 million per year.
Apple's store expansion is focused on the Asia-Pacific region, with 21 new or overhauled locations by 2027.
This market generates $130 billion in revenue for Apple by 2022, with countries like India on the emerging list.
Later this year, Apple will open a new mall store in Wenzhou (China) and upgrade its store in Ninjing East, Shanghai.
The company also plans to open two stores in South Korea, bringing the number of Apple Stores in Samsung's homeland to seven.
By 2024, Apple plans to open its first store in Kuala Lumpur (Malaysia).
Apple Store in Mumbai (India) just opened in April. Photo: Bloomberg
In Shanghai, the company may open a new store in Jing An Temple Plaza, overhaul a location in Shanghai, and open its first store in Foshan.
China accounts for nine of the 21 stores planned for new openings and renovations in Asia-Pacific. Despite worsening US-China relations, Apple remains heavily dependent on the country.
Earlier this year, CEO Tim Cook visited China, emphasizing the close cooperation between the two sides.
Upgrade your experience in the US and Europe
In Europe, Apple plans to open a new store in Battersea, London (UK) in June, followed by a store in La Vaguada shopping mall, Madrid (Spain) and moving a store in the UK.
Last year, Europe brought in more than $95 billion for Apple, or a quarter of its total revenue. The UK is its third-largest retail market, with about 40 stores.
According to Bloomberg, the stores that are being remodeled or relocated are mostly outdated. They are often smaller than other stores, lacking pickup areas or workshop space. Apple’s design style has also changed over the years, from metal accents to wood.
The shopping experience is also a criterion that Apple wants to change. In recent years, customers and Apple Store employees have often complained about service quality, working policies and salaries.
In the US and many other countries, union campaigns have also caused headaches for companies.
Next year, Apple plans to move four stores in the UK, one in France, and open a fourth in Sweden. By 2025, the company plans to open a fifth store in the UAE, located in Al Ain, Abu Dhabi.
In the US and Canada, Apple is focusing on overhauling and relocating stores rather than opening new ones. Of the 18 stores, 13 will be relocated and one will be overhauled. Among them, the store in Birkdale Village, North Carolina, will replace the Charlotte location, which abruptly closed in March after a series of shootings.
According to Zing
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