IN STORE: APPLE REOPENS OUTLETS AROUND THE WORLD
With no end to COVID-19 in sight, Apple is reopening its retail stores around the world, with precautions to protect customers and staffers. Now, we must evaluate what we’ve learned since the start of the pandemic, and question whether the virus will change retail forever.
WELCOME BACK
Though retail has only ever played a small part in Apple’s overall device sales strategy, news that the company would temporarily shutter all of its outlets outside of China on March 13 made it clear that the coronavirus would have a significant impact on the Cupertino giant. And though the handling of the COVID-19 pandemic has varied considerably from country to country, and indeed from state to state in the US, Apple made it clear from the start that its customers were a priority, and by closing stores for the foreseeable future, Apple could do its bit to help reduce the spread of a virus that has changed the way we live immeasurably.
For the first time in history, consumers could no longer walk into their local Apple Store to pick up a new iphone, touch and feel the latest Macbook, or speak to an expert at a Genius Bar. Worse still, those who had sent a device to the store for repair would have to wait to get it back, though the company revised that policy and reopened some outlets for pick-ups only. Speaking at the time of the closures, Tim Cook said that he wanted to “recognize Apple’s family in Greater China. Though the rate of infections has dramatically declined, we know COVID-19’S effects are still being strongly felt.” He added: “I want to express my deep gratitude to our team in China for their determination and spirit. As
of today, all of our stores in Greater China have reopened. I also want to thank our operations team and partners for their remarkable efforts to restore our supply chain. What we’ve learned together has helped us all develop the best practices that are assisting enormously in our global response.”
“One of those lessons is that the most effective way to minimize the risk of the transmission is to reduce density and maximize social distance. As rates of infections continue to grow in other places, we’re taking additional steps to protect our team members and customers,” he added, before confirming that all of the company’s retail stores would be closed temporarily.
Though there’s no denying that Apple’s decision to close its stores quite early into the crisis, days before countries like the US and the UK introduced stay-at-home legislation, was the right thing, analysts predict that the closures would just “nibble” the company’s bottom line because the stores make up such a small percentage of Apple’s overall sales. And the company wasn’t too worried; despite having to cancel its March Special Event, Apple has released several new products during closures, including a new 13-inch Macbook Pro and the long-awaited successor to the iphone SE, which, despite being released during a period of huge political and economic uncertainty, managed to perform better than Apple had originally expected, selling millions.
Since Tim Cook’s original announcement, Apple has been closely monitoring local health data and government guidance to determine a safe and appropriate time for each store’s eventual reopening, and now several locations have
thrown open their doors to the public. And although stores are now reopening at pace in Europe and the United States, months after Apple reopened its stores in China, the company has stressed that consumers should continue to shop online where possible, and only come to an Apple Store for assistance with repairs or to use the Apple Genius Bar.
Earlier in the month, the company began reopening some of its stores in the United States and expects a gradual rollout throughout June until all of its key stores are up and running. In an effort to reduce unnecessary travel and transmission of the virus, the company has also shifted its Today at Apple sessions online, hosted by Apple professionals to boost creativity.
In a recent memo shown to Bloomberg,
Deirdre O’brien, Apple’s senior vice president of people and retail, revealed that Apple was monitoring local conditions on a daily basis and that it would only recommend the reopening of a store if it was safe to do so. Until then, the company would offer Apple Retail staff flexible working arrangements, such as working as an online support agent. Previously, the company promised it would pay staff in full, even if they had to take leave due to COVID-19, but since, it appears its retail arm has been furloughed.
SAFETY FIRST
Though Apple has found success transitioning customers away from its Stores to its website and app, it is clear that the priority is to reopen outlets as soon as it’s safe to do so. Around the world, the company operates 510 stores, with
271 in the United States, and whilst Apple will follow local safety recommendations wherever possible, the firm has issued global guidelines to ensure its retail staff and customers are kept safe and shielded from the virus.
Indeed, customers will be temperature checked before being allowed to enter into the store, though it’s unknown whether these checks will be carried out by Apple staff or a third party, and social distancing will apply in-store, with regular reminders over a tannoy. Apple is also recommending that customers cover their faces before entering into a store, but this varies from country to country (with some like France making masks mandatory in public). To help Apple implement clear social distancing in-store, it will limit the number of people allowed to shop at any one time. There may be a delay for some customers, which is why Apple recommends that customers should shop online for an in-store pick-up or contactless delivery, which will reduce the risk of COVID-19 transmission.
THE FUTURE OF RETAIL
As Apple and indeed every other retailer around the world has proven, customers are mostly happy to shop online. Ecommerce order volume has increased by 50% compared to 2019 as consumers are forced to stay at home, and though there are some limitations and difficulties, the truth is that the world has already adapted to online-first shopping. It’s also true that some malls were already struggling to compete with ecommerce - which can offer a more personalized experience, free shipping, and competitive pricing - and they’ll change
considerably in the months ahead, perhaps never recovering. In the United Kingdom, Intu Properties, which manages the UK’S biggest shopping centers, has warned it could fall into administration due to the coronavirus, and it’s a similar picture around the world. Government bail-outs will help, but the truth is that longterm social distancing measures, a global recession, and falling consumer confidence will result in lower footfall, meaning retailers could go out of business.
Analysts argue that the thing that characterizes the difference between the winners and losers is an emphasis on omnichannel retail shopping. Consumers no longer see the two as exclusive - they want to be able to pick up a product in-store and then shop for it online, and that’s exactly what Apple does with its Apple Stores. Indeed, the company is able to unify the experience across each of its platforms, by welcoming shoppers into brickand-mortar stores to show them how it feels to use their products, allowing them to go home and buy in their own time. Chains like Walmart and Amazon have integration between online and offline, but smaller firms must now line up their supply chains and logistics to offer the same experience.
In the years ahead, we’ll no doubt see shopping continue to move online, which could result in the final nail in the coffin for the high street. Savvy retailers must use technology
- not only ecommerce but innovations that transform in-store shopping experiences - to encourage shoppers to stick around. Think virtual reality shopping, personal assistants, voice shopping, and personalization, not only
for larger organizations but for mom and pop stores as well.
Finally, we must be prepared that retail may never look the same post-crisis. The lessons we learn in the coming months and the way businesses are able to quickly adapt to changing consumer behavior and attitudes, could see a new wave of market leaders, and see some larger organizations fall to the wayside should they fail to keep up. By keeping a clear eye on the science, understanding what consumers expect in these highly uncertain times, and focusing on safety and convenience, retail will be all the better for it; and global players like Apple will no doubt be the market leaders, helping smaller companies adapt their offerings.