Apple retail stores have lost their luster and appeal, critics say
Apple is not just a giant of technology, it has also grown into one of the biggest American retailers, with more than 500 stores across five continents. But the shine of its signature stores has dimmed, and the shops are facing a pivotal moment — even before Apple announced last week that its retail chief will soon depart.
Industry analysts say the same product woes and slowed upgrade cycle that have led to Apple’s declining sales are reflected in the waning perception of the stores themselves — with a focus on iterations of marquee products that no longer dazzle and lack immersive, loyalty-inspiring experiences.
After five years of leadstores, ing Apple’s retail efforts, Angela Ahrendts is departing “for new personal and professional pursuits,” the company said in a news release Tuesday. When Apple hired Ahrendts away from the luxury fashion company Burberry in 2014, it highlighted just how important its stores had become. Ahrendts is one of five women in top leadership positions at the company, and an executive who some saw as a potential successor to CEO Tim Cook. Once Ahrendt leaves in April, Apple’s head of HR, Deirdre O’brien, will take over the management of its retail and online in addition to overseeing the company’s people and recruitment.
Apple declined to comment for this story.
Part of Ahrendts’ mission was to transform the consumer experience of visiting an Apple store, which remains a huge driver of sales and a potent marketing vehicle for users to feel as though they are a part of a premium brand, said Daniel Ives, an analyst at Wedbush Securities. But recent product launches and store events have been underwhelming, he said, mirroring the company’s overall challenge of offering customers innovative gadgets when the bar has already been set quite high.
“Apple has beautiful products, but that’s all you see,” said Ross Gerber, president and CEO of Gerber Kawasaki, a wealth and investment management firm based in Santa Monica, Calif. “Do I really need five tables of the same watch and every different band?”
Gerber pointed to Apple’s growing services business — which includes icloud, Apple Music and Apple Pay — and questioned why more of its stores are not dedicated to immersive experiences and converting Apple’s massive 900 million iphone users into monthly subscribers.
In its latest earnings report, Apple said its online and retail stores are generating strong sales for the Mac and ipad, are posting record figures in the number of iphones being traded in for newer models and are driving substantial growth in paid digital services.