It is indisputable that the retail world will never be exactly the same as it was before the pandemic. However, with over 500 retail stores, Apple Inc. has decided to expand its retail operations and open additional stores. Scott Galloway, NYU-Stern School of Business Clinical Professor of Marketing, has been quoted as saying, “e-commerce companies are either going to open stores or go out of business. Stores Are the New Black.”On the heels of Google’s announcement to open its first brick-and-mortar store, CEO Tim Cook has strong faith in the benefits of their physical stores, as it allows customers to “touch and feel” the products that are impossible online and ask questions – a sentiment shared by many. Luxury giant LVMH’s CFO, Jean Jacques Guiony, stated in a recent CNBC interview, “We see the future being two things: being mostly retail stores, because the client experience in a retail store cannot be matched easily online.”
Apple will continue to work towards a more diversified source of revenue to maintain and improve stability. With Apple Music generating over $4.1 billion and having a growth of over 46% from 2019 to 2020, the benefits of diversification are abundantly clear. In addition, Apple plans to launch an in-store initiative called “Creative Studios” – a career-building program that aims to mentor young people in underrepresented communities, teaching them about the industry, making music, photos, and films. The program will help bring a broader range of people into their stores, allowing Apple to be in touch with more consumers and continue to grow.
Apple is taking advantage of this time, where the value of retail stores is being questioned, and they are betting on themselves to succeed.
Source: Reuters – JUNE 24, 2021, Apple Music Revenue
Photo Credit: Apple Inc. Newsroom
