Retailers have even more reason to be envious of Apple.
Retailers have long coveted Apple s sales per square foot, the best in the industry by a long shot. What s more, the Wall Street Journal has revealed that Apple often pays far less for retail space than its rivals at the mall.
Apple s strong traffic boosts sales at the rest of the mall, giving the company leverage as it negotiates deals for space. Whereas the average mall tenant pays up to 15 percent of sales per square foot for rent, Apple spends no more than 2 percent, according to the Journal.
While Apple helps malls bottom lines overall, its shoppers don t always proceed to neighboring stores. That deals an extra blow to retailers who may be paying more in rent than they otherwise would due to Apple s sweetheart deals.
There are a lot of people who go to Apple and leave, DJ Busch, a senior analyst at Green Street, told the Journal. Apple doesn t promote cross shopping as much as healthy department stores do.
An Apple spokesman declined to comment.
The insight into Apple s real estate prowess comes as the company is preparing to give the Apple Store a face lift. While Apple has divulged few details about its plans, the company will have to retool its stores to make way for the Apple Watch, its first new product since the iPad.
Hailed as Apple s most personal gadget ever, the Apple Watch comes in two sizes and three collections ranges in price from $349 to $17,000. That ll likely throw a curve ball to Apple Store employees, who are accustomed to dealing with products like the iPhone and iPad that offer few opportunities for customization.
But Customer Growth Partners President Craig Johnson told the Mercury News last fall that he thinks change will be good for the Apple Store. The company s sales per square foot aren t what they once were, standing at $4,589 in fiscal year 2014, down 23 percent from the $5,971 per square foot logged in 2012, according to Customer Growth Partners.
If they need to have a new section for the Apple Watch, that s not a problem, that s an opportunity, Johnson told the Mercury News. They ll come up with something new and creative and fun and funky and interesting. My bet is people will flock to it.
Above: Apple drives a hard bargain when negotiating for space in the mall (Bay Area News Group).
