updated 11:15 am EDT, Mon August 24, 2009
Apple tops on Fifth Ave.
Apple's flagship store in New York City is likely producing the highest gross of any shop along Fifth Avenue, says the executive VP of Newmark Knight Frank Retail, a New York real estate broker. Jeffrey Roseman comments that the cube-shaped Apple Store probably has annual sales of over $350 million, despite only occupying 10,000 square feet in its luxury shopping district. Faith Hope Consolo, a division chairman at Prudential Douglas Elliman Real Estate, notes that Apple could be the all-time champion of Fifth Avenue sales, though Apple does not publicize individual store revenues.
Some of Apple's neighbors include Tiffany & Co., the famous jeweler, which is earning sales of only $18,000 per square foot in comparison to the estimated $35,000 for Apple. A Tiffany spokesman suggests that the Apple figure is unrealistic, but former's sales dropped 22 percent in the last quarter, roughly in line with other Fifth Avenue outlets such as Saks and Abercrombie & Fitch. Apple retail chief Ron Johnson will only say that the company is "thrilled" with sales in its three Manhattan stores.
It is known however that Apple increased its retail chain revenue by 2.5 percent during the first six months of 2009, while the American retail industry as a whole slipped 9.2 percent versus 1H08. Within New York City, industry sales are believed to have dropped 8 to 10 percent since 2008.
Storehouse Partners analyst Patricia Edwards observes that Apple's performance may be attributable to a general desire for high-tech gadgets, which many people see as "both a need and a want," as well as a kind of retail "therapy."