Apple has turned its eye away from opening a new retail store at 21-25 W. 34th St. between Fifth and Sixth avenues, diagonally across from the Empire State Building. While Apple controls that space and has had “unofficial” plans to open a new store there, recent information suggests the company has completely lost interest.
Apple has turned the retail world upside down since they launched their first two stores in May of 2001. In the face of nay-sayers, while their competitors were closing their retail doors, Apple launched a new kind of shopping experience, and thus far it has worked. Netting the company roughly $4k per square foot annually, the Apple retail experience has been proven more than successful, it’s been a smash breakthrough for the tech firm.
New information being reported by the New York Post suggests that Apple has chosen to forgo opening a new retail store in Manhattan. Even though the stores are so immensely successful, where they are positioned and trafficked has a lot to do with any particular store’s success.
Apple controls 21-25 W. 34th St. between Fifth and Sixth avenues, diagonally across from the Empire State Building. Its 75-by-100-foot site constitutes half of the crater that also includes 27-29 W. 34th St., which has been leased to fancy footwear retailers Geox and Aldo.
Even though a building is expected to rise soon in this location, Apple’s situation and stance on the issue is less than clear. “It’s been all cloak-and-dagger,” said Prudential Douglas Elliman honcha Faith Hope Consolo. In response to the news, an An Apple rep explains, “We’ve made no announcement about that location and can’t comment.”
As Macnn points out, the space is about 18,000 square feet in size. Even though Apple has initially been excited about leasing the space, they currently pay nearly $6 million in annual rent, with absolutely no profits, benefit or property value increase at all. Apple will be sub-leasing the space through Robert K. Futterman’s website, which shows availability starting April 1st, 2009, for a 13 year maximum period.
Other shop owners and retail vendors have been understandably disappointed by the absence of an Apple Store in their area. Unless they are direct Apple resellers, any store is bound to profit and gain traffic from the presence of an Apple Store nearby. They were hoping for another flagship similar to Apple’s trademark store on Fifth Avenue in NYC. Unfortunately, a source close to the matter claims that early into the lease, Apple CEO Steve Jobs visited the space, and upon seeing a run-down, dilapidated building across the street, Jobs explained “this is not for Apple.”
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2 Comments to “Steve Jobs On New NYC Apple Store, “This is not for Apple””
I think we could use another Apple Store here in New York. For sure, we should try and match the Starbucks ratio per block. I think it’s like 8 per block or something.
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Actually, I think it’s more like 12 per square mile. I think that’s how they measure it.
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