Apple retail stores continue to penetrate the Chinese market and may open new stores in Shanghai, Wenzhou, Foshan in the next few years

On June 2nd, it was announced that Apple is planning to expand and revitalize its retail chain stores, aiming to further expand into Asian markets such as China and comprehensively upgrade its existing stores in the United States and Europe.According to insiders, by 2027, Apple plans to open 15 new stores in the Asia Pacific region, 5 stores in Europe and the Middle East, and 4 more stores in the United States and Canada

On June 2nd, it was announced that Apple is planning to expand and revitalize its retail chain stores, aiming to further expand into Asian markets such as China and comprehensively upgrade its existing stores in the United States and Europe.

According to insiders, by 2027, Apple plans to open 15 new stores in the Asia Pacific region, 5 stores in Europe and the Middle East, and 4 more stores in the United States and Canada. At the same time, the company will also renovate or relocate 6 stores in Asia, 9 stores in Europe and 14 stores in North America. Based on this calculation, Apple plans to build, relocate or renovate 53 stores in the next four years.

Apple's retail business has been in operation for 22 years and is one of the most respected chain stores in the world. But in recent years, it has faced various troubles such as the epidemic, customer service issues, and labor disputes. Apple hopes to inject vitality into it and revitalize it. The goal of this plan is to build brands in emerging markets such as India while enhancing the shopping experience for consumers in the United States and Europe.

Sources have revealed that among the new stores being discussed or developed, the upgrades and renovations of Apple's three stores in India, Malaysia's first store, and the old store in the commercial district of the Paris Opera House are the most eye-catching. Apple will soon open a new store near its London headquarters (Battersea PowerStation, which has retired but become a landmark) and plans to open a new store in Miami, USA. In addition, a flagship store will also be opened at Jing'an Temple Square in Shanghai.

Although the location and opening time of certain stores in the future are still internal predictions or suggestions, which may be postponed or cancelled, many stores are already under development and construction, and Apple has reached lease agreements with land owners. An Apple spokesperson declined to comment on this.

Four major categories of stores with maximum annual revenue exceeding $100 million

Apple has over 520 stores in 26 countries and regions worldwide, with approximately half of them located in the United States. As is well known, Apple chain stores are known for their profitability per unit area, but these stores place more emphasis on shaping Apple's brand image rather than selling products. Most of Apple's revenue comes from other channels, including its official website. Even so, these physical stores are still important places for customers to purchase products, receive technical support, and participate in offline courses on the day Apple products are launched.

Apple's retail business is led by Deirdre O'Brien, who is one of Apple's longest serving executives. O'Brien succeeded Angela Ahrendts, a senior senior executive of Boboli Group, after leaving in 2019. The construction and maintenance of these stores themselves are managed by Kristina Raspe, a global real estate and facilities executive at Apple. But Laspey reports directly to Apple's CFO, not to O'Brien.

According to internal regulations, Apple operates four types of retail stores: 1) standard stores located in indoor shopping centers; 2) "AppleStore+" stores opened in outdoor shopping malls or city streets; 3) Flagship store located in key areas with unique design; 4) The flagship+store with the largest scale and highest operating costs. According to internal data, the annual revenue of Apple's regular stores typically exceeds $40 million, while the revenue of Apple Store+stores exceeds $45 million. The annual revenue of flagship stores exceeds 75 million US dollars, while the annual revenue of flagship+stores exceeds 100 million US dollars.

The Asia Pacific region is the focus of expansion

Apple's recent store expansion focuses on the Asia Pacific region, with plans to build or renovate 21 stores by 2027. The Asia Pacific market generated approximately $130 billion in revenue for Apple last year, accounting for about one-third of its total revenue, and countries such as India have become important growth engines for Apple. In April this year, Apple opened its first two stores in India.

Later this year, Apple will open a new shopping center store in Wenzhou, upgrade its flagship store on Nanjing East Road in Shanghai, and add two new stores in South Korea. In this way, Apple's total number of stores in South Korea will reach seven, accelerating its expansion to compete with its main competitor Samsung Electronics. In March of this year, Apple opened a Jiangnan district store in Seoul, and a year ago, it opened a Mingdong district store.

By 2024, Apple plans to open its first store in Kuala Lumpur, Malaysia; Opening a new store in Jing'an Temple Square in Shanghai and renovating the Pudong store in Shanghai; Apple may also plan to open a store in Foshan, Guangdong. In addition, Apple plans to open a new store at the GrandFrontPlaza shopping center in Osaka, Japan, and renovate the Osaka Shinsai Bridge store.

Apple attaches great importance to the Chinese market, both as a manufacturing partner and as a consumer market for its products. Tim Cook, the CEO of the company, praised this relationship during a visit to China earlier this year, calling it a "symbiotic relationship". The growth of the retail industry also highlights Apple's emphasis on the Chinese market.

Apple is discussing opening its third store in India before 2025, which may be located in the Mumbai suburb of Boriwali, and may relocate its store in Perth, Australia. In addition, Apple plans to open four new stores in China by 2025 and renovate its Ginza store in Tokyo, Japan. In 2003, Apple opened its first Ginza store in Japan. Last year, after the original building was demolished, the store was relocated to a temporary location.

Apple plans to open its fourth store in India in 2026, located at the DLFPromenade shopping center in New Delhi, which may become the second largest store in India, after the newly opened Kerla store in Mumbai. Apple also plans to open a new store in Yokohama, Japan, and relocate its store in Marui, Shibuya, Japan to another location. By 2027, Apple's goal is to add a fifth store in Wali, northern Mumbai, India.

Renovation or relocation of outdated old stores

In Europe, Apple hopes to open a store in Battersea, London as early as this month. The company also plans to open a new store at the La Vaguada shopping center in Madrid and relocate the Milton Keynes store in the UK. Last year, Apple generated over $95 billion in revenue in Europe, accounting for about a quarter of its total sales. The UK is Apple's third largest retail market with approximately 40 stores.

Apple is currently renovating or relocating aging or outdated stores. Usually, these stores are small or lack some functionality, such as product pickup areas or classroom seats, which are different from modern stores. Over the years, Apple's aesthetics have also changed, and the company has replaced the original metal walls and decorative equipment with wooden shelves.

O'Brien is working hard to improve the consumer experience at the Apple store. In recent years, complaints from customers and employees about Apple stores have been increasing, and this chain store has lost its glory more than 20 years ago. In addition, Apple is also addressing the issue of forming unions for retail employees in the United States and overseas.

Next year, Apple plans to relocate four stores in the UK, as well as one store in Le Chesney, France, and open a fourth store in Sweden. In 2025, the company plans to relocate another UK store, possibly renovating its Opera store in France and opening a new store in AlAin, Abu Dhabi, which will be Apple's fifth store in the UAE.

In addition, Apple plans to open a new store in Dortmund, Germany. Germany is Apple's eighth largest retail market with over a dozen stores. Apple is discussing the relocation of its Munich store.

Apple's retail plan in North America is more focused on comprehensively reforming existing stores, rather than rushing to expand to new cities. Firstly, Apple plans to renovate its Tice's Corner store in Woodcliff Lake, New Jersey next month. This is Apple's last store to adopt a black facade, which has never changed since its debut in 2001. For the remaining period of 2023, Apple plans to relocate three more stores in the United States and one store in Canada.

Next year, Apple is considering opening several new stores in the United States, including a new store in a shopping center in Torrance, Southern California, and a large store in the Miami World Center development project. In addition, Apple is also discussing opening a large new store in Detroit.

Apple also plans to open a new store at the Berkeley Village Shopping Center in North Carolina to replace the store that suddenly closed after a series of shooting incidents in Charlotte in March this year. Next year, the company will also relocate five other American stores.

In 2025, Apple plans to open its second store in Kansas, a large store in Wichita, and plans to relocate three more stores in the United States. In addition, the company is also considering relocating its store located on St. Catherine Street in Montreal, Canada. (Small)