Apple Closing 20 Retail Stores, Building Larger Locations To Meet Traffic Needs

Apple CEO Tim Cook has announced plans to shut down 20 Apple retail stores. Speaking to a group of shareholders at the Goldman Sachs investor conference, Cook explained that Apple has outgrown the stores scheduled for closure. To remedy the situation, Apple will build bigger stores to fit the increasing influx of customers.

Apple’s 400+ retail locations are now serving more than 10 million customers per week.

The tech giant is currently in the process of opening 30 more stores, “disproportionately outside the U.S,” with the next Apple retail location arriving in Turkey.

Apple currently operates retail stores in 13 countries around the world including four new stores Apple opened in China during Q4 2012.

Apple’s retail stores racked up $6.4 billion in retail sales last quarter, up from $6.12 billion during Q4 2011.

The average Apple retail store collects $50 million in revenue while Apple stores accounted for 370 million visitors in 2012.

According to Tim Cook, the Apple retail stores have been a huge hit for iPad adoption rates. Cook notes:

“I don’t think we would have been nearly as successful with the iPad, as an example, if it weren’t for our stores.”

By getting the Apple iPad into the hands of consumers, Apple was able to change the impression that the devices were “heavy” gadgets that nobody needed.

Cook also gloats that the Apple retail experience is hard to replicate, noting:

“I’m not even sure store is the right word any more – they’re much broader than that. They are the face of Apple for almost all customers.”

Are you surprised by the success of Apple retail stores?