Apple Launches Fifth Avenue Retail Store

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Apple unveils its much anticipated retail store at Fifth Avenue in New York City. Analysts said that Apple's latest retail store showed that its retail strategy was successful, despite the initial skepticism and conflict with channel partners.

On May 19, 2006, Apple Computer Inc. (Apple) launched a new retail store at Fifth Avenue, Manhattan, New York City. Many of Apple’s fans braved the rain to attend the opening of the store at 6 p.m. EST.

The store, which had a 32 feet glass cube entrance with an Apple logo suspended in it, was expected to be Apple’s most elegant retail store till date. The store had a circular glass stairway and a cylindrical elevator leading to a 25,000-square-foot underground space. The store would provide Apple enthusiasts to preview and buy the company’s most popular products like the iPod, iPod shuffle, iPod Nano, iMac, and PowerBook laptops. Apple had plans to operate the store 24 hours a day providing uninterrupted service to customers. Analysts predicted the launch of this store to be a crowd-puller as Apple’s other retail stores.
Apple CEO Steve Jobs (Jobs) said, “With outstanding service and an amazing location open 24 hours a day, we think the Apple Store Fifth Avenue is going to be a favorite destination for New Yorkers and people around the world.”1

Fifth Avenue had one of the highest tourist and retail traffic in the world with famous up-market retail outlets like Saks Fifth Avenue, Prada, and Tiffany and Co. Analysts mentioned that this store would give the Apple brand more visibility. Moreover, they felt that the elegant store design would add to the company’s image of having simple, user-friendly and aesthetically designed products.

The store was launched as part of Apple’s retail strategy, which had begun in 2001. Prior to that, Apple sold its products mostly through a network of authorized Apple resellers, retail chains like Sears and Roebuck & Co (Sears), and a few large electronic resellers like MacMall, MacZone and Best Buy. However, with the emphasis on its retail initiative, Apple severed its relationship with large retailers like Sears in 2001 due to poor sales support.

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[1] “Apple Store set to open on New York's Fifth Avenue,” www.tmcnet.com, may 18, 2006.

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