APPLE STORESGenius Bars and Siena Sandstone

By Walter Isaacson

Lea Stemmer 4/9/15 1

The Trigger/Initiation

- Jobs hated to cede control

Problem:

- No control over the experience of buying an Apple product in a store (big box stores)

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Problem of big box stores

- No knowledge

- No incentive to explain the specialty of Apple products

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Idea

-> Own shops for Apple

“Unless we could find ways to get our message to customers at the store, we were screwed.”

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The process

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Step 1 – Finding the team (Preliminary studies)

- Late 1999: Steve Jobs interviewed executives who might be able to develop Apple Retail Shops

-> Trying to find the right team for the project

-> Ron Johnson

- vice president for merchandising at Target

- passion for design

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Step 2 – Scanning the environment (Preliminary studies)

- Jobs and Johnson walking around a closed mall

- Checking out different stores

-> Way to find out what they want for Apple

- Jobs‘ Decision:

- only one entrance (more control)

- best location (Malls or Main Street)

-> people drop in by curiosity

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“...once we get a chance to show them what we

have, we will win.” (Steve Jobs)

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Important factors

- Size of the store

-> Show the importance of the brand

“The store will become the most powerful physical

expression of the brand” (Steve Jobs)

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Important factors

- Only a few products

-> Take it as an advantage!

- minimalist and airy store, where you can try the products

-> The stores should impute the ethos of Apple

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The Prototype

- Steve Jobs presented his idea to the board

-> The board is against it

-> Only one supporter: Mickey Drexler

- Advice: Build a prototype on the Apple Campus

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Designing the Prototype

Duration: 6 months

- wander around, finding new ideas

- meeting every Tuesday

- inviting friends

- Jobs: obsessed with every detail

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The Prototype

- Jobs wants to avoid having a cash register counter

→ needs a specialist: Larry Ellison

“...Steve gave us the exact, explicit recipe for how

he wanted the checkout to work.”

→ Project Manager is giving the guidelinesLea Stemmer 4/9/15 13

-> Genius Bar

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October 2000

- Nearly finished

Johnson: „the prototype is wrong“

-> The stores should be organized around what people might do

Turning point:

What is the project manager (Jobs) going to do?

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Turning point

- Jobs adapts the idea and changes the whole concept shortly

-> Delay: 3-4 months

“If something isn’t right, you can’t just ignore it and

say you’ll fix it later...That’s what other companies

do.” (Jobs)

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January 2001 – Prototype completed

- The board: enthusiatic -> approved the prototype

A lot of critics from outside experts:

“Apple’s problem is it still believes the way to grow

is serving caviar in a world that seems pretty

content with cheese and crackers.” (Joseph

Graziano, Apple's former CFO)Lea Stemmer 4/9/15 17

The first store: Tyson's Corner, Virginia

- May 19, 2001

- 2004: 5,400 visitors per week (in comparison Gateway: 250)

- Revenue: $1.2 billion

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Team

Project Manager: Steve Jobs

Project Assistant: Ron Johnson -Vice President for merchandising at Target - passion for design

The board (includes Mickey Drexler, the only supporter of the project from the first moment on

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- Larry Ellison (Cash register)- architectural firm of Bohlin Cywinski Jackson

Further Development

- Still working on the perfect store

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-> Special gray for the restroom signs

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-> Staircases (see-through-look)

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-> light wood floors -> original siena sandstone

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- Since September 2006: all-glass storefront (before: black metal panels with white, back-lit Apple logos)

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2015 - Today

- 453 stores in 16 countries

- Store in Manhattan. 24/7 open, more gross per square foot than any store in the world

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Lesson learned

- Stick to your idea –> Project manager must be brave

- Scan the environment

- Choose the right people

- Delay vs. Going public even if it is not perfect

- Time triangle

- Finished project -> still development

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Questions?

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