However, not every buyer operates with such certitude, and not every electronics buyer buys at malls or Apple stores. For about a decade, Apple has operated a store-within-a-store at Best Buy; the partnership expanded in 2019 to include authorized repairs at every Best Buy in the U.S.. One pre-pandemic account estimated that Apple accounted for up to 20% of the revenue at Best Buy stores and drove significant foot traffic to the retailer. A growing retail trend, stores-within-a-store have become a pillar of Best Buy’s retail strategy, allowing it to escape the fate of competitors such as CompUSA, Circuit City, and Fry’s.
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Apple also has a long history with Target, the employer of Ron Johnson before he became Apple’s founding retail chief. As a general merchandiser, Target attracts a different kind of regular traffic than the Apple Store or Best Buy. According to data from research firm Numerator, Target shoppers are more likely to be younger, have kids, and earn over $80,000/year (and even more likely to earn over $100,000/year) than the average shopper; these are all characteristics that favor Apple purchases. Nevertheless, according to data from my firm Reticle Research, a greater percentage of purchase intenders of non-Apple products in major categories, like Windows PCs and Android phones, are likely to consider Target than those of their Apple-intending counterparts. Target could provide an opportunity to intercept such shoppers. Furthermore, while the improving post-pandemic retail landscape has lifted all boats, malls face a future that relies less on shopping, And while the Apple presence has launched in fewer than 20 Target stores, Target’s footprint offers plenty of room to grow. Target has almost 2,000 stores in the U.S. as opposed to about 1,000 Best Buys and fewer than 300 Apple Stores. Crowdsourced data firm Premise, which gathers data from contributors accepting simple real-world tasks, recently sent members of its panel to about half of the initial Apple stores-within-a store; they reported favorable impressions. Most who had visited an Apple Store said that the Target locations looked just like one. About two-thirds said staffers asked if they could help the shoppers with a particular question. And a bit less than half of the contributors became aware of an Apple product they hadn’t known about. Most significantly, though, about four out of five said that the store resulted in a better presentation of Apple products versus those of competitors that may play on a more level playing field at Best Buy. While Apple’s product selection at a Target store can’t be expected to match that of an Apple mall store, it can still be a good showcase for many of its more mobile products, including AirPods, iPads and of course iPhones. Some scenarios, such as a serendipitous search for an accessory, could be more conducive to a Target location than an Apple Store. And, as at Best Buy when it comes to Apple’s growing services revenue, Apple could benefit from having staffers available at a venue that sells non-Apple platforms for Apple subscription services such as Apple TV+ on Roku devices. PREVIOUS AND RELATED COVERAGE Apple reopens all stores in US for first time since pandemic beganIt’s a small milestone in the battle to return to normal. Apple starts two-hour delivery from its retail stores for $5The tech giant is expanding the way people can get items such as iPhones delivered, using stores as hubs to send out products. Apple says go to Best Buy for repairs. A Best Buy salesman gave me the bad newsApple says it has expanded its authorized service network to 1,000 Best Buy stores. A visit to a Best Buy, however, reveals some of the catches. They’re quite big.
