Why The 'Experts' Failed To Predict The Apple Store's Success

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Many retail experts and analysts failed to predict the massive success of the Apple AAPL -0.12% Store when it first opened in 2001 because they made the mistake of confusing numbers with feelings. Numbers don’t have feelings; people do. And people drive a great customer experience.

On paper, the numbers didn’t look good. Apple only had a three percent market share when the stores opened. Computer maker Gateway had shuttered its retail division because individual stores were only attracting 200 people a week. Apple was also competing againstDell with its slim margins and lower costs.

The spreadsheet analysis led the experts to make statements like these:

“Sorry, Steve, here’s why Apple Stores won’t work.”

“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.”

“I give them two years before they’re turning out the lights on a very painful and expensive mistake.”

As the Apple Store launches the new Apple Watch, the “numbers” that experts said wouldn’t add up now tell a different story. Today 50,000 Apple Store employees serve one million customers a day across Apple’s 450 stores worldwide. The Apple Store generates more revenue per square foot than any other retailer, and by a mile.

photo credit: Associated Press

 


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