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The Success of Apple’s Retail Division

One of Apple’s greatest achievements is the success of their 324 retail stores, spanning several countries and employing 30,200 employees who are, on average, paid much more than their competitors. Becoming an Apple Employee isn’t easy, but those who are hired on as a “blue shirt” come to enjoy a past-paced product environment and challenging rewards with health benefits and company perks based on the stores’ target success. With 2,500 positions open in retail, Apple is still looking to add Geniuses, Creatives, and managers to help customers and sell product on their show floors, and it’s Shareen Pathak from FINS who comments on Apple’s success in this space.

According to people familiar with the operation, the Fifth Avenue store employs one staff member for every 20 square feet of retail space. That’s one staffer every few feet. All a shopper has to do to get help in an Apple store is reach out and touch someone.

The employees, under strict NDA and ready to serve potential customers, are offered a relatively healthy amount of pay for their hard work. Geniuses on average make $18 dollars an hour, with the helpful blue shirts earning around $16 dollars an hour as they guide customers to new products, show them how to use services, and make sales. In comparison, Pathak writes that a Best Buy Geek Squad Agent on average only makes $12 an hour. Part of Apple’s success is that while work can be demanding, employees are motivated and expected to work hard and sell the Apple experience.

In the first two fiscal quarters for 2011, Apple’s retail division has already earned $7.04 billion in revenue of Apple’s $51.41 billion, in comparison to Pathak’s figure of $10 billion in retail of Apple’s $60 billion at the end of September, 2010. The retail division is on track to nearly double the revenues earned by 2012, after Apple’s Peter Oppenheimer announced a billion retail customers have visited the Apple Store on April 20th, 2011.

From the glass entrances to the Glowing Apple above the double doors, to updated iPad experience and the employees who are ready to help you at moment’s notice, Apple’s retail stores offer a level of convenience and friendliness that big retail chains just can’t match. It’s well worth your time to read the rest of Pathak’s writeup on how Apple hires, how valuable employees are to the company, and just how hard they work to make the whole system operate as a well oiled machine.

[via FINS, Fiscal Q1 2011, Fiscal Q2 2011]

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