Inside Apple's Retail Store Operation

In the wake of yesterday's announcement regarding Apple retail chief Ron Johnson's pending departure to take the CEO position at department store chain J.C. Penney, The Wall Street Journal publishes an extensive look at the company's retail store operations and philosophy, relying on internal training materials and interviews with former employees to gain a sense of what Apple is doing differently from other companies that has made its retail stores such an overwhelming success.

A look at confidential training manuals, a recording of a store meeting and interviews with more than a dozen current and former employees reveal some of Apple's store secrets. They include: intensive control of how employees interact with customers, scripted training for on-site tech support and consideration of every store detail down to the pre-loaded photos and music on demo devices.

While much of the information has been published in other venues or is simply common knowledge given the company's retail store workforce of 30,000 employees, the extensive report does nicely summarize much of what has gone into developing the Apple retail store experience.

According to several employees and training manuals, sales associates are taught an unusual sales philosophy: not to sell, but rather to help customers solve problems. "Your job is to understand all of your customers' needs - some of which they may not even realize they have," one training manual says. To that end, employees receive no sales commissions and have no sales quotas.

While Apple may not have strict sales quotas in place for its employees, the company does certainly have performance goals for metrics such as "attachment rates", the frequency with which staff members are able to convince customers to add on ancillary products such as AppleCare to their purchases. Staff members who fall short of the goals receive additional sales training or are diverted to other positions within the store.

apple retail store mbp
The report also covers the history of Apple's retail store initiative, noting that it began at a time when Apple was struggling to return to prominence following the return of Steve Jobs and when the company was having a hard time achieving appropriate visibility in third-party retail stores. Even in stores such as CompUSA where Apple had dedicated display areas, the company was frustrated over its inability to control the customer experience.

Consequently, Jobs brought in Gap president Mickey Drexler, who joined Apple's board and assisted with defining the company's retail store goals. Ron Johnson was recruited from Target to lead the effort, and the retail store push began with an extensive period of planning and mockups that ultimately led to the first two stores opening in Tysons Corner, Virginia and Glendale, California in May 2001.

Apple's meticulous attention to detail extends down to its hiring process, where prospective employees generally participate in several rounds of competitive interviews assessing a variety of details including problem-solving skills, leadership qualities, and enthusiasm for Apple products.

Once hired, employees are trained extensively. Recruits are drilled in classes that apply Apple's principles of customer service. Back on the sales floor, new hires must shadow more experienced colleagues and aren't allowed to interact with customers on their own until they're deemed ready. That can be a couple of weeks or even longer.

Apple's retail store chain has already grown to over 325 stores in eleven countries, and the company has been pushing forward on larger and more iconic stores in an ever-growing number of markets, continually extending its reach with what has become one the most successful retail sales models in use today.

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...

Top Rated Comments

un.titled Avatar
175 months ago
This thread is just proving how socially awkward/insecure people really are haha.
Score: 8 Votes (Like | Disagree)
Blorzoga Avatar
175 months ago
They should work on how annoying it is to have employees blocking the entrances, and asking you if they can help you with anything all the time as soon as you put a foot in the door. It causes tension more than anything on the customer. They should just do what other stores do... If the customer needs help, let them ask for it.

Next time you go to an Apple store, try this: when you walk through the door and they ask you if you need any help, say, "no, thanks, I'm just looking", continue walking to whatever it is you want to look at or play with. This strategy actually works in other retail stores too.
Score: 8 Votes (Like | Disagree)
GQB Avatar
175 months ago
Most of my experiences at the local Apple Store are negative.

I don't know if it's the people they pick or the way they train them, but they are some of the most smug 'salesman' I've ever been around.

If I wanted to be told how lucky I am to have you help me, I would go to a used car dealership.
Frankly, whenever I hear people (particularly computer types) say that their experiences at any particular place are always negative or that everyone there is 'smug', I tend to look at the customer, not the store.
Score: 6 Votes (Like | Disagree)
BLACKFRIDAY Avatar
175 months ago
Apple's numbers tell the tale. These stores aren't a retail success story by accident. They don't rake in insane amounts of money because the people who work there make customers feel like garbage, are dishonest, unhelpful, etc.

There's no miracle at work here. The places are well-run and they're effective. If you think there's some other force at play, do let us know.

But I'm sure your personal anecdotes are appreciated.
I wonder why your posts are terribly downrated and you're disrespected on this forum.

It's not that you don't make fan-boyish comments. It's that most of your comments are a sensible read and I don't know why people make a fuss about everything.
Score: 6 Votes (Like | Disagree)
dagamer34 Avatar
175 months ago
Man, attachments are the reason I don't go into retail stores that much. They hate people like me who know what they want and nothing else.
Score: 6 Votes (Like | Disagree)
Aduntu Avatar
175 months ago
oh my god, are you actually serious? you're saying that it's MY fault that i say "no" in the wrong way/tone?

that sounds familiar....to rape victims. "hey darlin', i know you said NO to the attacker, but, you know...you really said it in the wrong tone and it's your fault. please re-evaluate how you communicate next time you're attacked".

Aduntu.....no, means no. period. :rolleyes:

I'm not going to pay attention to that absurd analogy.

The fact is, if you cannot convey to a salesman that you aren't interested when you say no to an offer, and they continue to offer, you're doing one of two things wrong. You're either not effectively communicating your position or you're doing yourself a disservice by allowing him to continue ignoring your responses. Your two solutions are to make yourself clear, or walk away.
Score: 5 Votes (Like | Disagree)