It has been confirmed that Apple is opening a new store in New York’s Grand Central soon, and it looks absolutely stunning. The store is expected to be 23,000 feet (crazy!), but how much revenue will it actually generate?
Needham & Co did some research and reports that Apple’s new store in Grand Central could churn up $4,406 per square foot. However, it must be noted that this number is an average of all of Apple’s stores worldwide so revenue per square foot maybe higher.
In addition, Business Insider’s Pascal-Emmanuel Gobry has pointed out a few interesting facts about the Grand Terminal itself. According to the terminal’s website, commuters’ household income is over $100,00, and 20% over $200,000 (did I just hear a cash register go KA-CHING!?). In addition, he points out that the foot traffic is tremendous.
- First of all, the store is in New York, which is full of tourists who want to buy things and people who on average make more money than elsewhere. According to the Terminal’s website, 50% of commuters’ household incomes are over $100,000, and 20% are over $200,000
- Just the sheer amount of foot traffic. An iron rule of the retail industry is that sales grow with foot traffic, always. And Grand Central Terminal certainly gets a lot of traffic: 750,000 people daily and 1,000,000 over the holidays, they say.
Currently, Apple’s iconic Fifth Avenue store is generating $350 million in revenue per year, or $35,000 per square foot. For a 23,000 foot store, the number would work out to $460 million in revenue, or $20,000 per square foot. That translates into revenue of nearly half a billion dollars!
At first, these numbers may sound surreal but going by Apple’s recent track record, these numbers may become believable soon.