Dive Brief:
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Apple stores kick up sales by 10% in the malls where they’re located, according to research by real estate research company Green Street Advisors cited by the Wall Street Journal.
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That is giving Apple leverage on rent, the Wall Street Journal reports. Apple stores pay no more than 2% of their sales per square foot, compared to a more typical rate of 15%, the Journal reports.
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Apple hasn’t commented on their rental deals.
Dive Insight:
This is another feather in Apple’s brick-and-mortar cap. With many American malls faltering, having an Apple store inside can really make a difference. Still, it’s not a complete or long-term solution even for malls that do have Apple’s retail success in their mix. And those rental deals enjoyed by Apple are not quite the cut rates enjoyed by anchor tenants like department stores, which are more likely to move shoppers through the mall than Apple stores do.
“There are a lot of people who go to Apple and leave,” said Green Street senior analyst DJ Busch told the Wall Street Journal. “Apple doesn’t promote cross shopping as much as healthy department stores do.”
