Apple stores showing 'aging spots' with declining sales
Apple stores that remain the gold standard of retail have shown some aging spots after sales per square foot throughout the chain indicated a declining trend.
According to the firm's regulatory filings, sales per square foot throughout the chain fell 2.5 percent in the year ended Sept. 30 from the previous year, after growing more than 20 percent in 2011.
While the Cupertino, California company's 4,592.20 dollars in sales per square foot is the envy of every shop owner in the country, Tiffany's 3,017 dollars per square foot is the second best. But growth in revenue per store is noticeably lower, according to the filings, the New York Post reports.
According to the paper, the average Apple store posted a revenue gain of 30.2 percent in 2010 over the previous year, but that gain fell to 27 percent last year and just 19 percent in the most recent fiscal year.
The troubling signs come as Apple's shares recently fell 20 percent from their 2012 high that has focused a spotlight on the entire company's operations, including its once unstoppable retail juggernaut, the paper said.
"The fact is there's not much room left to grow," said Colin Gillis an analyst with BGC Partners.
Most industry watchers see the slowing growth as inevitable for a company that has had such massive success. Eventually, it becomes harder to find untapped customers, and the company already has conquered the choicest retail locations, the paper added.