It is difficult to understate how much shop maintenance matters for customer perception of a particular retailer, brand or product, but perhaps the best illustration can be found in the most extreme example of a retail revival.
According to market capitalisation figures published by Investopedia, Apple is the biggest company in the world and has been for at least a decade, which makes it rather surprising that at one point it was weeks from bankruptcy.
Back in 1997, still known as Apple Computers, the company had desperately struggled for over a decade following the resignation of founder Steve Jobs after the company failed in its bid to upend the now-ubiquitous IBM PC.
Following this, Apple struggled tremendously and relied on the ancient Apple II computer for many of its sales and still sold the computer as late as 1993.
The Macintosh struggled as well, failing to sufficiently differentiate itself despite attempts to diversify the Macintosh brand and sell Apple computers in limited store-in-a-store locations in existing electronics retailers.
This backfired, as did the move to allow third-party companies to make Macintosh computers and the early attempt at a PDA known as the Newton. By 1997, the company was weeks from bankruptcy and rehired Steve Jobs in an attempt to save themselves.
One of the first steps he made was to revamp the retail strategy of the company, believing that many of the big box retailers were using Apple products merely to market their own, cheaper computers.
Instead, Apple developed a partnership to initially sell the new iMac and PowerBook G3 with retailers with dedicated Apple departments. However, the company wanted to take it a step further and open dedicated stores which fit the company’s ethos and brand image better.
The result in 2001 was the first ever Apple Store at the Tysons Corner Center mall in Virginia, which immediately turned heads by looking like no other computer store out there.
The model of a clean, minimalist store with limited stock on display, an emphasis on test units and a focus on glass, marbled concrete and wood as its primary materials turned heads and has been credited for improving the brand identity of Apple as a whole.
It highlights the importance of the retail unit in shaping customer perception, as without the Apple Store, it is difficult to believe the makers of the iPhone would be in as strong a position as they are.
