Apple retail guru Ron Johnson may be on the way out, but Apple's retail efforts are as aggressive as they've ever been.
Apple retail guru Ron Johnson may be on the way out, but Apple’s retail efforts are as aggressive as they’ve ever been.
Back in February, reports surfaced stating that Apple wanted to construct a new Apple Store inside of New York’s historic Grand Central Station. But seeing as the location is a city landmark, actually getting a lease signed involved a lengthy application and approval process.
And now comes word that Apple has signed a 10-year lease with the Metropolitan Transportation Authority (MTA) Real Estate and Leasing division and is set to open the largest Apple Store in the world.
Just how big, you ask?
Try 23,000 square feet on for size.
The storefront will occupy both of Grand Central’s north and northeast balconies and will displace Charlie Palmer’s Metrazur restaurant.
Apple will initially pay rent of $800,000 a year, nearly half a million more than Metrazur paid.
After 10 years, the rent will balloon to more than $1 million annually.
The company will also pay to refurbish the space.
The deal still needs approval from the transit agency’s financial committee, but assuming things go as planned, the lease will be presented to the agency’s board of directors this coming Wednesday for the final go-ahead.
In a statement, the MTA said the deal “has the potential to bring a great new shopping destination to iconic Grand Central Terminal and significantly increase revenues for the MTA’s transportation system.”
As to Palmer’s Metrazur restaurant, it’s worth noting that Palmer’s lease on the space ran until 2019 and that the eatery, by all accounts, was quite successful. It stands to reason that Apple paid him a handsome sum to abandon his lease prematurely.
Being oh so coy, Palmer explained: “It’s an offer that’s hard to refuse. It’s hard to compete with whatever that company might be that’s taking the space.”
Duly noted, Charles.
In other Apple retail store news, Tim Cook mentioned during Apple’s most recent earnings conference call that the company is planning to open up 30 new stores during the September quarter, including its first in Hong Kong. All told, Apple will have opened up 40 new retail stores in 2011, with 28 of them being outside of the US.
