Apple To Continue Investing In Retail Stores Despite Increasing Online-Sale Shift

This post was originally published on this site

© Provided by BenzingaApple Inc (NASDAQ: AAPL) will continue to scale up its global retail presence as physical stores help create a connection with consumers, a company executive told Germany’s Funke Mediengruppe (via Bloomberg).

What Happened: Despite a growing preference to buy online during the COVID-19 pandemic, the iPhone maker sees merit in adding more physical stores, Deirdre O’Brien, senior vice president of retail and people at Apple, told Funke.

Load Error

The Cupertino, California-based company runs about 500 Apple stores globally of which about 100 are in Europe.

“On our online site people can learn a lot about the products; in a store they can touch them and get a feel for them,” O’Brien told Funke. “We intend to add more stores.”

See Also: McDonald’s To Close Hundreds Of In-Store Walmart Eateries

Why It Matters: The COVID-19 pandemic has put pressure on a number of U.S. retailers that were already struggling from higher rents and the growing shift to online buying. Some of the iconic American retailers were forced to declare bankruptcy after last year amid diving sales and rising debt. These included J.C. Penney, Neiman Marcus, and car rental company Hertz Global Holdings (OTC: HTZ). 

Apple’s second-quarter revenue jumped 54% to $89.6 billion helped by strong iPhone sales, including record contribution from the Services segment and a strong showing in the key Greater China region.

The tech giant has announced an investment of about EUR 1 billion ($1.2 billion) in Munich to build a center for computer chip design. 

Price Action: Apple shares closed  0.53% lower at $124.61 on Friday.

Read Next: Apple CEO Tim Cook Cites iPhone ‘Principles’ As Reason Behind In-App Purchase Rules In Court, Don’t Want ‘Toxic Kind Of Mess’

Continue Reading