Retail Strategy: Exec Discusses What He Learned Building the Apple Stores

By Dennis Kuba
November 23, 2011

Ron Johnson, the new CEO of J.C. Penny and the former SVP of retail for Apple, talks about what he learned building the Apple Stores, the leading U.S. retailer with sales of $5,626 per square foot, nearly double the sales of Tiffany & Co, its closest competitor.
People come to the Apple Store for the experience, the most important part of which is the staff. The philosophy is NOT focused on selling, but on building relationships and making the customer’s life better, a model that worked for Apple.
“The staff is exceptionally well trained, and they’re not on commission, so it makes no difference to them if they sell you an expensive new computer or help you make your old one run better so you’re happy with it,” explains Johnson. “Their job is to figure out what you need and help you get it, even if it’s a product Apple doesn’t carry. Compare that with other retailers where the emphasis is on cross-selling and upselling and, basically, encouraging customers to buy more, even if they don’t want or need it.”
The Apple model is not easy, and has required persistence. The Genius Bar, for example, was not popular in the beginning, but Apple stuck with it as the best way to help customers. “Three years after the Genius Bar launched, it was so popular we had to set up a reservation system,” writes Johnson.

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