Recently it has been discussed that Apple will be opening 25 mini-stores within Target stores. Seeing @EHolmesWSJ tweeting from a Target event this morning made me think of the advice Buxton would give to Target and Apple when deciding which 25 lucky stores should receive an Apple mini-store.
I made the rounds in the office and asked what advice our executives would give to Target and Apple, and this is what I heard:
1. Use customer analytics to pick the 25 Target locations that have high concentrations of households who have a high propensity to shop at Apple AND Target. (You might read that one again, it's very important.)
2. Make sure these select locations aren't too close to existing Apple locations so there is no cannibalization.
3. Put the Apple store in trade areas where they are already selling Apple products very well (iPods, iPads, etc.)
4. Ensure that you are placing the store-in-store in a trade area ripe with Apple core customer potential ensuring a market for some of Apples higher-dollar products (macs, etc.). In 2011, we wrote a blog post about how amazingly well Apple does at capturing the maximum dollar amount per sq ft at their locations.
5. And the last one as a defensive strategy, place the Apple stores in Targets where they can checkmate Best Buy. An Apple store will beat Best Buy on customer experience.
You can have the best selling and marketing strategies in the world, but if there aren't enough of the right kind of Apple/Target potential customers in the close proximity to the store, the it won't be as successful as it could be.