Apple has removed ‘Store’ from the title of its flagship outlets. What does this shift mean for the retail giant’s bricks-and-mortar strategy?

Apple stores

Apple stores are set to change

Apple’s new model for over 400 flagship stores worldwide marks the shift from point-of-sale showrooms to leisure destinations

Apple’s new model for more than 400 flagship stores worldwide marks an ongoing shift from brick-and-mortar stores being showrooms and points-of-sale destinations, to having retail stores that act as leisure destinations in their own right.

Examining the key ways Apple’s store design addresses shifting consumer trends can provide important lessons for retailers on the future direction and purpose of physical stores.

“The stores due to be remodelled will no longer be referred to as Apple stores but simply Apple, followed by the place name”

New features of flagship Apple stores include The Avenue with themed windows that display Apple’s products, The Forum, which aims to be a gathering space for customers to learn from a variety of guest artists and speakers, and The Plaza – an outdoor public space with free Wi-Fi.

Creating unique store experiences

In addition to those new features, the stores due to be remodelled will no longer be referred to as Apple stores but simply Apple, followed by the place name.

This demonstrates the company’s confidence that their retail spaces will go beyond the purpose of a store and embody the brand credo of ”enriching lives” – reinventing retail experiences in the process.

Multichannel shopping and mobile-first consumption has led to tech giants such as Facebook investing in a new form of conversational commerce; using chat messaging to engage consumers in warmer, more personalised communication on the path to purchase.

Currently powered by human workers, over time we expect computer’s natural language recognition to improve and for AI to take over.

The reduced need for human assistance in basic customer service requests poses the question: how will the role of human employees change in the future, even in physical retail environments?

“With half of UK consumers craving new experiences, retailers will need to create new reasons for in-store rather than virtual visits”

If Apple’s increase in specialist shop floor roles such as Creative Pros is any indication, retail employees will act more as experts who deal with more knowledge-intensive queries, as transactions and basic questions will be increasingly undertaken by self-service terminals.

Apple Shanghai

Apple, Shanghai

The stores due to be remodeled worldwide will be referred to as Apple, followed by the place name

New retail spaces dedicated to educational events, such as in Apple’s newer stores, will compliment consumer ambition for easier, broader skill-acquisition, and are bound to have widespread appeal.

Future Foundation research shows that 68% of UK consumers feel that entertainment should be about learning new things as much as simply having fun.

Apple’s redesign acknowledges the changing purpose of a brand’s retail space.

With more than half of consumers craving new experiences, retailers will need to create new reasons for in-store visits rather than virtual ones, to provide entertainment and education, as well as expert-led customer service.

  • Chloe Wong is an analyst at the Future Foundation