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Apple retail head Ahrendts talks demise of retail, 'human business' at Cannes Lions

Apple retail chief Angela Ahrendts spoke at the ongoing Cannes Lions festival in France on Wednesday, interviewed by the company's own VP of marketing communications, Tor Myhren.

"The smart outside guys, they don't say retail's dying," Ahrendts said during one part of the interview. "They say digital's going to grow at three times the rate of physical. But in the next five years...75 percent of the people will shop online — shop — but 75 percent of the business will still be done in physical stores.

"And so retail's not going away, retail's not dying," said Ahrendts. "But it has to evolve, it has to continue to move. And I think it has to serve a bigger purpose than just selling."

Apple has bucked the trend set by other large U.S. retailers, many of which have had to close stores when faced with the onslaught of online-based vendors like Amazon, or simply a switch to online orders at their own websites. The company now has over 500 locations worldwide.

Under her tenure, Ahrendts has tried to further the draw of Apple retail by expanding in-store workshops and special events under the "Today at Apple" brand. The former Burberry CEO has even tried to rechristen the stores as "town squares" with a greater social purpose than just capitalism, though in recent months the company has made little mention of that label.

At Cannes, Ahrendts likewise brought up Apple's famous concept of merging technology and the liberal arts, suggesting that the company may be in "the human business" with the obligation to "humanize technology."

One example of this may be its long-running Apple Camp workshops for kids, which just recently opened up 2018 reservations. The program teaches basic artistic and technological concepts while exposing kids to Apple's product line.



25 Comments

racerhomie3 7 Years · 1264 comments

She is absolutely right!
People like my Mom & Pop really don’t like online shopping.
They want to use a product before buying one. That’s why I trust Craigslist more than eBay or Amazon.

macxpress 16 Years · 5913 comments

She is absolutely right!
People like my Mom & Pop really don’t like online shopping.
They want to use a product before buying one. That’s why I trust Craigslist more than eBay or Amazon.

There are certain things I like buying online because I know exactly what I'm getting and then there are things that I want to see in person before buying. Clothes are a good example. All places have different sizes so a medium in one store is different from another store where maybe you need a small, or a large in that store. This is annoying when shopping online because obviously you can't try it on before buying and I don't want to screw around with returning items. Shoes are another thing for the same reason. Also, some things don't look the same in person as they do online as you're either looking at a rendering of the item(s), or sometimes its just a shitty photo someone took.

I think retail still has a valid presence and if stores like JCP, Macy's, Target, etc can just get their act together and keep up with the times they'll be alright in the long run. The weakest links will die off such as Sears, BonTon, Toys R Us, maybe even JCP.

And, yes depending what it is, I like using the product before buying it. Again, I don't want to deal with returning something even as easy as it is with places like Amazon.

On the Apple Retail front...I hope Apple continues to expand their existing stores meaning, moving their stores into larger spaces. They're getting a little too crowded and now they've started this thing where they line people up that are waiting for the Genius Bar around IN FRONT of all of the products. So when go in, everyone is standing in front of everything around the outside walls (which is where all of the Macs are in my local Apple Store) so I can't use anything. It's incredibly annoying and IMO, totally defeats the purpose of the store. Sometimes I think Apple should just have a store next to the retail store that is just for Genius Bar appointments. Probably not the most financially sound idea, but it would at least eliminate the over crowdedness of their stores. Apple has the exact opposite issue of most other retail stores today and it needs to figure out how to solve it. Sometimes it gets to the point where its not even worth going in.

christopher126 16 Years · 4366 comments

I think she's a great addition to the Apple team. The look of the stores gets better and better. I love the use of trees and plants inside the store. 

Best

genovelle 16 Years · 1481 comments

Some of the unfortunate retail deaths are because of greed on the part of investor groups. This is what happened to Toys R Us. They were attractive because they were very profitable and well run, but severely undervalued which got them snapped up by an investor group. The group then repackaged them and took out massive loans to extract the hidden value and saddled the company with tons of debt and unmanageable rates. They when from profitable to losing money as soon as these notes became due. Even bankruptcy couldn’t save them because the debt was unserviceable. 

ascii 19 Years · 5930 comments

At my local supermarket, there is often a big queue for the automated checkouts, while the human staffed checkouts have no one wanting to use them, they literally have to go on the PA system and ask (beg it sounds like sometimes) people to please use the human cashiers. 
Online shopping vs staffed stores ("human business") is actually a false alternative. There is a third option: physical-but-automated stores. Best of both worlds?