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Apple says its goal is to achieve a net-zero impact on the world’s supply of sustainable virgin fibre and power all its operations worldwide on 100 per cent renewable energy. (AP)
Though Apple has not officially announced where it will open stores in the UAE, a report states that shopping malls having the store registers surge in visitors and retail sales.
The iPhone maker’s 400-plus retail stores have contributed only a small part of its Dh672 billion ($183 billion) in revenue in 2014, a Green Street Advisors, a real estate research company, cited by the Wall Street Journal, said the store locations can raise sales at the malls by 10 per cent.
The report also revealed that the draw of Apple stores allows it to negotiate lower rentals, but drives rents higher for neighbouring stores. A mall tenant may pay rent up to 15 per cent of its sales per square foot, but in comparison Apple just pays two per cent.
Some of the mega malls in Dubai are going in for expansion and could house one of the stores, while the other is planned in Abu Dhabi. UAE-based mall operators refused to comment when contacted by Emirates 24|7. The company is on a hiring spree in the UAE.
In August 2014, this website reported, quoting an industry source that Apple was planning to open two stores in the country, one of which could be the world’s largest and the UAE may become the regional headquarters for Apple, which has an office in the Business Bay.
According to The Journal, Apple stores draw about one million shoppers each day with average stores generate nearly $6,000 in sales per square foot, while the best performing shops could bring in $10,000 per square foot.
Retail experts said it was too early to comment on how a single Apple store in Dubai could impact a mall’s footfall, but on the lease side malls here generally signed long-term leases with international companies. In such cases, rents remain static for at least a few initial years and rise on pre-determined rate over the period.
In Q4 2014, Cupertino tech giant said it spent $3.5 billion related to leasing retail space and had nearly 450 Apple stores in operation around the world.
Average rents in Dubai malls have remained stable with no rental growth forecast over the next 12 months as the retail supply expands significantly, said JLL, a real estate consultancy, in its Q4 2014 Dubai property market report.
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