Report: Apple Retail Stores Now Focused on Revenue, Receive Budget Cuts
August 28, 2012 8:57 AM
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Apple's new retail chief looks to trim the fat
Odd things have been happening at Apple retail stores over the last few weeks. Earlier this month, reports started surfacing that a number of retail workers at Apple store locations had been laid off. Apple
to those reports by saying that it had "messed up" in its retail hiring formula but hadn't laid anyone off.
"Making these changes was a mistake and the changes are being reversed," said Kristin Huguet, Apple spokeswoman, at the time. "Our employees are our most important asset and the ones who provide the world-class service our customers deserve."
However, reports are coming in that Apple stores are seeing their budgets cut, and a bigger emphasis is being placed on revenue. With a
market cap of well over $600B
and record profits quarter after quarter, it seems a bit odd to be placing such a heavy focus on revenue and cutting the budget of its retail outlets which have historically been very customer friendly.
reports that employees still haven't received an official explanation of changes made in staffing levels, and that signs continue that Apple is focusing on revenues and profit instead of customer satisfaction.
According to sources cited by
, employee performance standards have been modified to place an emphasis on sales functions. Reports also indicate that more small products will be stocked at Apple retail stores and several budget categories for the retail outlets have been cut, including the budget for store maintenance.
Sources say that workers are allegedly being evaluated based on the number of contracts sales for iPhones they're able to generate and a number of "essentials per hero product" sold with each product such as cases, and accessories. The sources also indicate that the number of training areas in stores is being reduced to accommodate the extra small products and accessories.
IFO Apple Store
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RE: I'm sorry
8/29/2012 7:15:36 AM
You must have been living in a cave before 2008. If the poor customer service in retail stores is driven by the high minimum wage and the state of the economy, how do you explain the poor customer service that existed when the minimum wage was lower and retail sales were at record highs?
The reason you have poor customer service in retail is not because businesses are paying their employees too much, it's because they aren't paying them enough. Salespeople used to work on commission years ago. Sure you had to be a little more wary of BS artists, but they actually gave a crap whether or not you bought something and they wanted you to be happy so you would come back to them or recommend them to friends.
Best Buy was a big part of changing that model, because they realized they could hire barely literate teenagers at nearly minimum wage and ride them about numbers and make a bigger profit. Back in the day, when stores with commissioned salespeople still existed, you would have no trouble getting help with something. Go into a Best Buy and try to get help, you practically have to set up a bear trap and hope you catch an unsuspecting employee.
I'm not a fan of Apple really, but I guarantee the people working in their stores are knowledgeable about the products and make more than minimum wage. Although I would guess it's probably still not a livable wage, let alone one you could plan retirement on.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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