Apple's retail operation turns 25 years old today, marking a quarter century since the company opened its first stores on May 19, 2001.
Steve Jobs personally guided members of the press through the Tysons Corner store four days before it opened, after Apple announced the retail initiative on May 15. Some 500 visitors lined up before dawn on opening day, with the queue growing to over 1,000 by the time the doors opened at 10 a.m. The two stores, located at Tysons Corner Center in McLean, Virginia and Glendale Galleria in California, welcomed over 7,700 visitors and recorded $599,000 in combined sales across their opening weekend.
The decision to enter brick-and-mortar retail came at a precarious moment for Apple. With a market share hovering around 2.8%, the company was struggling to showcase its products through third-party retailers, where Macs were routinely relegated to dusty corners staffed by clerks with limited product knowledge. Jobs believed Apple would never shed its "cult" image unless it controlled the entire customer experience right down to the point of purchase. As he told Walter Isaacson for his biography: "Unless we could find ways to get our message to customers at the store, we were screwed."
To lead the retail push, Jobs recruited Ron Johnson, who had transformed Target's image with his designer merchandise line. Together they refined the store concept in a secret warehouse prototype, working through every detail from the single-entrance layout to the Genius Bar, which Johnson modeled on the service experience at Ritz-Carlton hotels. Gap CEO Mickey Drexler, who had joined Apple's board in 1999, also played a key role in shaping the retail vision.
Skepticism was widespread at the time. Apple's sales had dropped 29% the previous year, Gateway had just shuttered 40 of its own stores, and Channel Marketing analyst David Goldstein publicly predicted Apple would be "turning out the lights on a very painful and expensive mistake" within two years.
By 2003, Apple was recording $3 million in profit per store, per quarter, with approximately 60,000 visitors at each location. Apple Retail hit $1.2 billion in revenue in 2004, breaking the record for the fastest retail operation to reach a billion-dollar milestone. The company today operates more than 500 stores across 27 countries, with each location generating approximately $5,500 per square foot annually, among the highest figures in the retail industry.
The original Tysons Corner store relocated and reopened in a larger, redesigned space within the same mall in May 2023. Apple retail stores in both Tysons Corner and Glendale Galleria locations remain open today.
