High Apple Store Traffic Distorting Mall Rent, Lifting Mall Sales
11th March 2015
Apple Stores’ ability to generate a high rate of foot traffic in malls is allowing Apple to win “sweetheart deals” from mall operators while increasing mall sales 10%, according to a new Wall Street Journal report.
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Because Apple Stores bring in so much traffic that leads to increased sales in other parts of the mall, Apple has been able to win rental agreements that see it paying as little as 2% of its sales a square foot. Typically, rents paid to mall operators are based on how much the retailer expects to sell, which is influenced by overall mall traffic.