Manhattan’s Fifth Avenue between 49th Street and 60th Street is home to some of the most expensive stores in the world. Shops like Louis Vuitton, Tiffany & Co., Gucci, Prada, Armani, and Versace attract millions of wealthy customers all year round. But with so many high-end brands to choose from, only Apple earns more money per square-foot than anyone else.
However, the competition on Fifth Avenue is about to get stiffer as Microsoft moves in.
The Big Apple Belongs to Apple
The Apple Store on Fifth Avenue.
The Statue of Liberty has been New York City’s most iconic landmark for over 100 years but it still can’t win a popularity contest against Apple. According to geotag data embedded into millions of digital photos, The Apple Store on Fifth Avenue is the most photographed location in New York City. More people want a snapshot of the Apple Store than any other building in Manhattan and no other store is quite like it.
Regarded as one of modern architecture’s greatest achievements, the glass-cube design of Apple’s Fifth Avenue location has won several awards. The 32-foot glass cube supports itself without any structural steel and anyone that sees it in person will undoubtedly marvel at the design – they may also wait in line for several weeks to buy a new iPhone. For many people, the Apple Store on Fifth Avenue is also center stage for the tech world.
The square feet on Fifth Avenue aren’t cheap, but any brand that wants to distinguish itself from the competition belongs there. Only the best-of-the-best brands decide to set up shop on this coveted street, and those that do become iconic. And after five years of careful planning, Microsoft is ready to move into the neighborhood.
Welcome to the Neighborhood
Microsoft Store employees are eager to help you.
Today, Microsoft is confirming they have signed a lease to open a flagship store at 677 Fifth Avenue in New York City. This location is a mere five blocks away from the Apple Store and will feature an “experiential space” for Microsoft to engage with customers and partners in new and innovative ways.
“Our New York City flagship location is coming at the right time. We are proud of the progress we’ve made to make Microsoft Stores the best place to go for Microsoft products like Surface Pro 3, Windows Phones, Xbox One and more, as well as a full lineup of accessories. Our passionate and knowledgeable store associates are building individual relationships with our customers and making sure each store is part of the fabric of the community that it operates in. Our Answer Desk experts can help you with all of your tech needs – with numerous services for free. And with the Community Theaters in many of our stores, anyone can come and discover how to get the most out of Microsoft products – for example, kids can learn about science and technology, how to program and more; and small businesses can take classes on how to be more productive – all at no cost.”
– David Porter, Corporate Vice President, Worldwide Retail Stores, Microsoft
Microsoft is tackling Apple head-on by offering customers a retail experience that is less about shopping and more about engagement. By creating a flagship store that creates a direct connection to its customers, The Microsoft Store also has the potential to become a go-to destination for new technology similar to the Apple Store.
At $2,749 per square foot, Microsoft’s Fifth Avenue storefront will not be cheap. But if Microsoft wants to set itself apart from other computer brands, this store is the best way to create a centerpiece for the products their customers want to buy. It’s also a prime opportunity to steal some of Apple’s customers.
This is Perfect Timing for Microsoft
Microsoft is about to make a lot more money.
Microsoft doesn’t make as much money as Apple or have as many retail locations, but they do have some advantages working in their favor. Currently, the Apple Store has 257 locations in the U.S. and a total of 435 worldwide. While The Microsoft Store only has 58 locations in the U.S. and a total of 63 worldwide, they have 600 “stores-within-a-store” locations at Best Buy’s across the country. Microsoft products are inherently easier to purchase because of these numbers but that’s not the only advantage they currently have over Apple.
In case you haven’t noticed, Apple hasn’t been receiving a lot of good publicity lately. Despite breaking sales records, the company has been met with harsh criticism about bending iPhones, iOS 8 bugs, and security flaws. Combine this with a tax probe in Europe and top executives dropping millions of dollars’ worth of shares, and it creates the perfect scenario for Microsoft to swoop in.
With today’s announcement of Windows 10 and the Xbox One finally launching in China, there’s never been a better time for Microsoft to stake its claim on Fifth Avenue. Their new storefront may not be a glass cube, but housed inside Fendi’s old stomping grounds; it’s definitely ready to compete with Apple. We’ll just have to wait and see if more people want to take a picture of the Microsoft Store than the Statue of Liberty.
Do you think Microsoft will give Apple a run for its money on Fifth Avenue? Let us know in the comments below!
