Greg Guenthner

“I give them two years before they’re turning out the lights on a very painful and expensive mistake…”

That’s a quote from a pessimistic analyst in a Bloomberg Op-Ed dated May 20, 2001 — just one day after Apple opened its first retail locations.

The arguments against brick-and-mortar retail are sound, for the most part. It’s an expensive proposition to open a retail location that could quickly become nothing more than a showroom for Amazon.com. And almost everywhere you look, old-school retailers are getting crushed as consumers opt for the convenience of online purchases.

Yet Apple has proven that if you do it right — and if your product line is good enough — retail can thrive, even in the tech space. Twelve years after its first foray into upscale malls in high-rent districts, Apple’s retail juggernaut brought in the sales. Apple makes roughly $6,050 for every square foot of store space. That’s more than twice high-end jeweler Tiffany & Co.’s $3,017 per square foot, according to consulting firm Retail Sails (via Forbes).

But the billion-dollar question goes to Google:

Can the king of search make retail work?

Google vs. Apple

Google topped $800 for the first time today. Over the past five months, it has separated itself from Apple, helping to lead the Nasdaq higher while Apple steadily slipped. Now rumors are swirling that Google is planning to open stand-alone retail locations — possibly as early as the holiday season.

Google stores could be a boon for the company. It’s already proven it can innovate (working prototypes of Project Glass and self-driving cars come to mind). But if Google can demonstrate the worth of its new innovations at retail locations to an endless supply of potential customers, a new period of growth could be in its future.

Don’t bet against them…

Greg Guenthner
for The Daily Reckoning

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

The One Word Every IPO Investor Needs to Know

Jonas Elmerraji

When a big company IPOs, investors can hardly contain their excitement. In a flash of exuberance, they throw money at a company they've already decided is worth something... even if the market hasn't made up its mind yet. Today, Jonas Elmerraji explains how one simple word can change the fate of every IPO investor. Read on...


5 Min. Forecast
How to Spend $5.5 Million on a War You Already Won

Dave Gonigam

Baltimore was abuzz this weekend with parades, festivities, tall ships and air shows... And it only cost $5.5 million of taxpayer money! Yes, Saturday marked the bicentennial of a critical moment in the War of 1812 - the battle of Fort McHenry. And if you know of a better way to celebrate a war, Dave Gonigam is all ears...


The First Step to Self-Publishing Your Book

Chris Campbell

Want to self-publish a book? You can't afford to miss out on this series. Chris Campbell promises to deliver a step-by-step guide to self-publishing that leaves nothing out. Today, you'll learn how the most successful self-published book got to where it is today - and how you can use the same strategy to make your own book a success. Read on...


One Commodity Worth Buying Right Now

Greg Guenthner

While most of the commodity sector is getting beaten down right now, there's one commodity that's been on an uptrend since early 2013. And you're in luck... It's on a two-week dip in price right now, that could turn around any minute. Today, Greg Guenthner explains why this could signal a solid buying opportunity. Read on...


3 Things Driving the Biggest Investment Story of the Decade

Ray Blanco

Forget about the new iPhone or the Apple Watch. They may create a huge frenzy right now, but they don't have any staying power. In fact, as Ray Blanco points out, these new products are just fads, especially when compared to one incredible story that's poised to be the biggest technology trend of this decade. Read on...