Apple May Replicate Best Buy Concept at Target
Apple (NASDAQ:AAPL) may have plans to open new ‘store-within-a-store’ sales points in selected Target (NYSE:TGT) locations across the United States. The strategy supports regions which cannot support a full-fledged Apple store on their own.
Apple currently operates 245 own stores in the U.S. and has an existing ‘store-within-a-store’ arrangement at over 600 Best Buy (NYSE:BBY) locations styled as ‘Apple Shops’. It’s the obvious model for Target, a top retailer which began retailing iPods in 2002.
In October 2010, Target started selling iPads, becoming the third retailer to do so after Apple and Best Buy. A month thereafter, Target began selling the iPhone 3GS and iPhone4 in most of its stores.
Apple wants to expand the successful relationship with Target to include the Apple branded mini stores in order to continue growing sales in a highly competitive gadget market. The move seems to make special sense now that Apple is targeting lower price point products such as the iPhone 3G and possibly a cheaper tablet in 2012.
Here’s how shares of Apple and Target are reacting to the news:
Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $420.86, up $2.83, or 0.68%. They have traded in a 52-week range of $310.50 to $426.70. Volume today was 2,192,256 shares versus a 3-month average volume of 15,054,700 shares. The company’s trailing P/E is 15.20, while trailing earnings are $27.68 per share.
Target Corp. (NYSE:TGT): TGT shares recently traded at $48.79, up $0.28, or 0.58%. They have traded in a 52-week range of $45.28 to $56.44. Volume today was 1,160,105 shares versus a 3-month average volume of 6,149,080 shares. The company’s trailing P/E is 11.35, while trailing earnings are $4.30 per share.
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