Apple Inc AAPL will continue to scale up its global retail presence as physical stores help create a connection with consumers, a company executive told Germany's Funke Mediengruppe (via Bloomberg).
What Happened: Despite a growing preference to buy online during the COVID-19 pandemic, the iPhone maker sees merit in adding more physical stores, Deirdre O’Brien, senior vice president of retail and people at Apple, told Funke.
The Cupertino, California-based company runs about 500 Apple stores globally of which about 100 are in Europe.
“On our online site people can learn a lot about the products; in a store they can touch them and get a feel for them,” O’Brien told Funke. “We intend to add more stores.”
See Also: McDonald's To Close Hundreds Of In-Store Walmart Eateries
Why It Matters: The COVID-19 pandemic has put pressure on a number of U.S. retailers that were already struggling from higher rents and the growing shift to online buying. Some of the iconic American retailers were forced to declare bankruptcy after last year amid diving sales and rising debt. These included J.C. Penney, Neiman Marcus, and car rental company Hertz Global Holdings HTZ.
See also: How To Buy Apple Stock
Apple’s second-quarter revenue jumped 54% to $89.6 billion helped by strong iPhone sales, including record contribution from the Services segment and a strong showing in the key Greater China region.
The tech giant has announced an investment of about EUR 1 billion ($1.2 billion) in Munich to build a center for computer chip design.
Price Action: Apple shares closed 0.53% lower at $124.61 on Friday.
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