Microsoft scoops ex-Apple talent for its retail plan

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Following last week’s revelation that Microsoft plans to call Apple out on the high street with its own chain of retail shops near Apple’s own comes yet more news claiming Redmond’s hired in a little former-Cupertino talent to help it make its pitch.

Those revered Apple-watchers at IFO AppleStore have the skinny, claiming, “A key figure in achieving Apple’s ground-breaking retail store concept is now consulting with Microsoft on that company’s retail stores.”

As the story goes, twenty-year veteran ex-Gap VP of real estate strategy George W. Blankenship has jumped ship from Apple, where he has been since 2000, in order to help the Windows maker open high street doors.

At Apple, Blankenship helped Apple’s senior VP retail, Ron Johnson, in placing stores at those really good high-traffic locations thought partially responsible for Apple’s success.

He joined another firm, Vectiv Corporation, a provider of store lifecycle management enterprise software, as Senior Advisor in 2002. At that time he said, "I personally witnessed the benefits of using technology to maximize store procurement at Gap.Vectiv has developed a solution that is more flexible, more robust, and provides a much lower total cost of ownership than the one we built.

"Due to overall costs and implementation time, outsourcing the management of this technology is a better decision than building it in-house.Make no mistake, retailers must leverage technology and have a clearly defined strategy with an efficient opening process in order to succeed in today's retail market." Erm, OK...

Let’s not mention the other part of Apple’s success, the products. That would be too much. Microsoft has products, too - if you like music it even has the Zune.

What Microsoft’s new “consultant” has of course is deep knowledge of how Apple’s Johnson ticks. “Blankenship was among the earliest of Apple’s retail store employees, arriving shortly after Johnson. He was there when Johnson began to clarify his vision of how the stores would operate and what they would look like, and where they should be located,” IFO AppleStore explains.

Johnson has previously said for the stores to work they need to be placed where customers “live their life”. In other words, where they worlk, shop, live and play, the report observes.

One key element to this high street test - Laptop Hunter ad or no Laptop Hunter ad - is success. And we have a hunch that while Microsoft’s investors allow the company to throw money at problems, it’s the Apple investors who’ll come out tops, as the company continues to make strategic, well-aimed investments in products, software development and store locations.

Will Microsoft’s stores end up being another of its heavily subsidised marketing ploys? And can even that company sustain the cost of only partially successful shops on some of the world’s most expensive shopping streets?
 

Comments (13)

Uh, actually the location of the store has little to do with the success Apple has enjoyed in retail. Location is important, but saying the stores should be where people "live their life" is just a way of saying they should be at the best mall in town and not anywhere in the boonies.

The success of Apple's store is the (at the time) revolutionary layout, the staff, the policies and above all the product. I predict they just copy the layout wholesale and hire a lot of annoying sales reps.

Yeah, I agree. Microsoft will do its usual photocopy job using its wobbly Xerox that is has used since 1989. The stores will be open, airy, and full of rather bland machines with the specs jogged up through the roof so that they can play Minesweeper without causing a system hang.

Really, I know Microsoft is trying to bury the Vista Disaster, but going ahead to copy Apple in every single way in order to 'stimulate success' is just childish. And I imagine that is all they're trying to do.

You gotta spend money to make money. In this case Microsoft is spending money to look like the cool kid next door. Yes, they'll make money, but seriously, why? Spend that money on making W7 good. And drop those stupid basic/home/premium packages. Give everyone the real deal. If you're gonna copy Apple, you may as well copy the good things.

I'd say the success is thart there's actually a place where one can go and easily find apple products displayed and for sale like any other electronic goods. Before the Apple stores you'd be relegated to buying from some obscure and overpriced apple vendor or buying online. You'd be lucky to find a store that stocked Apple computers and if they acually displayed them onsite then that was nirvanna.

Umm... I don't really see the point of these stores. Windows is so ubiquitous that the product selection in a "Microsoft" store will no doubt look identical to any other Circuit City, Best Buy or generic computer store.

All these stores will do is cannibalize the sales of the generic PC & peripheral market. If I were Best Buy, Toys R' Us (Xbox) or even some of the OEMs (Dell, HP, etc.) I'd see this as a hurting my bottom line in the short and long term. Why? The only reason I would buy a Dell (for example) in a Microsoft store is if it's available at a cheaper price than the identical model located at the Best Buy on the other side of the mall.

Umm... I don't really see the point of these stores. Windows is so ubiquitous that the product selection in a "Microsoft" store will no doubt look identical to any other Circuit City, Best Buy or generic computer store.

All these stores will do is cannibalize the sales of the generic PC & peripheral market. Forget Apple, if I were Best Buy, Toys R' Us (Xbox) or even some of the OEMs (Dell, HP, etc.) I'd see this as a hurting my financial bottom line in the short and long term. Why? The only reason I would buy a Dell (for example) in a Microsoft store is if it's available at a cheaper price than the identical model located at the Best Buy on the other side of the mall.

Gateway country...

I really would love to see what the vision is here. Its a huge waste of retail space and money to sell windows software, especially when you can walk into any Bestbuy, Walmart, etc and buy them.

Unless its a Zune store, or MS has decided to sell hardware now, I dont really see the sense in this except for marketing. And its an overly expensive Marketing model if thats what it is.

Apple is using their stores as a marketing tool as well, and it has paid off. But one of the reasons is you cannot buy Apple Hardware (computers) at many other places. Sure Bestbuy is starting to carry some Macs and Walmart and BB both have iPods, but that is recent. Apple stores actually made profits on what they sell as well as being a marketing message.

The picture leading this story made me throw up in my mouth a little bit.

Ballmer is out of his mind. He needs to be fired from Microsoft. This is a totally unnecessary investment of investors money. Microsoft has 85% to 90% of the market share. It needs to build on it's core products rather than focus on perceived threats from Apple a company that has 7 to 8% market share. This will be a total failure. Just a stupid idea really.

It's interesting that his(blankenship's) time at Apple was between 2000 and 2002, because at the time he left Apple didn't even have 50 stores open yet. He left the company 7 years ago, so how much info can he really have on how they do business.

Whoa, Dude! Check out that picture!
It's one of those new Microsoft stores.
No customers... and, apparently, hiding employees!
Look! Zunes!
No, wait! Come over here! Keyboards and mice!
Look over there! X-Box's!
And all this crap is dirt cheap!
I have a feeling this will be a common picture of a
Microsoft store.

 Whoa , Dude! Look at all those MacBooks and iMacs at the Microsoft store!

 Semper Fidelis

Most Mac users do not have this delusion that Apple invents everything like you think they do. They are however usually the first one to get it RIGHT and THAT's what everyone copies. Trust me Windows 1z0-051 would look nothing like it does now (it wouldnt even be called Windows) if it weren't for MacOS. Look how many phones now look like and try to emulate the behavior of the iPhone.

So you can stop trying to convince us Apple doesn't invent everything, we know.

And I bet 100 bucks that Microsoft stores will take design hints from Apple stores when the truth is if Apple had no stores, then Microsoft stores would probably look more like Radio Shack than what an Apple store looks like.