Apple V2 store refits claim another APR victim

Six-figure refit costs prompt Bath APR Farpoint to downgrade to Authorised status

One of the UK's longest-standing Apple Premium Resellers (APRs) has relinquished its top-tier status with the vendor after opting not to upgrade its store.

Farpoint has confirmed to ChannelWeb that its one APR store in Bath has stepped down to Authorised status because its dimensions do not match "V2" criteria and the cost of opening a new V2 store could not be justified.

Apple decreed that all APR stores must conform to the plush new format by the end of last month as it strives to improve the user experience in its partners' outlets.

But with each store refit costing more than £100,000, several smaller APRs have reviewed their strategies, including Square Group.

Farpoint became only the second UK firm to open an APR outlet in September 2006 and managing director Mark Hooper said he was disappointed that he had been forced to downgrade.

"The Bath store will continue, but not as an APR location," he said. "My store does not match the criteria Apple requires. It was a grade two-listed building and I can't change the windows."

Hooper said the case for moving into new premises and fitting them up with V2 fixtures, fittings and furniture – most of which are custom made – did not stack up from an ROI perspective, particularly since Apple now has its own store in Bath.

"We made a huge investment in the V1 store and to make a repeat investment in V2, the costs did not outweigh the benefits. I am disappointed as I have been a loyal Apple fan for 26 years, but life goes on."

Robert Peckham, executive director of the Mac Technology Association, suspected that Farpoint's decision to give up the ghost would be repeated at other APRs.

"Every time I talk to an APR boss – at least the ones that have fewer than five or six outlets – they are all having the same difficulties operating as an APR," he said.

But with Apple set to open direct stores in only a modest number of UK locations this year, including Plymouth and Leeds, Peckham said he suspected the giant is keen for its larger APRs such as Stormfront and KRCS to continue expanding.

"Whether Apple is supporting the big players, we cannot tell, but I suspect that that is the case. Oxford has been canned and I am not sure about their retail growth plans in the UK – maybe they will channel those funds back into the APR network."

The larger APRs – including Stormfront, which has 20 stores – are all known to be committed to the new V2 format. Some APRs have been given an extension of two months to finish refitting all their stores.