Could Detroit Be Close to Getting an Apple Store?

Detroit Free Press

Dan Gilbert predicts that Detroit will finally get an Apple Store within five years.

Could Downtown Detroit be close to nabbing the holy grail of retail stores?

Businessman Dan Gilbert recently said he anticipates seeing an Apple Store in downtown within five years.

“Based on information I know, I would say it’s more likely than not to happen,” Gilbert told the Free Press last week. There already are four Apple Stores in southeast Michigan — but none in the city of Detroit. Apple stores are highly coveted because they attract customers from many miles away and have been shown to drive up sales at other nearby businesses. They can also be magnets for other big name retailers to come and set up shop. “If you get Apple, you will get a lot of other names — restaurants, retail, clothing,” said Ken Dalto, a Bingham Farms-based retail analyst and management consultant. There were 259 Apple stores in the country last year and 437 around the world. An Apple spokesman declined to discuss the selection criteria for its locations or the possibility of a Detroit store, but he said the company has never closed a store because of poor sales. Detroit-area retail experts say that Apple generally puts it stores in high-trafficked malls and busy retail streets. Five years ago, it was all but inconceivable for Apple to put a store in downtown Detroit. But much has happened since then.

A few reasons why Detroit could indeed have an Apple store by 2020

• Recent increases in foot traffic, market-rate apartments, new restaurants and unique retailers such as the John Varvatos shop have changed downtown’s market dynamics.

• There are more workers in downtown than five years ago — especially those under age 50 who savor the newest Apple gadgets.

Some reasons why Detroit doesn’t have one right now: 

• There are already four Apple stores in southeast Michigan stores: Somerset Collection in Troy; Twelve Oaks Mall in Novi; The Mall at Partridge Creek in Clinton Township and Briarwood Mall in Ann Arbor

• Detroit still doesn’t have enough shoppers on the street — especially on weekends.

“There’s a heck of a lot more activity than there use to be, but we’re still not a viable 24-hour downtown,” said Jim Bieri, a principal at Stokas Bieri Real Estate. “We’re making strides, but we’re not there yet. Could we be there in five years – yes.”