[*Joe*]

I just read today that Apple will be partnering with Tesco, a UK based supermarket who are one of the worlds biggest companies, operating stores throughout Europe, Asia and south america. Anyway, they agreed a little while ago to start stocking iPods, now they are going to being the roll-out of 300 Apple Zones, these will be seperate retail areas set aside in its stores to sell Apple products, the press release said they will stock Apple computers, accessories and iPods.
The 'zones' will be branded and designed like the current full size Apple stores, using the same displays and POS materials.
So basically it will be 300 mini Apple Stores opening in the UK over the next year!

[turbulentfurball]

Fantastic! I'm so there. Nearest Apple store is about 300 miles from me and I've never been to one.

Edit: Joe, Do you have a link to the full story? Google can only find stuff about the trial that took place in Jan, and not about a full roll out.

2nd edit:
Found it

[Dorian Gray]

This is pretty huge. Tesco has over 30% of the supermarket share in the UK (for Americans, it's sort of the Wal-Mart of the UK), and nearly everyone has a Tesco close to them. This will lift OS X's marketshare in the UK, no doubt about it.

[PKIDelirium]

Originally Posted by *Joe* POS materials.

Perhaps that should have been worded better?

[Mac+]

Apple really has to get into gear wrt China still.

[Robo]

That's an awesome idea. The whole store-within-a-store concept - I love it. It makes Apple products available while retaining the "premium" brand feel. I hope Apple partners with, say, Target (they practically have an iPod aisle already) to get iPods - and, more importantly, Macs - into towns that would never get an Apple Store. Like mine.

[Wyatt]

Originally Posted by Roboman That's an awesome idea. The whole store-within-a-store concept - I love it. It makes Apple products available while retaining the "premium" brand feel. I hope Apple partners with, say, Target (they practically have an iPod aisle already) to get iPods - and, more importantly, Macs - into towns that would never get an Apple Store. Like mine.

I think Target would be an ideal partner for something like this in the States. It's higher-end than Wal-Mart, but it's still accessible. I would much rather see something like this in Target, rather than in Wal-Mart or in a large-box electronics-only store like Best Buy. There's a Target in most important cities in the US, but it shouldn't lead to oversaturation, either. Apple Stores would still be distinct in their own way, but the Apple Zone at Target could contribute to a large marketshare boost in the States.

[mattf]

And clubcard points too!

Seriously, this is great news, if it happens. I'm getting serious Apple-porn withdrawl symptoms after moving back to Scotland....

Anybody seen the Milton Keynes store where the trial was taking place? If so, what was your impression?

[SonOfSylvanus]

BIG news indeed! If it indeed pans out, this will multiply Apple's exposure infinitely... I could never by anything Apple in Tesco though, nor much else. Evil supermarkets...

[thequicksilver]

I can't find a link for this, but I have read that this is going to be a really slow expansion, initially being a further trial in six more stores.

You can bet your life that most of them will be in suburban major cities. I hold no hope of seeing it here in Stoke any time soon.

[Windswept]

Originally Posted by *Joe* I just read today that Apple will be partnering with Tesco, a UK based supermarket who are one of the worlds biggest companies, operating stores throughout Europe, Asia and south america. [snip...] So basically it will be 300 mini Apple Stores opening in the UK over the next year!

Hey, Joe, *thanks* for posting this. Really.

Sounds like it could be time for me to buy more Apple stock - despite the high price.

And, yeah... about POS...

[turbulentfurball]

Originally Posted by Windswept And, yeah... about POS...

I don't get it. Point of Sale, right?

[Wickers]

Originally Posted by turbulentfurball I don't get it. Point of Sale, right?

Yes. In the retail world PoS == Point of Sale.

However, most people like it's other meaning... Piece of Shit.

[scratt]

Wicked... Tesco is in Thailand!!! Whooopeeeee!

[*Joe*]

lol, sorry about the confusion with POS, I only thought it meant Point of Sale, didn't even know it's other meaning.
The great thing about this, is the market that Tesco dominates in the UK is targetting the sort of customers who would not be 'traditional' apple market. Hopefully this will do great things for the Apple market share. And you never know - if it is successful, then Tesco may take it global?

[Windswept]

Originally Posted by *Joe* Tesco may take it global?

Well, exactly.

That's why I was so excited... NOT just for exposure in the UK.

The handwriting is on the wall.

This move *will* be successful. Tesco *will* take it global.

Like a landslide... an avalanche... a tidal wave... but in slooooow motion.

And Asia, with its gazillion people. Ca-ching! $$$$$$ Be still my heart.

Yipee-i-oh-ki-ay!

[turbulentfurball]

Correct me if I'm wrong here, but Tesco's international efforts are based on a smaller store format than the common 'Tesco Extra' here in the UK, so I think it's unlikely that this will go international. Certainly, Tesco's plans for market entry in the US are based on a much smaller store than the typical tesco in the UK.

[Windswept]

Possibly.

But why would Apple team up with a store that has international presence if there weren't plans to go global?

I prefer to enjoy my greedy thoughts for the future.

[Franz Josef]

Originally Posted by turbulentfurball Correct me if I'm wrong here, but Tesco's international efforts are based on a smaller store format than the common 'Tesco Extra' here in the UK.

Tesco's pretty variable (and flexible) outside the UK. Their central European stores can be very large (such as Bratislava). They've done a full year of in-country research in the US so I guess they know the market and if big will pay (and not upset Wallmart too much) then I guess they'll go large.

[Robo]

Seriously, though. I hope Apple tries this soon with Target in the U.S.

It just makes so much sense. Target and Apple go together like peanut butter and marshmallow.

[Fahrenheit]

Tesco are Lotus in Thailand AFAIK...

[kieran]

Originally Posted by Roboman .... Target and Apple go together like peanut butter and marshmallow.

...Like lamb and Tuna Fish?..

[Windswept]

Originally Posted by Franz Josef Tesco's pretty variable (and flexible) outside the UK. Their central European stores can be very large (such as Bratislava). They've done a full year of in-country research in the US so I guess they know the market and if big will pay (and not upset Walmart too much) then I guess they'll go large.

Thanks for the information. Sounds pretty encouraging to me.

I'm surprised they see the US as a viable market though. I would have thought we're already pretty saturated with retail outlets of all kinds - especially big box stores.

I wonder if they have some kind of marketing concept that would carve out a different kind of niche in the US.

I was more interested in their prospects for international expansion - especially as it might widen the exposure of Apple products to the masses; though I guess the US *is* a hugely affluent market for any retailer, and Apple stuff could benefit from increased exposure here as well.

I wonder how Tesco compares with Costco? I don't suppose Tesco is a 'wholesaler' type box store, is it? I wonder just how 'global' Costco's expansion plans might be - especially in comparison to Tesco's.

[turbulentfurball]

Originally Posted by Windswept I wonder if they have some kind of marketing concept that would carve out a different kind of niche in the US.

Tesco are planning a number of small convenience stores in the US, not large Wal-mart style stores. Link

Leahy said the company had developed a new model for its U.S. stores, based on the smaller "Express" store concept that has proved successful in Britain. The first stores will open on the West Coast in 2007.

Wal-Mart Chief Executive Lee Scott has called for a competition probe into Tesco's dominance, but Tesco has evaded investigation by rolling out the smaller "Express" stores.

And the bad bit:

Analysts pointed out that British companies have not had a good track record of breaking into the U.S. supermarket sector.

I did a class on this very subject last week at uni

[*Joe*]

In response to the point about tesco store formats abroad, it is only in the USA that tesco will soley operate convenience stores.
They operate hypermarkets in china, turkey, hungry, malaysia and japan, and are one of the biggest retail employers in the world, if they were a country they would be a top 10 economy, every £1 in £7 in the UK is spent at a Tesco or subsidiary company!

Just out of interest has anyone been to one of the 6 trial stores? (i think one is in milton keynes)

EDIT: There is some more information here: http://www.macnewsworld.com/story/48488.html

Where a Tesco manager is quoted as saying that the trial is going very well.

Finally, you can see some pictures of the stores-within-tesco here: http://ifoapplestore.com/stores/tesco_display_area.html