FLAGSHIP FLASH: Apple To More Than Double The Size Of Its 5th Avenue Flagship

We have known for months that Apple was planning a major renovation for its busiest 24-hour flagship store on Fifth Avenue, but now comes word that the refresh will include a doubling of the store's size from 32,000 to over 77,000 square feet —and it's going to take a while. Apple's current store incorporates what was once a below-grade open-air plaza in front of 767 Fifth Avenue, better known as the General Motors Building. one presumes that the renovation will capture basement, or possibly sub-basement space that is beneath the GM Building itself, which should be an elaborate feat. None of the changes are expected to be visible from the street, and the view of the signature "Cube" entrance should remain unchanged. As earlier reported, Apple will be temporarily taking over a substantial part of the former FAO Schwarz store in the GM Building along West 58th Street (pictured above) while renovations proceed, but it is expected to be there until well into 2018, meaning that it will be a while before the space's next designated tenant, Under Armour, is able able to take over and build out its own store.

(Commercial Observer)

IN-STORE SCORE: Macy's Will Debut A New Apple Store Next Month

With new iPhones and Apple Watches on the way comes the news that Macy's will open Apple's first full in-store shop at its Herald Square flagship next month. While 180 additional Macy's locations will be selling Apple Watches, this will be the tech behemoth's first in-store shop inside a U.S. Department store, and it will also carry iPhones, iPads MacBooks as well as other items and accessories for a more complete brand presentation. According to WWD, the shop will be set up on the main floor of the store's Broadway side which is devoted to makeup and accessories including in-store boutiques from Gucci, Louis Vuitton and Burberry. While Macy's Herald Square is known to have several leased in-store departments like Vuitton and Gucci, it is unclear at the moment whether the new shop will be operated by Apple or Macy's itself, but it could serve as a test for similar arrangements in other prominent flagship locations in the chain such as Chicago or San Francisco, or perhaps as a model to be adopted by other retailers as well. In recent months, Macy's has been struggling to right-size its sprawling fleet of stores cobbled together from several different department store chains as the result of a series of mergers over the past couple of decades. The luster from Apple's desirable product offerings may help the chain to attract new customers as it tightens up its retail footprint.

(WWD)

TURF BATTLE: Is Under Armour Fighting Nike And Apple For Space In The GM Building?

Why, just last week we wrote about the potential battle between Apple and Nike for the former FAO Schwarz space on the 58th Street side of the GM Building (pictured above), and now the status quo has changed as another player, Under Armour, appears to have entered the fray. According to Crain's, the burgeoning performance athletic-wear company is in talks to take over at least part of the space that the legendary toy store has left vacant. Does that mean that Under Armour will now be nestled among Cartier, Apple and Bergdorf Goodman's Men's store which will be its neighbor across the street?
Reports say that the former toy palace with 13,ooo square feet on the ground floor and 40,000 on the second level is ultimately likely to be divided, and we don't know if Under Armour may be in talks for the whole thing or part of it, though if Nike is still looking to get into the space after its lease extension on 57th Street expires, it is unlikely that it would accept Under Armour as a direct adjacency.
Cartier's store on the 59th street side of the GM Building is technically temporary, and though there has been talk of the jewelry company holding on to it even after it's landmarked townhouse on Fifth Avenue is finally restored and renovated, it could also be in play within the next year or two.
The real question here, though, is whether or not Under Armour belongs in the GM Building amongst rarefied luxury flagships as well as the only electronics company that approaches luxury brand status? Nike, for all its prosaic qualities, has a coolness factor that allows it to be included amongst the avant-garde designers curated at Comme des Garçons' Dover Street Market. We could see it moved to the GM Building, but Under Armour? Does it really have that level of prestige?
We tend to think no, not that that has any bearing on whether or not a lease will be negotiated and signed. It does, however, remind us of the early 1990s, when there was a multi-level Warner Brothers Studio Store on the corner of 57th and Fifth, and a few blocks down Fifth Avenue, shoppers found an equally lavish Walt Disney store. Retailers in the neighborhood griped that the stores were degrading the area's prestige level (though there were fewer complaints when Nike took over the beleaguered space that was originally Bonwit Teller's replacement store). Eventually, those two cartoon palaces became Louis Vuitton and The Polo Store, and all was once again right with Fifth Avenue. Will the same sentiments follow Under Armour to the GM Building. The brand seems at home with a huge flagship on lower Broadway in SoHo, but will is be as comfortable a fit on one of New York's most luxurious corners?

Nike may get muscled out of prime GM Building retail space (Crain's)

BRAND PALACE BATTLE: Are Apple and Nike Fighting Over The Old FAO Schwarz Space?

Most recent reports are telling us that this year has brought tough times for retail real estate with shopping falling short of projections for the past couple of seasons, but in Manhattan, the right space is still in demand.
Take the now long-empty Fifth Avenue space in the GM Building vacated by FAO Schwarz last year (pictured above). for several months now, we have all been under the impression that Apple will temporarily take over the space while it renovates its 24-hour flagship store underneath the building's plaza, but now we are told that the tech company is now looking to add all or part of the above-ground store as permanent space. This comes on the heels of reports that had Nike negotiating for the space, but it has also been reported that the sneaker icon has renewed its Niketown lease on East 57th Street through 2022. While they may still be interested in the GM building space, ultimately, the building's owner, Boston Properties, will have to decide if it is worth it to keep the space empty for Nike for a few more years, or to make a deal with Apple which is said to be balking at the $2,700 to $4,450 per square foot asking rent for the space and feels it deserves a break since it has drawn such attention and prestige to the location with its store. Will Apple need all 61,000 square feet in addition to its underground space. How will they differentiate merchandise for two side-by-side stores? Will there be an underground passageway to connect the two separate spaces, or will some other mega-brand swoop in to take over the still-prestigious retail space out from under both Apple and Nike's noses?
We should know these answers soon —or maybe not. Essentially, we will hear it when we hear it.

Apple likely to expand at GM Building on “temp” basis (TheRealDeal)

TECH CHIC: Apple Hits The Met As The Costume Institute Plans A Tech-Inspired Show For Next Spring

While the next Costume Institute exhibition isn't expected until next month, The Metropolitan Museum of Art has already announced its Spring 2016 blockbuster show, manus x machina: fashion in an age of technology (lower case specified). The exhibition will explore how designers are negotiating the impact of all sorts of technological advances on the still artisanally-based business of creating high fashion.
In a statement announcing the upcoming exhibition, Andrew Bolton, Curator in The Costume Institute explained, "Traditionally, the distinction between the haute couture and prêt-à-porter was based on the handmade and the machine-made, but recently this distinction has become increasingly blurred as both disciplines have embraced the practices and techniques of the other. manus x machina will challenge the conventions of the hand/machine dichotomy, and propose a new paradigm germane to our age of digital technology."
To support the exhibition, the Met has landed the perfect major sponsor, Apple, who will be represented at the Met Gala that always launches the show by its celebrated Chief Design Officer Jonathan Ive who has his own point of view on the marriage of design and technology, "Both the automated and handcrafted process require similar amounts of thoughtfulness and expertise. There are instances where technology is optimized, but ultimately it's the amount of care put into the craftsmanship, whether it's machine-made or hand-made, that transforms ordinary materials into something extraordinary."
The exhibition will include examples dating from the 1880s to designer offerings from 2015 that show the impact of technology on fashion starting with the invention of the sewing machine up to 3-D printed clothing which will be demonstrated in workshops where visitors will see garments being created. Like recent spring Costume Institute exhibitions, manus x machina will utilize the entire gallery space of the Anna Wintour Costume Center as well as another section of the museum, in this case, The Robert Lehman Wing galleries. A long list of designers featured includes big names like Chanel, Alexander Wang and Prada as well as technical innovators of the past like Mary McFadden, Issey Miyake, Pierre Cardin and Paco Rabanne as well as contemporary envelope pushers like Iris van Herpen (dress, pictured above) and Rei Kawakubo of Comme des Garçons.
And, oh yeah, there's the big Met Gala.
In addition to Apple's Jony Ive, the ever fascinating party will be co-chared by Anna Wintour, actor Idris Elba and general media phenomenon Taylor Swift (this was bout to happen, obviously). Miuccia Prada, karl Lagerfeld and Louis Vuitton's Nicolas Ghesquière will serve as honorary chairs, so look for lots of celebrity guests to be wearing in Prada, Chanel, Fendi and Vuitton.
The exhibition is set open on May 5, so make your plans early. The Museum is offering advance ticket purchases to avoid long waits. Recent costume Institute shows have wildly exceeded expectations even without singular designer subjects. the recent China Through The Looking Glass broke records and featured a spectacular exhibition design that manus x machina is sure to top.
In the meantime, you have only a little over a month to wait to see the Costume Institute's next show, Jacqueline de Ribes: The Art of Style, which opens on November 19th and runs through February 21st.

WATCH WATCH: APPLE WATCH Meets HERMÈS For Its First Collaboration — Updated With Details

Apple's new product announcement event is still going on as we type this, but the biggest fashion news for the tech giant was pushed to the front of the agenda as its first Apple Watch collaboration was announced with none other than the most luxe of the luxe, Hermès.
Is that exclusive enough for you?
This was a development that was conspicuously not bandied about by the tech blogs which have been breathlessly reporting on rumored product developments for the past few weeks (giant iPad Pro with high tech pencil stylus confirmed), so it was a genuine surprise.
The Apple Watch Hermès will be available in October at select retailers. it comes with a classic single strap, signature double tour (see image above) or wider cuff strap, all with a customized Hermès watch face. Perhaps this is the push that was needed to get the Apple Watch into real luxury players like Barneys and Neiman Marcus. So far we have no price info yet for the watches, but stay tuned. We will update as soon as more information is released.

UPDATE:
Now that Apple has updated the Apple Watch page, we can offer some more specific details about the new collaboration.
For starters, these are emphatically not separate bands for individual purchase as has been reported by some outlets, but only sold with Apple Watches in polished stainless steel and a custom Hermès face that will only be available on these models. Here are the prices for the three styles:

Double Tour in 38mm with four band colors: Fauve, Etain, Capucine, and Bleu Jean
- $1,250
Single Tour in 38 or 42mm with Fauve or Noir bands. Capucine band only in 38mm
- $1,100 and up
Cuff in 42mm with a Fauve band
- $1,500

The Cuff style has a cut-out in the back of the watch to allow the heart rate sensor to be in contact with the wrist. So far, we do not know if versions of the band can also be purchased with the gold Apple Watch Edition, but it is not listed as an option on the site.
As for stores that will be carrying the watch next month, there are only 17 North American retail outlets listed including Apple Stores in Eaton Center and Yorkdale in Toronto, Aventura and Miami Beach in Florida, The Grove in Los Angeles, Palo Alto, San Francisco and Santa Monica. Hermès boutiques to be selling the watch include Beverly Hills, Miami and San Francisco. The only third party retailer listed so far is Maxfield in Los Angeles. In New York, the watches will be available only at Hermès on Madison Avenue and the Apple Stores on Fifth Avenue, Prince Street in SoHo and Broadway on the Upper West Side.

After the jump, click to enlarge some official images of the three styles

WATCH WATCH: Reservations For In-Store Apple Watch Purchasing Start Today

Concluding one of the most excruciatingly protracted product rollouts we have ever witnessed, Apple has finally opened up its reservation system for making Apple Watch purchases in its U.S. stores. Created to avoid the outsized queues of shoppers clamoring to buy the coveted timepiece on a first-come-first-served basis, the system now allows customers to choose a model on the Apple website and then choose a store based upon availability along with a designated time to stop buy in pick it up in a specially designed paper bag. While the watch has been available to be shipped directly through Apple for a few weeks now, buyers would have generally had to make the purchase before seeing the item in person and would also have been precluded from paying in cash if they so desired. Customers will now be able to walk out of a store with them starting today. Shoppers will be required to bring I.D. and will be able to try on the model before making a final decision and purchasing in the store.
The new system should mollify the amazingly cranky neighbors of the newest Apple Store at 74th Street and Madison Avenue who are still fearful that the store will disrupt their peaceful neighborhood with long hours and even longer lines of customers on the sidewalks there for product launches. The real test will come in September when the next iteration of the iPhone will presumably become available, but by then we are betting that the furor over the new store should have died down.

Apple opens up US Watch retail reservations, shoppers get unique bags (AppleInsider)

MINOR RELOCATION: Apple To Take Over FAO Schwarz Space During Flagship Renovation

The Apple Store pictured above will temporarily move into the building behind the cube later this year.

While we don't yet know what will ultimately become of the FAO Schwarz retail space in the GM Building after the iconic toy store moves out on July 15th, we now know that the next immediate tenant will be the Apple Store which is reportedly taking over the place while its main flagship store underneath the plaza in front of the building undergoes an extensive renovation. The news was disclosed by Apple retail chief, senior vice president Angela Ahrendts to the Associated Press in an interview promoting the company's newest outlet set to open tomorrow on Madison Avenue. Though that new store will contain the company's signature minimalist wooden tables and fixtures, the building around it is reported to be a meticulous restoration of the former U.S. Mortgage & Trust building which will include chandeliers re-produced from vintage photographs and the original vault converted into a private shopping area —fitting for the store located in the neighborhood most conducive for selling the pricey golden AppleWatch Edition.
But back to Fifth Avenue. The famous store with the "cube" is included among the roughly 20 U.S. Apple Stores set for major renovation as they have outgrown their spaces since the introduction of the iPhone and other new products that have transformed the company's offerings. Exactly when the Fifth Avenue store's renovation will begin or how long it will take is unclear, though it is likely to start as soon as the FAO Schwarz space can be converted to Apple's temporary requirements. When that happens, the GM Building's Fifth Avenue retail spaces will be entirely devoted to temporary stores with Cartier on the northern corner, waiting for its own flagship a few blocks downtown to finish its extensive revamp, and Apple on the southern side. While the famous "cube" entrance is expected to remain, it sounds like the rest of the store will be dramatically updated. Whether or not the temporary store will maintain the flagship's 24-hour schedule is also unknown at the moment, but Apple is uniquely fortunate to be able to take over a large high profile location only steps away so it can continue doing business at it's highest volume retail outlet without any interruption.

In With The Old: Apple Restores Former Bank For New Store (AP)

TODAY IN LOST CAUSES: Delusional Man Files Lawsuit To Stop The Madison Avenue Apple Store

Well, you can't please everybody.
Since it was discovered that an Apple Store was opening on the corner of Madison Avenue and 74th Street, (pictured at right under construction) a group of neighborhood residents has been protesting that new establishment would destroy the genteel character of the neighborhood and create disruptive lines with the company's periodic product launches. Last week, 89-year-old Herbert Feinberg, a longtime neighborhood resident and the leader of this NIMBY protest, filed suit in Manhattan Supreme Court to prevent the store's opening which is scheduled for this Saturday, June 13th. Court papers state, "Madison Avenue is one of the great New York City Streets ... (and local residents) are opposed to the congestion and commercialization of the neighborhood that the store will bring,” as the suit attempts to prosecute complaints about the upcoming store such as the "massive increase in pedestrian traffic" it is expected to bring. According to Feinberg, the neighborhood is only meant for small luxury boutiques and galleries. Despite the measurable drop in traffic since the Whitney Museum at Madison and 75th decamped for the Meatpacking District, The Metropolitan Museum of Art which is planning to make use of the building in the coming months, is expected to make up the shortfall with even larger crowds. The suit also refers to the over 400 signatures Mr. Feinberg has collected to block the store as the leader of group called "Saving the 74th Street Residential Neighborhood." Of course, it has been widely reported that merchants on Madison Avenue above 72nd Street are suffering from the drop in traffic since the Whitney's departure, and are actually hoping that the Apple Store will do exactly what Mr. Feinberg is predicting it will in bringing shoppers to the area. 
According to the Daily News, Mr. Feinberg has taken it upon himself to personally file suit because the city officials responsible for such zoning issues had ignored his pleas to save the neighborhood from this retailing scourge, which would actually suggest that they are ignoring frivolous and unreasonable complaints, hopefully in favor of dealing with more pressing issues. Though The Shophound is not a legal expert, it is hard for us to imagine that any judge not dismissing this case outright , especially since Apple claims to have specifically conceived the store to be in keeping with the neighborhood's hours and character and no actual laws or zoning rules appear to have been violated. It doesn't seem like this will end well for Mr. Feinberg who is likely to have accomplished no more than confirming the stereotype of Upper East Siders as self centered snobs.

Upper East Siders seeing red over new Apple Store opening in neighborhood (NYDailyNews via Gothamist)

WATCH WATCH: Want To Buy An Apple Watch At The Apple Store? Wait Until June, Maybe July

Basically, there is no product launch this season that can compare with the Apple Watch.
It has captured the imagination of the gadget-buying public like nothing else, and it though it will start shipping next week for an April 24th delivery to lucky early bird pre-orderers, we won't see it in stores for at least a couple of months. Anyone who thinks that they can line up outside the city's various Apple Stores to get first dibs will be sorely disappointed come next Friday, and if you see someone trying, you are now officially allowed to taunt them and throw things at them.
Well, maybe not throw things, but feel free to tell them not to waste their time.
No less credible a source than Angela Ahrendts, Apple's head of retail, sent a memo to employees this past week informing them that there would be no stock available for walk-in customers on the 24th, and there probably wouldn't be any until June, possibly July —which is why the company has been previewing the new line in stores before it becomes available to purchase in person. She writes in the memo, reprinted by The Telegraph,

"It's important to remember that Apple Watch is not just a new product but an entirely new category for us," she wrote. "There's never been anything quite like it. To deliver the kind of service our customers have come to expect — and that we expect from ourselves — we designed a completely new approach. That's why, for the first time, we are previewing a new product in our stores before it has started shipping."

Supplies are reportedly so tight that pre-ordering after an in-store examination may be the only way to buy the watch from an official outlet for months to come, perhaps until it is time to launch the inevitable Apple Watch 2 .One result of this will likely be discouraging the alleged straw purchasers who clogged lines outside stores last Fall when the iPhone 6 launched. It is widely believed that these customers, willing to wait in extensive lines repeatedly, were diverting their purchases to international gray markets where the phone was not yet available. Ahrendts, however does not make mention of this in her memo, rather stressing that a unique new product needs to be rolled out in a slow and controlled manner. There is also no suggestion that this will become the new standard procedure for other launches, so when the presumed new iPhone (6S? 6C?) is released this fall, we can reasonably expect to see a return to the familiar sight of lines of customers sweeping down the sidewalks.

Apple Watch won't be available in Apple's retail stores until June at the earliest (AppleInsider)