In the wake of the combination of both earnings releases and strategic
announcements the business and CE trade press is full of slobbering
hyperbole about Apple’s position as The Most Amazing Company Ever.

Granted, the hyperbole is grounded for the most part on solid facts. Apple’s
3Q revenue of $28.57 billion, and a record net quarterly profit of $7.31
billion, for an Earnings Per Share of $7.79 is eye popping to say the least.

What’s drawn my attention today is the numbers being tossed around about
Apple’s retail operations. A couple of months back Needham & Co estimated
that the average sales per square foot for Apple stores is $4,406. For
anyone who’s been in retail, that’s a number that’s almost impossible to get
your head around.

This week Business Insider reported on Apple’s upcoming Grand Central
Terminal store, and based on estimated numbers from the flagship Fifth
Avenue location forecast an estimated $20,000 per sqft, for an annual
revenue of $460 million.

From a single retail storefront.

To put that into perspective, that’s more revenue that Western Canadian
Retailer Visions Electronics does, with 20 locations across four provinces.
It’s two thirds and one quarter, respectively of what US regional chains
Conn’s and HH Gregg do in a year. And that’s one store.

Put in simple terms that means selling 767,946 iPads.

I think my head just exploded.

Putting aside for the moment the truly remarkable nature of those
projections I’ve got a simple question:

What kind of compensation, both salary and bonus, can a store manager who
delivers $460 million in annual revenue expect?

Not only the revenue, but the inventory and expenses exceed the
responsibilities of many CEOs and company Presidents.

My back-of-the napkin wild-ass-guess is that, if it were an executive
position, it would be a total annual compensation (including performance
bonuses) of $1.5-3 million dollars a year. Even if it was half of one
percent of revenue it would still be $2.3 million a year.

However, I’d bet that it’s a lot less than that. Talking to the Advisors at
my local Apple stores, they all give off a weird, cult-like vibe that makes
me wonder if THEY PAY Apple for the privilege of working there. Inculcating
a culture of Pride Before Paycheck is a neat trick to pull as an employer.

Regardless, my question stands, and I’ve begun making inquiries because I’m
genuinely curious about what the answer is.