Product1 publisher2 min readPublished
Apple gave a merchandiser fifteen months to open its first two stores
Ron Johnson ran merchandising at Target before Steve Jobs hired him to build Apple's stores. His new book describes a customer encounter staged by a merchant, with inventory management as one job on a list of ten.
The Product Desk · Product desk

What happened
- Unhappy with how Macs were positioned in traditional computer retail stores, Steve Jobs decided in 1999 that Apple should open its own, and brought in Target's merchandising vice president Ron Johnson to lead it.
- Johnson started at Apple on February 1, 2000, and the first two stores opened in May 2001, after the team built a full-scale store mockup in a Cupertino warehouse.
- Shop Different: How Retail Revealed Apple's Genius, written with Zander Nethercutt, is out on Tuesday, September 22, and details the first stores' weak early performance.
- Three retail chiefs followed Johnson: John Browett from the British electronics chain Dixons, Angela Ahrendts from Burberry, and longtime Apple executive Deirdre O'Brien.
- Johnson left Apple to become chief executive of JCPenney, and the book recounts his inability to turn the department store's fortunes around.
Compiled by The Product DeskSomething wrong?How this is made
Why it matters
- decision Anyone staging a storefront, a signup flow or a support desk is making the choice Apple made in 2000: put it under someone whose job is arranging what a customer sees, or under someone measured on how fast customers get through.
- constraint On Johnson's account the first stores were weak before they were successful, so a team that evaluates a new point of contact on its first quarters has already decided the answer.
- cost Treating the merchandising hire as the cause of the outcome did not work for Johnson at JCPenney, so an operator copying this should account for the context as well as the resume.
Jobs' framing of the job, as Johnson recounts it in the book, was a list. "What are the ten things you need to do well?" [10] Inventory management was one of them. Johnson said the team that managed it was led by Deirdre, who was involved with the stores before the first one opened [11]. Operations was one item out of ten, under a merchant who had come from Target and, before that, the department store Mervyn's [2][20].
Fifteen months separated Johnson's first day from the opening of the first two stores [5]. He proposed the name for the in-store support counter, "Genius Bar", and the book covers Jobs' initial reaction to it [19]. The stores performed weakly at first [8]. The article does not include sales figures for that period [21].
Asked whether Apple retail has stayed true to the original vision since he left, Johnson told MacRumors, "You know, really, honestly, I do. I'm very impressed." [13] He said the stores went through "a little a difficult period after I left" before they were "fulfilling, fabulously well, the initial mission and vision we had for the stores" [12].
On the chiefs who followed him, Johnson said, "You know, I was the first retailer at Apple. And I built the initial team and, we relied a lot on other Apple departments, but fundamentally, I think Tim felt that he's got to find a retail leader to run the stores, right?" [14] He added that "he started out with an operations leader, but obviously that led to a pretty quick change" [15]. What Johnson counts as success now is Apple's attention to the quality, size and location of stores instead of the total count. He also counts its standard for the retail employees the interview calls "exceptional", some of them with the company for years [18].
The ten-item list transfers to smaller settings than a chain of stores. Ten things your point of contact has to do well, one owner's name against each. The list shows where the person who owns what a customer meets first sits in the org. If eight of the ten owners are measured on throughput, throughput is your design brief, whatever the roadmap slide says. The second test is time. The month you would shut the thing down falls either before or after the early weakness Johnson describes in the book.
What to watch
- Whether the published book puts numbers behind how slow the first two stores were to sell.
- Whether Apple keeps judging its retail estate on store quality and location instead of total count under Deirdre O'Brien.
- Whether Johnson names the retail chief he described as "an operations leader" in later interviews.