Green Mountain Coffee Roasters (NASDAQ:GMCR), sellers of Keurig coffeemakers and K-cup refills, has announced plans to open a retail location in a Massachusetts mall. Since the company has traditionally relied on other retailers to sell its goods for them, the move has some analysts chuckling. But Business Insider's James Brumley thinks the joke's on them, and that this new store could be the start of coffee's Apple (NASDAQ:AAPL) store.
The company has yet to release any details about the new store, but it's safe to say it will have a premium feel to it with an engaging environment full of pleasant aromas and coffee 'geniuses.'
Brumley points out that the coffeemakers Green Mountain sells aren't the cheap models you can pick up for $50. The low end of the spectrum starts at $109, while the higher end products go for almost $300. If customers are willing to drop that kind of money, they're looking for more than just a passable cup of Joe, and they'll take a little persuading.
Apple stores demonstrate this perfectly, Brumley said, since they account for $15.7 billion in sales, around 12 percent of the company's total revenue, and yet the same wares being peddled elsewhere can't touch those kinds of numbers. Apple's stores are just flat-out more convincing.
"It's not just the price point that lends itself to specialty shops, though," he added. "It's likely that Green Mountain Coffee Roasters will be able to shape its retail locations as a vanity-driven, premium experience, not unlike what consumers find at a Starbucks."
A store with the sleek persuasiveness of an Apple store and the feel good atmosphere of a Starbucks (NASDAQ:SBUX)? Now we're getting somewhere. Still, at this point there's no hard evidence of what exactly Green Mountain intends to do. But it does seem like a long shot that the company would set up one store in Massachusetts with no intention of expanding throughout the country.
"Green Mountain has learned a great deal from all the other companies that have thrown their hat into the retail ring, and the fact that it's doing it at all speaks volumes about the company's expectations," Brumley said
- See this Business Insider story
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