Andrew Machado

Dollars per square foot, vendor relations, and planograms were the story of my summer. I lived at Apple Computer in Cupertino for 12 weeks during the summer and was exposed to every facet of the retail industry.

Apple burst onto the scene in 1976 with the world's first personal computer, and until 1998 everyone figured Apple was going to go out of business. Co-founder Steve Jobs returned in 1997 and Apple reinvented itself with the launch of the iMac, an all-in-one personal computer. Fast forward to today and Apple is a retail powerhouse with 63 stores, an online Web store, and continues to release innovative products every year, such as the popular mp3 player, the iPod.

During the summer I worked with the merchandising team that is in charge of ordering products, negotiating the margin on products, and laying out every inch of an Apple Retail store. It was fascinating to see the tiny details a team of six people can discuss for hours. From the position of a CD burner to the layout of a back-to-school setup consisting of a Web-cam and a computer. The countless hours they spend calculating what products should go on which shelves and what products should go to each location is what makes the stores successful.

During my internship I was able to make a big impact by calculating the dollars per square foot for every product Apple sells in its retail stores. With my data the team was able to make better decisions as to how many facings each product should have on the shelves. Before my internship began, the team relied on gut instinct and sales volumes to make decisions. In addition to the calculations, by about week 8 of my 12 week stay I had taken over planogram duties. I was in charge of all software placings in all 63 stores! It was an incredible feeling to be so important to an organization that did over $100 million of business last quarter.

As my first exposure to how retail works in the corporate world, I can say that I feel lucky to have had such an amazing experience with 6 of the most passionate people I have ever met. I am so excited to apply the knowledge I have learned to my future retail career.

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