Samsung shutters flagship retail 'Experience Store' in London
While Apple continues to expand its highly successful retail presence, Samsung's own retail experiment appears to be floundering, as the South Korean electronics maker has closed its flagship store in one of Europe's largest malls.
The closing of the Samsung Experience Store at London's Westfield Stratford City shopping center was first revealed on Wednesday by The Verge. The shuttered store is already being disassembled, and a note posted out front signed by "The Samsung Team" refers shoppers to alternative locations for support and sales.
The company issued a statement saying that it's "fully committed" to its remaining nine Experience Stores in the U.K." It said those locations will not be affected by the decision to close the London shop.
Apple, meanwhile, operates a total of 38 stores in the U.K. Three of those are in London --?at Covent Garden, Regent Street, and White City.
Since the Samsung shops began to open, critics have noted their numerous similarities to Apple's highly successful brick-and-mortar locations. Microsoft, too, has stepped into the retail game with Apple-like shops strategically located in malls where Apple has an established presence.
Samsung even hired a former Apple Store designer to push its retail efforts. The company's retail plans also involve nearly 1,500 mini-stores at Best Buy locations throughout America.
The closure of Samsung's flagship London location comes as its smartphone business has been struggling through 2014. Last quarter, Samsung's mobile division saw its profits drop by 73.9 percent, while Apple grew its operating profits 11.3 percent.
Samsung ships about twice as many smartphones per quarter as Apple does, but many of those are low-end, low-margin devices that do little to help the company's bottom line. In terms of mobile profits, Samsung is a distant second behind Apple, though virtually all other mobile companies barely break even or actually lose money.
The closing of the Samsung Experience Store at London's Westfield Stratford City shopping center was first revealed on Wednesday by The Verge. The shuttered store is already being disassembled, and a note posted out front signed by "The Samsung Team" refers shoppers to alternative locations for support and sales.
The company issued a statement saying that it's "fully committed" to its remaining nine Experience Stores in the U.K." It said those locations will not be affected by the decision to close the London shop.
Apple, meanwhile, operates a total of 38 stores in the U.K. Three of those are in London --?at Covent Garden, Regent Street, and White City.
Since the Samsung shops began to open, critics have noted their numerous similarities to Apple's highly successful brick-and-mortar locations. Microsoft, too, has stepped into the retail game with Apple-like shops strategically located in malls where Apple has an established presence.
And it's all over for the flagship #Samsung Experienced store in @westfieldstrat #signofthetimes pic.twitter.com/P03eNivsab
— Najeeb Khan (@najeebster) Samsung even hired a former Apple Store designer to push its retail efforts. The company's retail plans also involve nearly 1,500 mini-stores at Best Buy locations throughout America.
The closure of Samsung's flagship London location comes as its smartphone business has been struggling through 2014. Last quarter, Samsung's mobile division saw its profits drop by 73.9 percent, while Apple grew its operating profits 11.3 percent.
Samsung ships about twice as many smartphones per quarter as Apple does, but many of those are low-end, low-margin devices that do little to help the company's bottom line. In terms of mobile profits, Samsung is a distant second behind Apple, though virtually all other mobile companies barely break even or actually lose money.
Comments
Alternate locations like the nearest Apple Store.
They are also committed to selling PCs everywhere expect Europe... until their lack of customers changes their minds for them. The experience of plagiarism has a very brief satisfaction period.
So surprised ... NOT!
Wow, packing it in during the peak holiday shopping season.
That is grim.
Excellent point.
:-/
What are you talking about?
This is an article about Samsung Stores, not Apple Stores.
Quote:
Originally Posted by mpantone
That is grim.
Excellent point.
It actually isn't that much of a retail rarity...
One factor has to do with lease renewal times, and lease terms,
since the same time of year also sees a lot of leases initiated,
and some leases require minimum payment not necessarily tied to sales.
Then there are tax and write-off reasons as well.
But you're right, whatever the specifics, the general message is 'epic fail'.
This goes to show that the companies that make their own distinct products do better than those who make "commodity" products. Android phone makers don't make a lot of money because there is not a lot to really distinguish them from each other, except price. So price goes down the toilet which means little or no profit (vs the effort involved). Same with Windows vs Mac OS. Anybody and their dog (including you) can build a Windows machine. Again, nothing really to compete on except price...
Apple is a classic example of business success on many fronts: Putting the customer in front and letting "shareholder value" be made through pleasing the customer and generating the sales instead of through accounting gimmicks (like most "shareholder value" propositions are), creating your own distinct products and not me-too products, and providing excellent service.
Rough time to call it quits
Usually flagship stores are larger (compared to other stores), may have an iconic design, and are located in the very best locations.
I don't understand how the stratfield area could be considered prime location, its not central London. Oxford street and Piccadilly circus is more what I would call flagship area! We can always ask Mr B Frosty who lives in London what he thinks
Well, maybe that's partly why this particular flagship store failed: a bad choice on Samsung's part in locating a larger store in a place that couldn't support the sales level necessary to make it a profitable venture.
The article mentions 3 Apple stores in London - there are six - all doing fabulously well unlike Samsung - that's my point!!!!