Nokia’s Finnish Forest-Themed Flagship Store Felled
According to company lore, the design of Nokia’s flagship store on London’s Regent Street was “inspired by the forests of Finland.” And, evidently, like the forests of Finland, it was a cold, empty place. Because less than two years after opening it, Nokia (NOK) is shuttering the shop.
With poor foot traffic and anemic sales, the store, which, ironically, sits almost opposite an Apple (AAPL) store, never managed to meet profitability targets. Not really what you’d expect from a “benchmark-setting” retail outlet intended to provide “the ultimate shopping experience for Nokia’s wide portfolio of mobile devices.”
An embarrassing defeat for the troubled phone giant and one that demonstrates just how much of a struggle Nokia has competing in the smartphone market these days. Said CCS Insight analyst Ben Wood: “There was no question that the store was trying to replicate what Apple had done and build up the brand rather than shift devices. The question is why that strategy has worked for one company and not for the other.”