Two More Nokia Flagship Stores Sunk
Nokia’s flagship retail stores in the United States evidently haven’t done much to bolster the company’s single-digit market share in North America. Nokia said today it is shutting down stores in New York and Chicago as part of a new retail strategy that includes more cooperation with carriers and big-box retailers–and, one hopes, better sales.
Earlier this week, Nokia (NOK) announced plans to close its flagship store on London’s Regent Street. These stores were designed to “inspire and educate consumers to the benefits of mobility” and broaden the appeal of the Nokia brand but have apparently done neither, particularly in the North American market, which is among Nokia’s weakest.
“There is no reason for Nokia to have the flagship stores–they cost too much compared to the value they create,” Strand Consult analyst John Strand told Reuters. “Flagship stores are important in fashion industry: Apple is fashion. Nokia is consumer electronics.”
In the end, isn’t the rent the company would have paid on these retail spaces better spent on, you know, developing a worthy rival to Apple’s (AAPL) iPhone?
