Well, Samsung’s tale of declining profits and sales isn’t looking to brighten up, at least if the recent development is an indication. The Korean smartphone
giant manufacturer has now ‘permanently’ locked down its London flagship Experience store in the midst of catastrophically descending smartphone sales.
Samsung Experience Stores are well equipped shops that offers full range of smartphones, tablets, laptops, cameras and genuine accessories. Samsung has nine such Stores across the UK, including one flagship store in Westfield, that has now been shut down.
This isn’t a first for Samsung, as far as store shut down are concerned. The Korean giant had earlier halted the sale of laptops in Europe and now with the slumping smartphone sales, the tech giant is seeking for alternates to maintain the profit ratio. Since the flagship store located in London, Westfield Stratford City is the most expensive among all the nine stores, Samsung unhesitatingly stepped ahead to lock it down to manage the retail costs.
This shutdown (and possibly similar ones in future) may quite possibly be a direct result of the huge pressure, which Samsung has been facing in China and India. It has been experiencing hard times in competing with other emerging companies that offer relatively equal specifications in smartphones, but at a rock-bottom price. Xiaomi which has been Samsung’s most fierce competitor, has already replaced the Korean giant as the No.1 smartphone manufacturer in China.
Samsung may have to take similar steps in future until it devises a new strategy to rocket up its sales chart. Samsung also invested in buying 60 Carphone Warehouse shops in Europe at the beginning of the year, with the intention of opening them as standalone stores. However, the future of those warehouses does not seem so bright.