Falling Sales Leads to Closure of London Samsung Store

Amid falling smartphone sales, Samsung has decided to close its flagship store in London. The Samsung Experience Store at Westfield Stratford City has closed for good.

Samsung’s Experience Stores were positioned as the first place to get Samsung’s latest products – mainly their Galaxy line of smartphones. Sales of Samsung’s Galaxy S5 flagship phone were down 40 percent in its first 3 months on sale, possibly part of the reason behind the closure. Apparently the new devices were “piling up in warehouses”, after Samsung made the fatal error of producing more than was needed.

With excess inventory pilling up and suggestions of an executive reshuffle, many have tried to understand why Samsung’s previously strong smartphone business may be faltering. A number of people have pointed to the fact that the iPhone 6 and 6 Plus sold more than 10 million units in its first weekend, with a reported 20 million pre-orders in China alone. Apple confirmed during its earnings call in October that the company had sold over 39 million iPhones last quarter.

Source: The Verge