Samsung Closes Flagship “Experience Store” in London Amid Slow Sales

Earlier this year, Samsung collaborated with retailers Carphone Warehouse and Phones 4U to open branded stores in the U.K. and Europe, in an effort that mirrored what it did in the U.S. in mid-2013 with big boxer Best Buy (BBY) to launch some 900 “Experience” kiosks.

Now, according to reports, the Korean device maker has shuttered its high visibility London “Experience Store,” amid sliding sales. The store, located in one of Europe’s largest shopping centers in London’s Westfield Stratford City, employs more than 50 people, all of whom now are out of work but may be relocated, Samsung said, according to a CNet report.

Samsung has positioned its Experience Stores as the go-to location, first for its Galaxy S4 and, subsequently for the follow-on Galaxy S5.

In September, Samsung pulled its Ativ laptops and Chromebooks from the European market, citing sluggish demand, downward price pressure and hefty competition. The London store closing likely is tied to the vendor’s overall cost-cutting measures to improve its bottom line. Samsung’s Q3 operating profit tumbled to $3.8 billion, a 60 percent downturn from the same period last year and the lowest earnings level the Korean manufacturer has recorded in three years.

“We regret to announce that we will be closing the Samsung Experience Store at Westfield Stratford City at the end of this year,” Samsung told CNet. The shop reportedly already has been taken down, the report said.

“We will do our utmost, where possible, to look to find affected employees alternative employment within the business or offer a financial package should they choose to move on to find new opportunities,” Samsung said.

At this point, the vendor doesn’t plan to close any more of its retail outlets. “We remain fully committed to the operation of the remaining nine Samsung Experience Stores across the UK, and wish to reassure our customers that those stores will not be affected by this decision,” Samsung said.

Samsung didn’t offer any details about changing its plans to expand its retail footprint in Europe to 60 new locations.