Nokia closes flagship Regent Street shop as Apple retail's star continues to shine

Nokia is shutting down its posh Regent Street shop following its failure to grab the hearts and minds of consumers.

The company apparently spent £4 million on the shop, which aimed to spread Nokia's brand and message at the hordes of Apple consumers at the flagship Regent Street store on the other side of the road....

On its opening two years ago, Simon Ainslie, Managing Director Nokia UK commented, "In championing our brand, Nokia Regent Street will be dynamic, original and beautifully designed. The store will provide world-class customer service and deliver a unique experience enhancing our customer's lifestyles."

A spokeswoman confirmed that the store will shut down in the first quarter of 2010. Nokia cited poor sales and poor footfall at the shop, which opened two years ago among much pomp and ceremony with a packed journalists junket, so it's not like it didn't have some support from London's "media types".

The store was intended as a showcase for the company's latest technologies...

Ben Wood, an analyst with CCS Insight, told The Times: “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 in why that strategy has worked for one company and not for the other.”

We think we know the answer; and it is interesting to reflect that Apple's Regent Street store across the road is now the most profitable (in terms of yield per square foot) in central London.