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Valencia Apple Store opening forces reseller to close


An authorized Apple Premium Reseller in Valencia, Spain -- Illa Digital -- closed its doors four weeks after an Apple Store opened just four blocks away. ifoAppleStore reports that competition from the Apple Store caused Illa Digital to start losing revenues almost immediately after the official Apple outlet opened for business, and finally laid off four employees before closing up shop earlier this week.

There's a second reseller in Valencia, K-Tuin, located further away from the city center where the Calle Colón Apple Store and Illa Digital locations are, and it's apparently still in operation.

ifoAppleStore notes that Apple executives have claimed for years that business for nearby resellers actually improves, but that resellers have "generally disputed that claim." To survive, they need to adjust their customer focus to remain relevant -- for instance, putting an emphasis on out-of-warranty repairs, selling used equipment, and so on.

For Illa Digital, it looks like it's too late to change the focus and try a slightly different business plan.

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