The launch of a new Apple Retail Store in Valencia has forced one Apple Premium Reseller – located just four blocks away – to lay off its four employees and close up.
The reseller, Illa Digital – located in Valencia, Spain – explains that competition from the nearby Apple Store hit the premium reseller hard (via ifoAppleStore). After a short while, the reseller started losing revenue and now, just over a month since the Apple Store opened, the premium reseller is shutting down.
Ironically, Apple claims that resellers located near Apple Stores usually see an increase in businesses – though most resellers disagree. In many cases, as TUAW explains, resellers perform out-of-warranty repairs and sell used parts in an attempt to maintain their relevance. Though more often than not – and especially if the rival Apple Store is just four blocks away – resellers are forced to shut down.
This isn’t the first time an Apple Store has put a reseller out of business, and it won’t be the last. In Valencia, another Apple reseller is in operation, though this one is situated further away from the retail store. Its location might be enough to keep the store in business, though if Apple fans have the option of purchasing a new product directly from Apple itself, it’s likely that they’ll take it.
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