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Apple runs reseller out of town

Microscope contributor

The decision by Apple to open a store in Glasgow has sealed the fate of the consumer operation a few streets away run by Scottish Mac reseller Scotsys.

The decision to close the store came just a few weeks after the Apple store opened. When Scotsys compared revenues with its other store in Edinburgh it saw a substantial drop in the operation that was competing close to Apple.

John McAleenan, managing director at Scotsys, said it would concentrate on its Mac education business but was surprised at Apple's decision to open in a city that already had representation from a premium reseller.

"If Apple wanted to grow its market then why choose Glasgow? It could have gone to Aberdeen, Inverness or Fort William," he said.

"The two stores in Edinburgh and Glasgow did roughly the same revenue but after the Apple store opened the revenue fell to 10 per cent in the Glasgow store," he added.

Scotsys has been operating in Glasgow for 22 years after setting up the first independent Apple store in the UK and has built up a market for the vendor.

He added that it has put the staff that worked or supported the retail store in Glasgow on notice of redundancy while it worked out what is going to happen but had notified customers in an open letter of the decision to close the Great Western Road store.

One source said the Apple retail operation was driven out of the US and the decision about where to locate stores were based on several key considerations: "It will go to the locations that build its profile and if you come up against it then it is a case of damn the consequences".

Apple was unavailable for comment.

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