Cape Town-based Apple reseller Digicape is closing its Johannesburg retail operation due to the unsustainability of the business, but will continue to support corporate sales and services.
“We have taken a knock on the chin and learnt a lot of lessons about the differences between the Cape and Gauteng retail markets,” says Digicape director Robin Olivier. “We are not giving up on our Johannesburg operations, but we have had to reconsider how we were doing things and we have learnt that we should do things differently.
Digicape is the largest independent reseller of Apple computers and other hardware. Its main operation is located in the centre of Cape Town and it is busy merging with another Cape Apple reseller, Project 3.
Olivier says factors that influenced the decision were that the Johannesburg premises were not attracting the foot traffic needed for a retail operation, that Gauteng consumers wanted store locations in large malls where they could do all their shopping in one go, and crime.
“The Johannesburg store was literally cleaned out twice in the two-and-a-half years it was there. While the incidents happened after hours, it was very unsettling for our staff and customers,” he explains.
Olivier says corporate sales were doing well in Johannesburg.
“It is because we have a presence in Johannesburg that we were able to get more Cape Town-based customers. And corporate sales are more outbound than inbound, as in retail.
“We examined every facet of the operation and decided that the retail part had to go,” he says.
Digicape will continue to operate from its premises at The Wedge shopping centre, in Bryanston, with it mainly being a service centre. However, people will still be able to buy Apple products there.
“It just won't be a shop,” Olivier says.
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