This doesn't sound good: Sony Ericsson is planning to shut down its flagship retail store located in London's high-end Kensington neighborhood, MocoNews is reporting. It turns out that the 3,500-square-foot, two-year-old outlet store has yet to turn a profit.

The money quote from back then: at its opening, a senior SE exec had said that the store was intended as "a showcase," though it was not meant to be "a money pit." The report said that between Sony Ericsson's struggles and the high rents in Kensington, the latter is exactly what the store has become.

In lieu of more openings in Europe, the report said that the struggling handset manufacturer plans to concentrate its efforts in Asia, where it currently has 200 stores—it plans to eventually have 290 and is particularly eyeing India for potential store openings.