I was reading CNNMoney’s blog called The Browser today and came across the article announcing Nokia’s new retail store opening Sept 9 in Manhattan, a very high-priced real estate area. It particularly caught my attention because I used to work in retail, and I understand the constant need to make each retail location profitable. So I automatically ask: is this retail location worth it? Can it turn a profit?

Or does it even matter?

I can only assume that the overhead for Nokia’s new NYC store is incredibly high, with a high lease, expensive merchandising and inventory, and well-compensated staff. I have a hard time believing that the store’s retail sales—and even royalties on new cell phone service plan sales (if they provide them for different carriers and get a cut)—could possibly cover the costs for this retail location. I’d be surprised if they do.

But it may very well be worth it. So… worth what?

Worth the exposure, the promotion, the prestige, the buzz. After all, how can you be one of the world’s leading cell phone manufacturers if you don’t have enough money to maintain a cool retail spot in New York City, arguably THE business center of the known Universe? An old marketing adage says that perception is reality. If enough people perceive you to be low quality, you are low quality; if they perceive you to be rich, you are rich; if they perceive you to be a player in an industry, you are a player. This ritzy retail store gives Nokia the perception of clout, it creates media and marketplace exposure—these things are valuable to Nokia, and it’s hard to put a price on them.

Worth what? Worth staying in the game. Nokia must keep up with the Joneses; their competition—Sony, LG, and Samsung—all have retail stores close by in NYC. You’ve got to be able to match your competitors, and hopefully outdo them… a savvy business lesson for any company.

Thus, while a costly retail store may not in itself make money for Nokia, you can be sure the value they derive from it is worth the accompanying price tag.