Microsoft announced that it will close its retail stores due to the COVID-19 and will focus on digital sales, namely its online store at Microsoft.com, where customers can make purchases and seek support. David Porter, vice president of the Microsoft Store, announced the company’s decision on June 26, via a post on LinkedIn. Microsoft will continue to employ retail salespeople, but will focus on sales, training and support for consumers, small businesses and enterprise customers, Porter said. Microsoft will not close its stores in London, New York, Sydney and Redmond, however. Porter said the company will “imagine” them as new spaces that will serve more as experience centers. He did not provide further details on how customers will be able to visit these centers. Microsoft initially announced its plans to open retail stores under its own brand in February 2009.
Over the past decade or so, Microsoft has begun expanding its retail presence, aiming to create an Apple- like shopping experience where customers could try out new software and products created by the company and its partners. Microsoft stores offered users a place to see and try out Windows PCs , Windows Phones, Xbox consoles, and various third-party PCs and phones, including some Android phones . Some Microsoft stores, such as the New York City store, which opened in 2015, also offered demonstration areas for products such as the Microsoft HoloLens, as well as community/education spaces.
However, Microsoft's retail stores never caught up to Apple's. Microsoft tried a number of tactics to quickly open more retail stores, including opening holiday pop-up stores in 2012 to promote Windows 8. However, Microsoft always lagged behind Apple in terms of both the number of total stores and the traffic in those stores.
Microsoft said the closure of its retail stores will result in a pre-tax charge of about $450 million, or $0.05 per share, which will be reflected in the results of the current quarter ending June 30. Finally, there is no clarification yet on whether layoffs will occur.
