Microsoft recently announced it will close down almost all its retail shops, save four specific locations, to put greater focus on its online marketplace…
Software giant Microsoft recently released a statement that it plans to shutter its physical retail locations. The company explains that by closing the brick-and-mortar shops, it will “result in a pre-tax charge of approximately $450 million, or $0.05 per share.” This, after spent about a decade building out a similar shopping experience to rival Apple.
Microsoft Permanently Closing its Retail Stores
The corporation mentions the mid-March closures it underwent due to the COVID-19 outbreak and subsequent quarantines. It appears that during that time, the company determined its bottom line would be better served by focusing its efforts on its digital storefronts, rather than physical locations. (Although, it will “reimagine” four stores: New York City, London, Sydney, and Redmond.)
Microsoft says that it will offer its retail employees the opportunity to transition to the web stores. This, to help serve the 1.2 billion people it reaches every month across 190 markets. The company wrote on the Microsoft News Center that it’s experienced solid gains through its website sales:
“With significant growth through its digital storefronts, including Microsoft.com, and stores on Xbox and Windows, the company will continue to invest in digital innovation across software and hardware. New services include 1:1 video chat support, online tutorial videos, and virtual workshops with more digital solutions to come.”