In the last decade alone, Microsoft had made a considerable effort to expand its retails stores to emulate Apple’s retail experience. Now the 83 stores, located mostly in the US, have been closed for good.
A Microsoft representative disclosed to CNBC that the employees would be able to retain their jobs with Microsoft. The roles of the retail team will be shifted to efforts towards the website, which will be Microsoft’s primary location for customers to get sales, support, training, and more.
Microsoft Surface
According to a spokesperson, Microsoft’s online sales have grown due to their digital offerings, which can now be handled without a physical retail store.
Microsoft revealed that the closure of their brick-and-mortar establishments would be resulting in a pre-tax charge of $450 million, which is to be recorded in the quarter than ends on 30th June. This decision comes in the wake of the temporary closure of Microsoft stores in March due to the COVID-19.
During the coronavirus pandemic, the retail division of Microsoft has been busy helping small businesses and educational consumers with digital transformation solutions. Microsoft has hosted more 14,000 online workshops and summer camps as well as 3000 virtual graduations during the lockdown situation around the world.
Conclusion
Microsoft will be concentrating its efforts and investments into its digital marketplace based on Mircrosoft.com and other dedicated online stores, including Xbox and Windows. The online stores are said to be reaching more than 1.2 billion people in 190 markets every month. Instead of brick and mortar stores, the company will reimagine its retail strategy with accessible experience centers in the world’s major cities, including NYC, Sydney, London, and more.