Key points :
- Microsoft decided to close all 83 retail stores worldwide permanently.
- Due to the effects of the corona, the company will focus on digital stores.
- Only four stores will open but no longer sell products.
- Online sales have increased, so the company has changed its focus.
The statement issued by Microsoft yesterday shocked the entire technology industry. The company has begun to change the marketing strategy of its product lineup. Although most people think it will lay off employees, the company has assured that members of the retail team will continue to provide assistance to consumers of Microsoft Corporation. They will be permitted to work remotely and will continue to provide online services to customers.
Microsoft announced on Friday that it would permanently terminate its 83 Microsoft retail stores. It is the right time and its best to focus on the online stores on Microsoft.com instead of retail stores. The company will direct the retail team’s personnel for online sales and support, and customers will continue to receive the service as before.
Microsoft said that its members of the retail team will provide help on the website rather than on the store. A Microsoft spokesperson said that all employees will have the opportunity to accompany the company.
David Porter, vice president of Microsoft, said in a blog: ” As our product portfolio has evolved into a major digital product, Our online sales have increased, and our talented team has proven triumph in providing help to customers in any physical location.”
We thank Microsoft Store customers and look forward to continuing to provide online help as well as assisting them with the retail team where Microsoft is located. “
Microsoft shares closed down 2% on Friday
Over the past decade or so, Microsoft has begun to strengthen its retail business to create a shopping experience similar to Apple, where people can test the new Microsoft software and hardware created by Microsoft and its partners. Microsoft even established a store on Fifth Avenue in New York City, just a few steps away from Apple’s iconic glass cube store. This decision seems to have been made after Microsoft decided to temporarily shut down its store in March due to the pandemic COVID-19.
Microsoft’s announcement to close its physical location “will result in nearly $450 million in pre-tax fees, or $0.05 per share, which will be recorded in the current quarter as of June 30.”The assessment mainly includes major assets written off and losses. “
Moreover, he said: “Microsoft will proceed to provide capital for Microsoft’s digital stores. Stores in Xbox and Windows have reached more than 1.2 billion people in 190 markets each month.”
“The company will also reimagine areas that will serve all customers, including the Microsoft Experience operations centers in the London, New York, Sydney, and Redmond campuses.”
Microsoft’s Xbox Series X is launching the aforementioned holidays, so it makes sense that the organization at least initially planned to let the store go that far.
Although the Surface Duo is still available this year, dual-screen Surface Neo devices have also to be shipped delayed during the holidays. However, if you want the local Microsoft Store to be the winning choice for the new Xbox, then you will have to turn elsewhere.
The company supports the community by organizing more than 14,000 online seminars and summer camps and more than 3,000 virtual graduation ceremonies.
Microsoft announced that members of the retail team will provide services to consumers, small businesses, education, and corporate customers while creating a talent portfolio with transferable skills.
Since several Microsoft stores are located in shopping malls or centers, continuous closure is not emphasized as unnatural. In the United States where a cautious strategy is taken to re-establish the retail operations to prevent this pandemic coronavirus from circulating again, most shopping centers remain closed.
Those areas where the instructions are more informal, COVID-19 cases have proliferated, and Apple is urged to reclose some stores that have recently welcomed customers again.
The Microsoft Store team has been celebrating at Microsoft for a long time and embodies our culture,” said Kathleen Hogan, Microsoft’s personnel director.
As the impact of company decisions on the technology industry, this move will soon attract more companies to focus on online sales rather than retail. The company said that in the next few years, we may see more stores closed worldwide.