Microsoft revealed Friday that it will permanently shut down 83 of its retail stores. Instead, it will focus on its online store Microsoft.com, where customers can get support, sales, training, and more.
The company said: The retail team members will help on site instead of stores. A spokesman for the company told CNBC: “All Microsoft employees will have the opportunity to continue working for the company.”
“Our online sales have grown, as our product portfolio has generally evolved into digital offerings, and our talented team has proven successful in serving customers outside any physical location,” David Porter, Microsoft’s vice president, said in a post on the company’s blog. He added: “We are grateful to our customers at the Microsoft Store and look forward to continuing to serve them online and with the retail sales team at Microsoft Corporation sites.”
About a decade ago, Microsoft began expanding its presence on the ground, opening many retail stores to create a similar marketing experience to Apple’s, with which consumers can go to stores to try the company’s software and new hardware before purchasing it.
The decision is believed to have been taken after the company decided to temporarily close stores in March, due to the outbreak of the new coronary virus (COVID-19).
Microsoft said: The closure of its physical locations “will result in pre-tax charges of about $ 450 million, or 5 cents per share,” which it will record in the current quarter that ends on June 30.
The company said: “Microsoft will continue to invest in the interfaces of its digital stores on Microsoft.com, and stores in (Xbox) and (Windows) Windows, to reach more than 1.2 billion people per month in 190 markets.” “The company will also re-imagine the spaces that serve all customers, including operating Microsoft Experience Centers in London, New York City, Sydney and Redmond,” she added.
It is noteworthy that the company’s decision today comes days after the announcement of the end of its game mixer service (Mixer) next month, and said: It will enter into a partnership with Facebook to push users to the service of the recent games, Facebook Gaming.
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