Microsoft said on Friday that it will permanently close almost all of its physical stores worldwide.
Like other retailers, the software and computing giant had to temporarily close all of its stores in late March due to the COVID-19 pandemic. According to its website, Microsoft has 83 stores worldwide, including 72 in the US, where it sells laptops and other hardware. Friday’s announcement reflects what the company calls a “strategic shift” in its retail business as sales change more and more online.
The company said that its four Microsoft Experience Centers in New York City, London, Sydney, Australia and at the company’s headquarters in Redmond, Washington, will remain open, but plans to “reimagine” how they will serve customers.
Microsoft did not say whether the move would result in layoffs. He noted that the closings would result in a pre-tax charge of approximately $ 450 million, or 5 cents a share, to be taken in the current quarter ending June 30.
Wedbush analysts called it “a tough but smart strategic decision.”
“The physical stores generated negligible retail income for [Microsoft] and ultimately, everything was moving more and more towards digital channels in recent years, “they wrote in a note.
Microsoft shares rose on the news, up 1.4%.
.
