Microsoft to close retail stores

Microsoft announced on Friday that it will permanently close its Microsoft Store stores. Instead, it will focus on its online store at Microsoft.com, where customers can request support, sales, training, and more.

Microsoft said members of its retail team will help on the website rather than the store. It is unclear if there will be layoffs. A Microsoft representative was not immediately available to comment.

Microsoft’s shares were relatively unchanged on the news.

In the last decade or so, Microsoft began expanding its retail presence in an effort to create an Apple-like shopping experience, where people could try new Microsoft software and hardware created by Microsoft and its partners. Microsoft even built a store on 5th Avenue in New York City, just a few blocks from Apple’s iconic glass cube store.

The decision appears to be made after Microsoft decided to temporarily close stores in March due to the spread of the coronavirus. Microsoft said the closure of its physical locations “will result in a pre-tax charge of approximately $ 450 million, or $ 0.05 per share,” which it will record in the current quarter ending June 30. “The charge primarily includes the writing of asset offs and impairments,” Microsoft said.

“Microsoft will continue to invest in its digital stores on Microsoft.com and on Xbox and Windows, reaching more than 1.2 billion people each month in 190 markets,” Microsoft said. “The company will also reimagine spaces that serve all customers, including the operation of Microsoft Experience Centers in London, New York, Sydney and Redmond campuses.”