Microsoft Closing Retail Stores [2020-06]

Further context: https://www.cnbc.com/2020/06/26/microsoft-to-close-retail-stores.html

Microsoft on Friday announced it will permanently close its 83 Microsoft Store retail locations. It will instead focus on its online store at Microsoft.com, where customers can go for support, sales, training and more.

Microsoft said its retail team members will help on the website instead of in store. A Microsoft spokesperson told CNBC that all Microsoft employees will have the opportunity to stay with Microsoft.

“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” Microsoft Corporate Vice President David Porter said in a blog post. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”

Shares of Microsoft were down about 1.5% mid-morning on Friday.
 
Official Press Release from Microsoft: https://news.microsoft.com/2020/06/26/microsoft-store-announces-new-approach-to-retail/

Microsoft to continue to support customers online, with retail team members working remotely and at Microsoft corporate locations

REDMOND, Wash. — June 26, 2020 — Microsoft Corp. (NASDAQ: MSFT) (“Microsoft”) today announced a strategic change in its retail operations, including closing Microsoft Store physical locations. The company’s retail team members will continue to serve customers from Microsoft corporate facilities and remotely providing sales, training, and support. Microsoft will continue to invest in its digital storefronts on Microsoft.com, and stores in Xbox and Windows, reaching more than 1.2 billion people every month in 190 markets. The company will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations. The closing of Microsoft Store physical locations will result in a pre-tax charge of approximately $450M, or $0.05 per share, to be recorded in the current quarter ending June 30, 2020. The charge includes primarily asset write-offs and impairments.

“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” said Microsoft Corporate Vice President David Porter. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”

Since the Microsoft Store locations closed in late March due to the COVID-19 pandemic, the retail team has helped small businesses and education customers digitally transform; virtually trained hundreds of thousands of enterprise and education customers on remote work and learning software; and helped customers with support calls. The team supported communities by hosting more than 14,000 online workshops and summer camps and more than 3,000 virtual graduations.

“We deliberately built teams with unique backgrounds and skills that could serve customers from anywhere. The evolution of our workforce ensured we could continue to serve customers of all sizes when they needed us most, working remotely these last months,” said Porter. “Speaking over 120 languages, their diversity reflects the many communities we serve. Our commitment to growing and developing careers from this talent pool is stronger than ever.”

The retail team members will serve consumers, small-business, education, and enterprise customers, while building a pipeline of talent with transferable skills.

“The Microsoft Store team has long been celebrated at Microsoft and embodies our culture,” said Microsoft Chief People Officer Kathleen Hogan. “The team has a proven track record of attracting, motivating, and developing diverse talent. This infusion of talent is invaluable for Microsoft and creates opportunities for thousands of people.”

With significant growth through its digital storefronts, including Microsoft.com, and stores on Xbox and Windows, the company will continue to invest in digital innovation across software and hardware. New services include 1:1 video chat support, online tutorial videos, and virtual workshops with more digital solutions to come.

“It is a new day for how Microsoft Store team members will serve all customers,” said Porter. “We are energized about the opportunity to innovate in how we engage with all customers, maximize our talent for greatest impact, and most importantly help our valued customers achieve more.”
 
I never really had close access to a Microsoft store, nearest one being ~ 45 minutes away, but it would have been nice for some of their store promotions. So much for that.

I can't say I blame them, with everything still being shuttered down, and they likely haven't noticed much of an overall impact from not being open. They would need to do a few partnerships with other brick and mortar retail stores, if they wanted special promotions, like an Xbox All Access setup in person. I imagine it could be similar to the T-Mobile / Sprint / Verizon phone sales at Best Buy.
 
Oh crap, and I wanted to check out the London Oxford circus one.
Sounded pretty nice in there
 
its a lot of fluff so far , sounds like they want to move out of malls and have experience stores inside of Corporate office buildings around the country like they are building in Atlanta. Sounds like store employees will have jobs.


All employees are now Blue Badged. They are all getting new roles it looks like. They are making an ew Community Ambassador role to maintain local connections. They are keeping Microsoft Give.
 
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My biggest surprise from this announcement was that Microsoft had physical stores.
Same here...
What the hell do ms sell in the stores - windows, office, some games a couple of mice it's not enough to fill a store
 
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Oh yeah I forgot about the surface tablets and the xbox stuff
also didnt realise thats where you go to buy a mclaren
"microsoft's version of the genius bar"
I wonder if like apple do they say you need a motherboard replacement if you have a loose wire
 
didnt realise thats where you go to buy a mclaren
"microsoft's version of the genius bar"
I wonder if like apple do they say you need a motherboard replacement if you have a loose wire
To be fair, that does sound genius. No wonder Apple makes so much money. :D
 
Oh yeah I forgot about the surface tablets and the xbox stuff
also didnt realise thats where you go to buy a mclaren
"microsoft's version of the genius bar"
I wonder if like apple do they say you need a motherboard replacement if you have a loose wire
For microsoft first party stuff they would replace it if under warranty or complete. If it was a third party device purchased in the store it would either be sent out to be fixed or if its outside of a year you can switch to a different pc of the same value but you'd have to buy another protection plan on it.

Up until the surface laptop 3 the majority of the computers were not easily fixed. You have to go through the front glass of the surface pros for instance to get access to anything and then it was all glued in anyway
 
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