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Microsoft Is Closing All Its Retail Stores

Microsoft

Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. The word “Microsoft” is a portmanteau of “microcomputer” and “software”. It develops, manufactures, licenses supports, and sells computer software, consumer electronics, personal computers, and related services. Its best-known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. In 2016, it was the world’s largest software maker by revenue (currently Alphabet/Google has more revenue). Microsoft is ranked No. 30 in the 2018 Fortune 500 rankings of the largest United States corporations by total revenue. It is considered one of the Big Five technology companies alongside Amazon, AppleGoogle, and Facebook.

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In a bid to adjust with the new ‘normal’ that is the new pandemic scenes, Microsoft has announced the plan to close its physical stores permanently.

The company has issued a statement saying it will halt operations at all of its retail store locations in the US and around the world and switch to a full online-only sales model.

Here’s all you need to know about it.

All stores closing, four to be reimagined as ‘experience centers’

The company said it will shutter all 83 of its outlets globally, except four locations in the US, the UK, and Australia, which will be reimagined as ‘experience centers’.

These centers will showcase Microsoft technologies, including Xbox, Windows, and Surface products, but won’t necessarily sell anything.

With this move, the Redmond giant plans to shift completely to an online-only sales model.

The company says it reached more than 1.2 billion people every month in 190 markets through its digital storefronts on Microsoft.com, and stores in Xbox and Windows.

However, it did not say how it plans to double down on digital retail, moving forward.

Sales have grown online, says Microsoft Corporate VP David Porter

“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. We’re grateful to our Microsoft Store customers and we look forward to continuing to serve them online,” said David Porter.

No layoffs will be carried out

Despite the bold shift from physical to online-only retail, Microsoft will not be laying off any store associates,

The company says its retail team will “continue to serve customers from Microsoft corporate facilities and remotely providing sales, training, and support on remote working and learning software (among other things) to small businesses and education customers.”

Here’s what Porter said about the retail associates

“We deliberately built teams with unique backgrounds and skills that could serve customers from anywhere,” Porter added. “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.”

Store closures were planned before the pandemic

The decision from the company comes after its stores closed due to the novel coronavirus pandemic in March and remained shut even as giants like Apple began re-opening.

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