Microsoft has said it would shut down all its stores and move every retail operation online. The organization revealed it would keep only four locations and transform them to “experience centers.”
According to a statement issued by Microsoft, the development translates to the fact that the over 80 Microsoft stores that were shut down due to the coronavirus pandemic will not be reopened as the corporation enters “a new approach to retail.”
The statement said: “Microsoft will continue to invest in its digital storefronts on Microsoft.com, and stores in Xbox and Windows.”
The locations that will be transformed to Microsoft Experience Centers are in Sydney, London, New York and at the company’s Headquarters in Redmond, Washington.
While talking about the development, Microsoft said its Retail team members would “serve customers from Microsoft corporate facilities and remotely providing sales, training, and support.”
Microsoft said it would earmark $450 million to cover the expenses of closing the locations though Microsoft has not disclosed the number of employees that would be affected.
Microsoft Corporate Vice President, David Porter said: “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.”
In recent years, Microsoft has been depending more on its services like cloud computing while its retail locations focus on its Surface tablets, laptops and Xbox gaming gear. However, the physical stores did not gain Apple’s momentum.
The pandemic’s impact has not yet reflected in Microsoft’s financial results as a net profit of $10.8 billion from January to March, up 22 percent year-on-year, on a turnover of $35 billion was posted by Microsoft.
