Microsoft Is Closing All Retail Stores: Locations Shuttered Since March Not Reopening

Ruben Fields
June 29, 2020

Microsoft, which aimed at competing with Apple Stores with its own retail stores, has announced that it is shutting down all its retail stores in the USA and around the globe.

Microsoft announced on Friday it will permanently close all of its physical stores worldwide.

As part of these changes and re-organizations, every one of its retail stores will close.

The company notes that its online sales have grown and it's confident that its team, which is diverse and skilled, is capable enough to serve customers beyond physical outlets.

Our team members will continue to serve consumer, small business, education, and enterprise customers, focused on sales, training and support.

Microsoft's announcement to close its physical location "will result in almost $450 million in pre-tax fees, or $0.05 per share, which will be recorded in the current quarter as of June 30". The charge will be recorded in the current quarter ending June 30, 2020, and includes asset write-offs and impairments.

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Much of that business continued online, Porter wrote, while stores have closed because of the pandemic.

The Microsoft Store retail store debuted in 2009 and closely followed Apple's successful retail strategy.

Microsoft's hardware and software sales have continued to shift online as its product portfolio has evolved to digital products including Microsoft 365, gaming and entertainment, according to Porter. Microsoft said that the online stores of Microsoft.com, Xbox, and Windows have 1.2 billion customers per month in 190 markets. If you've ever been in a mall where there is a Microsoft store and an Apple Store, you'll see that there is a huge difference in the crowd.

Microsoft's brick and mortar stores are becoming largely extinct as the company pivots even further into digital.

All employees will have the opportunity to remain with the company, Microsoft said. The company's push into retail stores started about 11 years ago, as the company looked to showcase products like its Xbox game consoles as well as third-party personal computers.

The other good news is that Microsoft will transform some of its flagship stores in Redmond, NYC, London, and Sydney into "Microsoft Experience Centers".

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