Microsoft has confirmed that it will be closing all its physical retail stores worldwide to focus on online sales. In a statement, the company said its retail team members will continue to serve customers from Microsoft corporate facilities and remotely provide sales, training and support. It also intends to “reimagine” four locations – London (Oxford Circus), Sydney (Westfield), New York (Fifth Avenue) and its Redmond campus – as Microsoft Experience Centres.
The closing of Microsoft Store physical locations will result in a pre-tax charge of around USD 450 million, or USD 0.05 per share, to be recorded in the current quarter ending 30 June, said Microsoft, adding that the charge includes primarily asset write-offs and impairments. The company said it will now concentrate on digital retail via its Microsoft.com, Xbox and Windows storefronts which it said currently reach “up to 1.2 billion monthly customers in 190 markets.” It’s also planning to introduce new services including 1:1 video chat support, online tutorial videos and virtual workshops in the coming months.
Microsoft had yet to reopen any of its physical stores since they were closed in late March due to the Covid-19 outbreak. According to an unnamed source cited by The Verge, the company was originally intending to close its stores next year, but decided to accelerate plans in the light of the pandemic.
