Microsoft to permanently close all retail stores
Microsoft has decided to permanently close all of its retail stores. Microsoft said the company’s retail members will continue to serve customers from Microsoft corporate facilities and remotely providing sales, training, and support. The company 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 American multinational technology company said in an official release today.
Microsoft has 83 stores worldwide, including 72 stores in the U.S and several others abroad. The company said it will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations. It said 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.
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.”