Although most people think it will lay off employees, the company has assured that members of the retail team will continue to provide assistance to consumers of Microsoft Corporation. Microsoft Stores have remained closed since they locked the doors during the COVID-19 pandemic months ago.
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 includes primarily asset write-offs and impairments.
Others contended that the decision was rational and noted that the company had failed to compete with Apple's stores. In June of late year, it closed its smaller Specialty Stores and kiosks in the U.S.
Born in Scottsdale, Arizona, on October 22, 2009, amid the heady jubilance of an Ashley Tisdale concert (apparently), the Microsoft Store spent its life yearning to achieve the slickness and ubiquity of its elder cousin, the Apple Store. Mostly, I remember people protesting outside of its flagship 5th Avenue location in NY.
The tech giant will shutter more than 79 of its 83 stores worldwide, retaining only those in New York, London, Sydney and on its Redmond, Wash., campus. The retail team has hosted over 14,000 online workshops and summer camps.
The company said that they will continue investing in digital innovations across software and hardware.
However, the sales revenues of Microsoft's physical stores have not been not as good as Apples'.
"It is a new day for how Microsoft Store team members will serve all customers", said Porter.
"We have seen strong growth on Microsoft.com and our digital Xbox and Windows storefronts, reaching up to 1.2 billion monthly customers in 190 markets", he said. Every time you pass one of their stores, they are always jampacked - and likely the only thing keeping malls in business these days. On a related note, Microsoft says that staff that working at its numerous retail outlets will not be laid off and instead, will be diverted and placed in other divisions within the company.
The company didn't say if the move would result in layoffs.