After Microsoft closed its retail stores late March due to the COVID-19 crisis, Friday it just announced that it will permanently close all its physical retail stores and put most of its focus on its online store at Microsoft.com, where customers can go for support, sales, training and more. Microsoft said its retail team members will help on the website instead of in store so it still remains unclear at this point if there will be layoffs.
As the news broke, Microsoft’s shares were relatively unchanged on the news. In the past decade or so, Microsoft began to expand its retail presence in an effort to create a shopping experience similar to Apple’s, where people could go to try new Microsoft software and hardware created by both Microsoft and its partners.
The decision seems to be made after Microsoft decided to temporarily close stores in March due to the spread of coronavirus. Microsoft said the closing of its physical locations will “result in a pre-tax charge of approximately $450 million, or $0.05 per share,” which it will record in the current quarter that ends on June 30. “The charge includes primarily asset write-offs and impairments,” Microsoft said.
Microsoft said.
“Microsoft 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 company will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations.”
