The American multinational technology company, Microsoft has announced that it will shut down its retail stores and switch the entire operations online. As per a statement released by the tech giant, Microsoft will close down more than 80 retail stores across the globe and step into a new approach to retail operations. Microsoft will just operate in four locations and operate them as experience centres. The company also stated that all the retail team members would serve the customers from Microsoft corporate facilities and remotely provide sales training and support.
Microsoft Retail Stores Failed to Gain Momentum Against Apple
Microsoft retail stores were mainly focused on Surface tablets and laptops. Also, the Xbox gaming gear was one of the prime focus of the retail stores. However, the physical stores of Microsoft failed to gain momentum against its rival Apple. Microsoft officially stated that it would set aside $450 million to cover the cost of closing the retail stores.
Microsoft has Evolved its Digital Offerings for Customers
Microsoft Corporate Vice President David Porter stated that the online sales of the company have grown as the product portfolio has evolved to digital offerings, and the workforce has successfully served customers beyond physical location.
Microsoft Will Build 4 Experience Centres
Microsoft has stated that it will just keep four retail stores active and transform them into experience centres. The four stores will be based in London, New York, Sydney and Washington. All the retail workforce in these centres will serve customers from Microsoft corporate facilities.
Microsoft has a Turnover of $35 Billion
Microsoft has been working extensively on its cloud computing services, and it has helped the company in difficult times. Microsoft reported a net profit of $10.8 billion in January to March quarter on a turnover of $35 billion and 22% year-to-year growth. The outbreak of Covid-19 has not affected the financial results of the company. Since work from home is the new normal, Microsoft is shifting its attention to teleworking, distance and education software and services.