Microsoft To Close All Its Stores
Microsoft is going fully online.
The company announced that it will be closing all of its physical locations. This is a move that explains why they were slow to open up any of their stores after the COVID-19 shut down.
Microsoft started opening up stores a couple years ago. It used a model that followed Apple's blueprint.
That idea is now in the garbage. The company feels that it can put its resources towards the online store and get a much better return.
Online they can handle 1.2 billion customers montly in 190 markets.
Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images
This move is a strategic decision and now one that was pushed by the virus. It could, however, help the company to avoid some headaches with the future of physical retail so uncertain. Apple was forced to re-close a number of its locations after a second wave of positive coronavirus tests recently.
Microsoft was also treading in a dangerous area since most of its stores are located in shopping malls. It is no secret that these facilities are on unstable footing. Microsoft, while not a major player in physical retail, is a big name that will not be located in these malls.
For the last decade, Microsoft tried to make a go of physical retail. While not a total failure, the timing of the move made sense. From an employment perspective, nothing is lost. The company said that all retail employees are working from home and would continue to do so.
The physical stores made a bit more sense when Microsoft was messing around with mobile phones. Since they bailed on that market after failing to make any headway, online sales and support make a great deal more sense. Mobile phone users tend to need more in person help as compared to computer and software users.
In total, about 75 retail locations will go away. This is not a large amount when compared to the likes of Payless, JCPenny, and Sears. Nevertheless, it does mean that 75 different landlords have lost a tenant, something that is in short supply when looking at the shopping mall sector.
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Posted Using LeoFinance
