Microsoft to Close Its Retail Stores
27 June 2020 - 1:27AM
Dow Jones News
By Allison Prang
Microsoft Corp. is exiting bricks-and-mortar retail after
opening its first location more than a decade ago, as the tech
giant focuses on bolstering its digital storefronts.
"Our sales have grown online as our product portfolio has
evolved to largely digital offerings," David Porter, corporate vice
president, said in a press release Friday.
In late March, the company's stores closed as a result of the
coronavirus pandemic and stay-in-place orders aimed at cutting the
virus' spread. The pandemic has led many retailers to temporarily
close their physical locations and rely on their online businesses.
In some cases, like with Microsoft, companies have permanently
closed retail locations.
Through the pandemic Microsoft has been heavily investing in its
group conferencing and collaboration software, seeing the
technology as critical to its future.
The company said its retail staff will serve customers from
corporate facilities and remotely, providing sales, training and
support. Microsoft has used its retail presence to promote its
growing hardware business, which is expanding to include gear like
foldable tablets to wireless earbuds. Microsoft is also planning to
release the latest generation of its Xbox gaming console later this
year.
Microsoft has more than 80 Microsoft Store locations, most of
which are in the U.S., according to its website.
Microsoft said it would record a pretax charge of about $450
million in the current quarter from the closures, primarily for
asset write-offs and impairments.
Tech giant Apple Inc. has also invested in building out its
bricks-and-mortar retail presence in recent years. The company has
271 U.S. retail locations though it has temporarily closed 32 of
those stores since last week Friday amid rising coronavirus case
counts in several states.
(END) Dow Jones Newswires
June 26, 2020 11:12 ET (15:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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