Microsoft said it will make strategic adjustments to its retail business and plans to permanently close almost all Microsoft Store retail stores in the United States and around the world, leaving only four stores as experience centers to continue business. The four reserved stores are located on Fifth Avenue in New York City, Oxford Square in London, Westfield in Sydney and Redmond Park in Washington State. The Microsoft side also said that considering asset write-offs and impairments, the closing of the physical store will bring about $450 million in pre-tax fees.
Why choose to close the physical store? David Porter, vice president of Microsoft Corporation, said that as Microsoft‘s product portfolio evolved into digital-based products, the company‘s online sales are increasing. In addition, insiders of Microsoft revealed that Microsoft has formed a dedicated team to provide online services for customers from anywhere. The team ensures that when customers need it, they can remotely support services for customers of all sizes.
Due to the impact of the epidemic, as early as the end of March this year, Microsoft had stopped all offline retail store operations, and has not restarted its business since then. Just last week, Microsoft also said that the company is relatively cautious in reopening Microsoft retail stores, will monitor global data, listen to public health and safety experts, and track local government restrictions.