Why Microsoft Is Closing All Its Retail Stores

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Microsoft  (MSFT) - Get Report announced that it is permanently closing all of its physical stores.

On June 26, the company released a statement announcing their 'new approach to retail.'

“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” said Microsoft Corporate VP David Porter. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”

Microsoft store locations have been closed since March due to the coronavirus pandemic. The company has 83 stores worldwide including 72 in the U.S. 

However, the company says that it will keep its New York City, London, Sydney and Redmond campus locations. Those locations will be reimagined as “Microsoft Experience Centers."

“It is a new day for how Microsoft Store team members will serve all customers,” said Porter. “We are energized about the opportunity to innovate in how we engage with all customers, maximize our talent for greatest impact, and most importantly help our valued customers achieve more." he added.

Microsoft says that the closing of the stores "will result in a pre-tax charge of approximately $450M, or $0.05 per share, to be recorded in the current quarter ending June 30, 2020. The charge includes primarily asset write-offs and impairments."

In the past week, Microsoft rival Apple  (APPL)  announced the temporary closing of 32 stores in five states as the cases of coronavirus spiked. 

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