Microsoft on Friday announced that it would be shutting down physical locations to focus with a new approach on retail as it also reimagines all spaces that serve all customers. With retail stores shutting down, Microsoft will focus on investing in online fronts on Microsoft.com, and stores in Xbox and Windows which reach more than a billion customers every month across the world.
The retail teams will however continue to serve its customers remotely proving sales, training, and support. The closing of physical locations will results in a pre-tax charge of approximately $450M. Ever since Microsoft Stores close in late March worldwide due to the COVID-19 pandemic, the retail teams have helped customers virtually.
The company states that it has seen significant growth on its digital storefronts with Microsoft.com, and stores on Xbox and Windows.
“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 Vice President 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.”
“We deliberately built teams with unique backgrounds and skills that could serve customers from anywhere. The evolution of our workforce ensured we could continue to serve customers of all sizes when they needed us most, working remotely these last months,” said Porter. “Speaking over 120 languages, their diversity reflects the many communities we serve. Our commitment to growing and developing careers from this talent pool is stronger than ever.”