They should have addressed these shortcoming well before COVID-19 pummeled their metrics. The first mistake was largely copying Apple and not doing anything truly remarkable. Accordingly, it’s less about the four-wall contribution of a brick-and-mortar location and more about the importance of the role of digital and physical in winning, growing and keeping customers however they ultimately transact. For many retailers stores serve as an important component piece of the ecosystem of their brand. At another, this seems incredibly short-sighted. Microsoft has been very much an also-ran in expressing its brand in a remarkable way in the physical world. Microsoft to Launch Retail Stores – RetailWireĪt one level, this is not surprising.Microsoft Retail Stores Shuttering In $450M Hit – CRN.Microsoft to permanently close all of its retail stores – The Verge.Microsoft to Close Its Retail Stores – The Wall Street Journal.Microsoft is closing all of its stores – CNN.A New Day for Microsoft Store – Microsoft/LinkedIn.
Microsoft Store announces new approach to retail – Microsoft.“The physical stores generated negligible retail revenue for MSFT and ultimately everything was moving more and more towards the digital channels over the last few years.” to make at this point,” wrote analysts at Wedbush in a note. “This is a tough, but smart strategic decision for Nadella & Co. The closures will lead to a charge of $450 million, or five cents a share, in the current quarter. Many observers felt the store mimicked Apple’s approach. Microsoft Stores, which launched in 2009, showcased Surface and Xbox hardware plus a selection of third-party PCs. “We will continue to co-locate engineering, sales, support, envisioning centers, executive briefing centers, and retail spaces for maximum impact for our customers and our company,” Mr. Showcase stores: The company will convert four stores - London, New York City, Sydney and the Redmond campus location - into Microsoft Experience Centers with no sales available.New services planned include 1:1 video sales support. Online support: Current tools include virtual customer support, online tutorial videos and virtual workshops with tips.Porter wrote, “We deliberately built teams with unique backgrounds and skills that could serve customers from anywhere.” Remote in-person support: From Microsoft corporate offices and remotely, staff will continue to serve consumers, small business, education and enterprise customers across sales, training and support.Microsoft’s new retail approach includes: Since stores closed in late March, Microsoft has hosted more than 14,000 online workshops and summer camps and more than 3,000 virtual graduations. Its team has virtually trained and supported thousands of customers during the pandemic. Microsoft has also “proven” its ability to handle support remotely.
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