Microsoft to Close Its Retail Stores

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)

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