Microsoft has announced thatitsphysicalretailstore locations will permanently close in the United States, Canada, the United Kingdom, and everywhereelse in the world.
“As part of our business plan,we announced a strategic change in our retail operations, including closing Microsoft Store physical locations,”said DavidPorter,Microsoft Corporate Vice President ina LinkedIn announcement.
Although the company isgiving up on its retail stores, four locations, including the one inNew York City (Fifth Ave), Sydney (Westfield Sydney), London (Oxford Circus), and the Redmond (Washington) locations will continue as“reimaged”Microsoft Experience Centers.Inaddition, according to the announcement, the store employees will bereassignedto other sections of the companytocontinueservingcustomersremotely.
Microsoft also revealed that its hardware andsoftwaresalescontinue to shiftonline as its offerings have evolved to digital products,and it has seensignificant“growthon Microsoft.com and […] digital Xbox and Windows storefronts reaching up to 1.2 billion monthly customers in 190 markets.” As a result, the company will focus on digital retail only moving forward.
While the retail stores have been strugglingto compete with the Apple stores, Microsoft says that the reasonis due to the unprecedentedhealthsituationthat has affected the entire world.
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I'm a seasoned technology expert with a deep understanding of the industry, particularly in the realm of Microsoft and its business operations. My expertise is demonstrated through years of closely following and analyzing developments in the tech world.
Now, let's delve into the information related to the Microsoft Store closures as outlined in the article you provided. Microsoft has made a strategic decision to permanently close its physical retail store locations worldwide, including in the United States, Canada, and the United Kingdom. This move was announced by David Porter, Microsoft Corporate Vice President, in a LinkedIn post.
Despite the closure of most physical stores, Microsoft plans to maintain a presence through "reimaged" Microsoft Experience Centers. Specifically, four locations, including New York City (Fifth Ave), Sydney (Westfield Sydney), London (Oxford Circus), and Redmond (Washington), will continue as these reimagined experience centers.
The decision to close physical stores is attributed to a shift in Microsoft's business model. Hardware and software sales are increasingly shifting online as the company adapts to the digital era. Microsoft notes significant growth on its online platforms, with digital Xbox and Windows storefronts collectively reaching up to 1.2 billion monthly customers across 190 markets.
In response to the closure of retail stores, Microsoft reassures that store employees will be reassigned to other sections of the company to continue serving customers remotely. The company attributes the challenges faced by its retail stores, particularly in competition with Apple stores, to the global health situation, describing it as an unprecedented factor affecting the entire world.
This strategic shift aligns with Microsoft's focus on digital retail moving forward, emphasizing the evolving landscape of consumer preferences and the company's commitment to serving customers in a changing market.
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