Friday, June 26th 2020
Microsoft Moves to Permanently Close Physical Shops
Microsoft has decided to revamp their customer interaction priorities. The company has recently announced they will be closing off all Microsoft physical stores and doubling down on its digital storefronts - the company is looking to start offering new services such as one-on-one videochats, where customers can converse with Microsoft employees when making a purchase - effectively digitizing one of the salient aspects of brick-and-mortar stores. Stores which have been closed since March this year due to the Covid-19 pandemic.
The decision rolls back o Microsoft's continued work on deploying physical spaces where its products can be admired, touched, and tested by prospective buyers. It looked like Microsoft was looking to recreate the Apple Store experience - adding a more premium, more personal touch to their products. However, physical stores are both more expensive to upkeep and vulnerable to more liabilities than digital-only storefronts, and it seems Microsoft has decided the stores just weren't cutting, whether financially or in brand image. No mention on layoffs was made by Microsoft in the announcement, so it seems that most of these workers will be moving on to other endeavors inside the company - likely some of them to the aforementioned 1:1 digital shop customer service. Just another step in an increasingly digital world. The closing of Microsoft Store physical locations 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.
Source:
Microsoft
The decision rolls back o Microsoft's continued work on deploying physical spaces where its products can be admired, touched, and tested by prospective buyers. It looked like Microsoft was looking to recreate the Apple Store experience - adding a more premium, more personal touch to their products. However, physical stores are both more expensive to upkeep and vulnerable to more liabilities than digital-only storefronts, and it seems Microsoft has decided the stores just weren't cutting, whether financially or in brand image. No mention on layoffs was made by Microsoft in the announcement, so it seems that most of these workers will be moving on to other endeavors inside the company - likely some of them to the aforementioned 1:1 digital shop customer service. Just another step in an increasingly digital world. The closing of Microsoft Store physical locations 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.
45 Comments on Microsoft Moves to Permanently Close Physical Shops
Had to say, wasn't a bad shop at all. Too bad they are closing then.
The problem is. Its located on oxford street which is a super touristy. Tonnes of footfall, People going in and out but nobody buying anything.I highly doubt they would pick up a Microsoft device due to warranty concerns... Plus things might be cheaper from their home country due to differences in currency exchange rates.
They are boring and they should be damn proud of it. It is their unique selling point. Any time they try to make Windows funnier, it turns to shit.
Also the surface line, the gaming PC line and the xbox, as well as a whole bunch of top level gear was being sold at those stores. Granted they did copy apple down to the last detail.
The sad thing is now that they are closing the stores I probably will just pick up a dell since the warranty is better. If I can't take my surface to an easy to access store for fixes, that puts dell sending a tech out to me as a huge benefit.
Windows Phone... same thing. Win RT... same. It all falls flat and every time you think 'if they just gave it a BIT more momentum...'
The B&M stores were from the Ballmer era, where there were still consumer-facing products like Band and Windows Phone. Surface is only mildly successful, and MS can demo those at Best Buy. Nadela rolled back the fun MS era. Right or wrong, that means there isn’t much need for storefronts.
The couple of times I've walked past the MS store, even though the mall was busy, it was usually pretty empty of customers.
Walk past an Apple store and the folks were usually jammed in there like sardines. Then again, maybe folks in there are trying to get the employee's attention to get their Apple product serviced because their shit broke on them?
It's also across the road from H&M, Niketown and some brand I've never heard of, so clearly trying to be very fashionable...
It doesn't even seem to have been there for long, judging by Google maps it's only a year or or max two. Rents must be painful there though.
I used to work about seven minutes walk from there many moons ago when I was at PCW.
I dont think ive been to the microsoft store even once since it opened. Its been there at least a year i think.
I guess tottenham court road is since log dead when it comes to computer shops? There wasn't much left five years ago.
I have never personally owned anything else from Apple after that. My wife's thoughtful $300 birthday gift turned into a $300 piece of shit paperweight in about 4 months. I felt bad for her having spent that much on something and it failing so soon.
Spearmint Rhino is still there though. :pimp:
There still are a few computer shops there. But the best ones are gone. The folks that took over are the ones that tell you your warranty is void the moment you open the box :laugh: (And this is a true story too. Back then i wanted to buy an SB-Z from one of them then they dropped the good news on me and i walked out and purchased from Amazon instead)
Some of them were pretty shit even back then I have to admit. Was convenient if I needed something quickly though.
Also, the Computer Exchange there gave me a fair chunk of cash for a really crappy Acer MP3 player with a hard drive in it that I got at a press event...