Microsoft To Close All Retail Stores And Take A $450 Million Loss

Microsoft has announced something shocking with a massive change to its retail operations. The software giant has operated Microsoft Retail Stores in various locations around the country for a long time. Microsoft has announced that it will be closing all of its retail locations and will continue to support customers online with retail team members working remotely and at Microsoft corporate locations.

Microsoft wrote, “The company will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations. 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. The charge includes primarily asset write-offs and impairments.”

Microsoft says that its sales have grown online is its product folio has evolved to mostly digital offerings. It says that it’s grateful to Microsoft Store customers and looks forward to continuing to serve those customers online and with retail sales teams at Microsoft corporate locations. Microsoft Store locations have been close since late March due to the COVID-19 pandemic.

New services that Microsoft will offer through its digital storefronts and stores on Xbox and Windows will include 1:1 video chat support, online tutorial videos, and virtual workshops. Microsoft also promises additional digital solutions in the future.