Microsoft has moved to close its physical retail stores around the world to focus on online stores and distributions.
It’s not very easy to sell products physically due to the cost it takes and the management system. Microsoft has today announced plans to permanently close all the company retail Store locations in the United States and around the globe, except for four locations that will be “reimagined” as experience centers that no longer sell products even before the company comes to this very decision.
Those places that are not close are located in the USA and they are New York City (Fifth Ave), London (Oxford Circus), Sydney (Westfield Sydney), and the Redmond campus location. The other USA and global locations are going to be closed down on the agreed date by the company while the company will focus on digital retail onward. Meanwhile, the London location was just open a year ago.
Microsoft Reason Of Closing Down Retails Shops
According to the stat the company released, the company said that Microsoft.com and the Xbox and Windows storefronts reach “up to 1.2 billion monthly customers in 190 markets” meaning they are not making much on the company retire shop.
According to the verge, the company said that no layoffs will result from today’s decision. “Our commitment to growing and developing careers from this diverse talent pool is stronger than ever,” Microsoft Store VP David Porter said in a LinkedIn post on the move.
The Verge also added that “this plan was originally in place for next year, but was accelerated by the COVID-19 pandemic. Microsoft’s Xbox Series X is launching this holiday, so it makes sense that the company had at least initially planned for the stores to make it that far”. “The dual-screen Surface Neo device that was also going to ship during the holidays has been delayed, though the Surface Duo is apparently still on track for this year”. “Still, if you were hoping your local Microsoft Store would be a surefire bet for a new Xbox, you’ll have to look elsewhere”.
From the above report, we can clearly see the reason why Microsoft has decided to close down its retail shops around the globe. according to The Verge “approach for re-opening Microsoft Store locations is measured and cautious, guided by monitoring global data, listening to public health and safety experts, and tracking local government restrictions.” At the time, the company declined to offer an update on when any stores might open again.
Due to the COVID-19 Microsoft stores have not been in an operation and has lack been lacking in many aspects, but the company products continue to sell even if they are no functioning retail shops across the USA. “The company is taking cautions restarting their retail shop since the COVID-19 pandemic is relaxing,” said Microsoft on a LinkedIn post. In order to avoid a resurgence of the novel coronavirus — most malls remain closed till date waiting for things to relax well. There have already been spikes of COVID-19 cases in regions with more relaxed guidelines, which has led Apple to re-close some stores where it had only recently welcomed customers back in.
Microsoft outline in a blog post about the numbers of retail store associates had shifted to the remote work after the job done everyday sidelined. The company also keeps providing regular payment to the team members through the COVID-19 Pandemic. The company said “Our retail team members will continue to serve customers working from Microsoft corporate facilities or remotely and we will continue to develop our diverse team in support of the overall company mission and objectives,”
Each of the company stores showcases the company’s Surface and Xbox hardware, plus a selection of third-party PCs.
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Microsoft Permanently Closing Retail Store Conclusion
I believe Microsoft is taking this step to cut down costs and expenditures so the company can invest the money in other expect of the company but I think employees will lose their jobs which will affect their families and that depend on them.