Microsoft to permanently close all of its retail stores
Microsoft locations in NYC, London, Sydney, and Redmond will be turned into experience centers
:no_upscale()/cdn.vox-cdn.com/uploads/chorus_image/image/66986020/1084721272.jpg.0.jpg)
Microsoft is giving up on physical retail. Today the company announced plans to permanently close all Microsoft Store locations in the United States and around the world, except for four locations that will be “reimagined” as experience centers that no longer sell products.
Those locations are New York City (Fifth Ave), London (Oxford Circus), Sydney (Westfield Sydney), and the Redmond campus location. The London store only just opened about a year ago. All other Microsoft Store locations across the United States and globally will be closing, and the company will concentrate on digital retail moving forward. Microsoft says Microsoft.com and the Xbox and Windows storefronts reach “up to 1.2 billion monthly customers in 190 markets.”
The company tells The Verge 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.
A source with knowledge of Microsoft’s retail operations told The Verge 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.
The big decision partially explains why Microsoft had yet to reopen a single store after they were all closed in light of the pandemic. Last week, Microsoft told The Verge that its “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.
Since many Microsoft stores are in shopping centers and malls, the continued closure hasn’t stood out as unusual. In US states that are taking a cautious approach to restoring retail operations — to avoid a resurgence of the novel coronavirus — most malls remain closed. 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.
In April, Microsoft outlined in a blog post how many retail store associates had shifted to remote work after their everyday jobs were sidelined. The company has continued to provide regular pay for team members through the pandemic. “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,” the company said in today’s update.
The Microsoft Store debuted in 2009 and closely adhered to Apple’s successful retail playbook. Each store is a showcase for the company’s Surface and Xbox hardware, plus a selection of third-party PCs. Employees were well-versed in all things Windows, and the company also offered in-store events, workshops, customer service, and repairs.
The stores were were closed even before Microsoft’s latest hardware release cycle that included the Surface Book 3, Surface Go 2, Surface Earbuds, and Surface Headphones 2.
Update June 26th 9:50AM ET: The article has been updated to clarify that all Microsoft retail stores will be closing. The company’s locations in New York, London, Sydney, and Redmond will be converted into experience centers that do not sell products.
COMMENTS
Makes me sad
By laez on 06.26.20 9:24am
‘Twas inevitable. The consumer interest for Microsoft just isn’t on the same plane as Apple. It’s why the Surface line can’t move a fraction of the units Apple does. 3rd Parties have found what works for them. Emulating the Apple experience was never the direct Microsoft should have taken. They seem to have been ping-ponging about the past 15 years when it comes to their consumer facing business. I think they should focus on enterprise, software & infrastructure. Their hardware/retail ambitions have not materialized well, beyond some nice looking products.
By FORESEE on 06.26.20 9:32am
Ping-ponging? Have you heard of XBox, Surface, and all the consumer tech collaborations? How much more laser-focused on consumers can you be?
It’s really a shame they are closing their stores. The ones I’ve been to were always packed and it’s the best place to get MS service.
I do see the argument that Apple stores are making ridiculous margins off of accessory sales where Microsoft doesn’t have that business opportunity.
By iScubaSteve on 06.26.20 9:53am
Xbox has always been middling in sales, lacked strength in unique gameplay experiences & is propped up by Microsoft rebranding Games For Windows & Windows Live to Xbox Live. If Xbox Live was called Pygin, the Xbox name really wouldn’t mean much beyond a console that has kind of rode the middle through every generation. Pygin is actually the standout product.
I already mentioned Surface. Great looking hardware, shitty sales compared to their other premium PC counterparts. They’ve put hundreds of millions into advertising these things only to have them called "iPads" by the NFL when they had an official endorsement deal. I venture to bet their acquisition costs are leaps and bounds higher than Apple. It hasn’t been a very successful venture. At most they can say is they inspired others to copy and sell it better. That clearly wasn’t their ambition tho with the amount they put into advertising their line.
Every time I’ve been in a MS store they were pretty empty compared to the Apple Store across the way. It was actually sad to see. It felt like going into a Bose store..
By FORESEE on 06.26.20 10:05am
Surface alone generated 2 billion dollars in 2019. Compared to 5 billion for Mac sales. Pretty successful if you ask me.
By aras87 on 06.26.20 10:59am
Are you talking about for a quarter? Where is this info coming from? Last I checked Apple dominated 2019.
By FORESEE on 06.26.20 11:34am
There Surface lineup is actually pretty big and its obviously not as big as Apple’s lineup. Its big with people working in corporate positions but not as big with consumers. That’s probably because of the pricing which i will admit is higher then it should be. Also apparently the Surface Pro X has been selling quite well.
By NeedUsername on 06.26.20 11:56am
Hence my point. I don’t get why people are so hell bent on arguing against the cold hard facts. They’re a great software, enterprise & infrastructure company… their consumer facing efforts have been middling at best, but mostly have fell short. Where is the lie?
I agree they are overpriced, in some cases more so than Apple when you compare performance per dollar.
By FORESEE on 06.26.20 12:08pm
yes.
some people believe you argue it’s bad products. of course they are wrong, it’s not what you’re talking about. You’re talking about volumes and then the logical decision by Microsoft.
They are NOT bad products. But they don’t have the success Microsoft wants from them to justify stores and stuff.
The hardware business of Microsoft is not comparable in volumes to Apple.
In quality, there is many things to discuss and we can compare to Apple, but it’s not the point : NOONE is telling Microsoft hardware products are bad.
-
also, who cares if one favorite team is winning ? they are all great computers available whatever we fancy and they all work great. We should be glad there are these possibilities and choices.
By Oomu on 06.26.20 2:14pm
Your number for Mac sales is not accurate. I just checked their 4 quarterly reports. Apple generated over 25 billion from Mac sales in 2019, and this number doesn’t even include the iPad sales.
By I am not Spartacus on 06.26.20 12:30pm
Uh, why is worth pointing out that Mac sales figures don’t include iPads? Kinda obvious because iPads aren’t Macs.
By samayg on 06.26.20 1:21pm
The OP used Mac sales as a figure used in his argument comparing Surface sales to .. well, iPad sales (using Mac sales).
By fxspec06 on 06.26.20 1:42pm
because in the end, for store business, it’s the whole volume of all products which matters.
Microsoft was trying to add it its xbox, mouse, surfaces and so on. but it’s still not enough, it seems.
-
with Apple, if you starts to add iPads to Mac, even not counting iphone (!), it’s pretty huge business.
By Oomu on 06.26.20 2:16pm
Doesn’t get any more wrong than this and 11 people still upvoted you lol. Amazing.
By Mariah Carey on 06.26.20 1:06pm
16 now, but yeah. That’s the way it is on forums, right? You see the same thing on Reddit.
Someone posts a brief comment stating something as if it was fact, and people come along and upvote just because it jives with their personal biases. No one bothers to check if the "facts" presented are actually true or not.
By MicroGoogApplMazon on 06.26.20 2:13pm
I feel like upvoting you, but at the same time can’t shake the feeling that it would be rather ironic.
By Gatanui on 06.26.20 7:22pm
Actually, surface is $1 to 1.5 billion per quarter or $6 billion/year.
By dirtyvu on 06.26.20 2:21pm
Actually if you compare the most recent quarter (Q3 FY2020), the Surface earning was $1.34bn.
https://mspoweruser.com/microsoft-q3-fy20-earnings-surface-registers-a-1-increase-in-revenue/
In Apple’s most recent quarter: Q2 2020, the Mac raked in $5.35bn while the iPad $4.37bn.
To remove the iPad from Apple‘s computing revenue is like saying that the Surface Book/Laptop/Studio should be categorized differently from the Surface Pro.
Here’s the Mac and iPad revenue trends for the part 24 quarters (courtesy of Six Colors)
Apple integrates Mac and iPad OS. Both are integral to Apple’s computing vision and revenue.
By MykeM on 06.26.20 9:11pm
Amazing that iPad revenue has almost halved in the same timeframe Apple has introduced the super expensive Pro line.
By ahlam99 on 06.27.20 8:28am
Rather, the release of the pro stopped the bleed. The pro didn’t come out until Q4 2015 (fiscal Q1 2016, but I’m not sure how that’s represented on the graph) with gen 2 in late Q2 2017 along with the first of the cheap iPads.
By stevib on 06.27.20 7:17pm
It’s clear you’re just looking for ways to downplay Microsoft. Of course they don’t make the revenue Apple does on hardware; Apple sells arguably the most desired and aspirational hardware on the planet. Surface is still a multi-billion dollar business, as is Xbox. Xbox has not always been "middling" in sales; last generation Microsoft beat Sony in sales in the west and only lost globally at the very end of the generation with an over 5 million unit deficit in Japan. It’s insane that a company like Microsoft was able to do that when Sony was coming off of the two most successful consoles in the history of gaming. I use mostly Apple products and play mostly on PlayStation and Nintendo platforms, but come on, don’t be so unfairly dismissive because of your personal opinions.
By Rez_ on 06.26.20 11:22am
Sure. A decade ago. Now Xbox is being outsold 3-to -1 by Sony.
By DemocraticSocialist on 06.26.20 11:29am
This is weird to say but Microsoft, although the XBONE struggled, did innovate quite a bit in this generation in things like cross-play, xbox to pc, game passes, accessibility & specs. They’ve forced Sony’s hand on a few things and made gaming better as a result. That being said, Sony just has better games and more of them and will continue to dominate so long as that is the case.
- post written on a surface pro
By ElTiempo on 06.26.20 5:19pm
There is no use in arguing with FORESEE, I made the same points last week about Microsoft and Xbox when talking about Mixer closing. I don’t really know what personally vendetta they have with Microsoft, maybe Bill Gates or Steve Ballmer came to his house and kicked his dog as a kid.
By Sex_Ferguson on 06.26.20 11:34am
Maybe the consistent shuttering of their ventures in their consumer facing business is a telltale sign that my opinions aren’t that big of a stretch. I get it may not make you feel good but my opinion on Microsoft has been consistent for years and has been consistently right. Great software, enterprise & infrastructure company that just isn’t hitting the market how they desire with their consumer facing efforts.
By FORESEE on 06.26.20 11:46am