Microsoft is Closing All of its Physical Stores Forever

Tech giant Microsoft announced recently that it is permanently closing its 83 Microsoft Store retail locations.

The closings of the physical locations will “result in a pre-tax charge of approximately $450 million, or $0.05 per share,” which the company said it would record in the current quarter that ends June 30. “The charge includes primarily asset write-offs and impairments,” the company said.

Microsoft has decided that it will instead focus on its online store at Microsoft.com, where customers can go for support, sales, training and more.

According to a statement from a company spokesperson to CNBC, retail team members will help on the website instead of in-store and that all the employees will have the opportunity to stay with the company.

“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,”wrote Microsoft Corporate Vice President David Porter in a blog post. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”

It was in March that Microsoft had temporarily closed its stores due to coronavirus.

“Microsoft will continue to invest in its digital storefronts on Microsoft.com, and stores in Xbox and Windows, reaching more than 1.2 billion people every month in 190 markets,” it said. “The company will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations.”

Disclaimer: We have no position in Microsoft Corporation (NASDAQ: MSFT) and have not been compensated for this article.