Microsoft announced on Friday the closure of all 83 of its retail stores and will now focus on its online store and members of the retail team will continue to serve consumers from Microsoft corporate centres.
The company will continue to invest in its digital storefronts on Microsoft.com, and in stores in Xbox and Windows, where it reaches more than 1.2 billion people in 190 markets each month.
The company will re-envision its spaces to serve all consumers, including the Microsoft Experience Centers located in the London, New York City, Sydney, and Redmond campuses.
The closure of the physical locations of the Microsoft Store will result in a pre-tax charge of approximately $450 million, or $0.05 per share for the current quarter ending June 30, 2020.
“Our online sales have increased, as our product portfolios are offering mostly digital offerings, and our talented team has successfully proven itself to serve consumers beyond a physical location,” said David Porter, vice president of Microsoft Corporate.