Thursday, 02 July, 2020

Microsoft Stores In Canada Are Closing & Going Completely Digital Instead

Article Featured Image COLLINS | Wikimedia
Cecil Davis | 29 June, 2020, 20:12

Numerous offline retailers across the world have switched to an O2O (online to offline) model where customers can register their interest in a product online on the company's official online store or social media page.

Microsoft says it is permanently closing almost all of its physical stores around the world.

In April, Microsoft described in a blog post, how many of its retail store associates had started working remotely after their everyday jobs were sidelined due to COVID-19.

The company notes that its online sales have grown and it's confident that its team, which is diverse and skilled, is capable enough to serve customers beyond physical outlets.

Microsoft temporarily closed its physical stores back in March in the wake of the coronavirus outbreak, just like many other companies. All stores are going to be shuttered for good, although four - in New York City, London, Sydney, and its Redmond campus - will be turned into experience centers that don't sell products.

Microsoft said the closures will "result in a pre-tax charge of approximately $450 million", which the company will record during the current quarter.

Microsoft has 116 stores in 5 countries including US, UK, Canada, Australia and Puerto Rico.

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Microsoft's strategy is notably different to that of rival Apple, which in May reopened the majority of its retail stores across the US.

It is a new day for how Microsoft Store team members will serve all customers.

However, the company's attention has largely shifted to selling software and services to businesses, the vast majority of which are now digital sales.

Moreover, he said: "Microsoft will proceed to provide capital for Microsoft's digital stores". Microsoft says these digital storefronts reach more than 1.2 billion people every month in 190 markets. New services include one-to-one video chat support, online tutorial videos and virtual workshops, the company said.

Microsoft isn't the only retailer that has been closing up shop recently.

As the impact of company decisions on the technology industry, this move will soon attract more companies to focus on online sales rather than retail.