Microsoft to close physical stores and focus on online sales – The National

Microsoft to close physical stores and focus on online sales – The National

The company expects to take a one-off hit of $450m in relation to the closures

















The Microsoft store in the Manhattan borough in New York. Reuters 







Microsoft will permanently close all of its 83 retail stores globally and completely switch to online sales channels, the company said.



The closure of the physical stores will result in a pre-tax charge of nearly $450 million (Dh1.7 billion), or $0.05 per share, in the current quarter ending on June 30, the company said. This includes asset write-offs and impairments.



"The past months have been extraordinary “¦ amidst the challenges, our team has focused on how we can continue to serve our customers,“ David Porter, corporate vice president of Microsoft Store, said.



"Our team has proven success serving customers beyond any physical location,“ he added.



Besides product sales, Microsoft's stores offered users a place to try out Windows-run PCs, Xbox consoles and various third-party computers and phones. The company said it will keep physical locations in New York, Sydney, London and at its Redmond campus in Washington, which it will convert into experience centres. They will showcase new technologies but will not sell anything.



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