Microsoft announced a strategic change in its retail operations, including closing Microsoft Store physical locations. The company’s retail team members will continue to serve customers from Microsoft corporate facilities and remotely providing sales, training, and support. Microsoft will continue to invest in its digital storefronts on its website, and stores in Xbox and Windows, reaching more than 1.2 billion people every month in 190 markets.
The company will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations. The closing of Microsoft Store physical locations will result in a pre-tax charge of approximately 450M dollars or 0.05 dollars per share, to be recorded in the current quarter ending June 30, 2020. The charge includes primarily asset write-offs and impairments.
Since the Microsoft Store locations closed in late March due to the COVID-19 pandemic, the retail team has helped small businesses and education customers digitally transform; virtually trained hundreds of thousands of enterprise and education customers on remote work and learning software; and helped customers with support calls. The team supported communities by hosting more than 14,000 online workshops and summer camps and more than 3,000 virtual graduations.
The retail team members will serve consumers, small-business, education, and enterprise customers, while building a pipeline of talent with transferable skills.