Microsoft to spend $450 million to shut down all retail stores

Microsoft's brick and mortar stores are becoming largely extinct as the company pivots even further into digital.

In a recent press release entitled "Microsoft Store announces new approach to retail," the service titan confirms it'll be closing all stores worldwide and those in in New York City, New York, Redmond, Washington, Sydney, Australia, and London, England will all evolve into Microsoft Experience Centers.

Interestingly enough, Microsoft says it won't fire anyone. MS Store staff will continue on and focus on digital sales, training, and tech support. This can also be done remotely, the company says.

"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 Microsoft.com, and stores in Xbox and Windows, reaching more than 1.2 billion people every month in 190 markets."

This business move will cost Microsoft $450 million in pre-tax charges, which is par for the course for loss-incurred shutdowns.

Last updated: Jun 29, 2020 at 09:29 am CDT