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Microsoft to permanently close its retail stores

theverge.com

41–50 of 290 posts

Re: Microsoft to permanently close its retail stores

#41

I think one point people are missing: Apple stores, even if they exist mainly to promote the brand, are MASSIVELY profitable. In fact, they are one of the most profitable store chains in the world. By contract, I believe that Microsoft was always running most of their stores at a loss. Even for a massive company like Microsoft, continuously running an unprofitable division is hard to maintain.

Also, Apple has continued to pay their retail employees throughout the closures. If the Microsoft stores were already struggling for profitability, closing the stores may have been the better choice rather than to having to layoff and then try to rehire.

The article mentions that there will be no layoffs and the staff have already been redeployed to remote roles.

Re: Microsoft to permanently close its retail stores

#42
I scoured through two financial annual reports of MS for 2018 and 2019 but found no emphasis on the growth/profit or loss margins of their retail outlets. Though, I've heard a great deal about them and it seems like they were useful.

Fun fact: MS always aimed to open their outlets in serious close proximity to Apple stores.

Re: Microsoft to permanently close its retail stores

#43

Earlier quoted context omitted.

Apple has like 5 producs.That's it. Microsoft probably has more. However,for MS user it's a console, a PC,or laptop,while for Apple fans it's The Apple. Hence the difference in brick and mortar stores.

I know there is no point responding to such comments, but I was curious myself: iPhone, iPad, iPod, Apple Watch, AirPods, MacBook, iMac, Pencil, AppleTV, HomePod, the monitor, software products, cloud services, plus accessories to support the ecosystem. plus selling high margin extended warranties and financing. Most of those items are categories of products, not specific products themselves. Many of those products a…

They're not the #1 phone, they're not the #1 computer platform, they're not the #1 smart speaker, they're not the #1 monitor vendor, they're not the #1 streaming television dongle.

I don't know how you can say "most are industry leaders in their respective segments."

Re: Microsoft to permanently close its retail stores

#44

This is disappointing, although I'm not surprised. One of the best things about the Microsoft stores is that they provided an obvious way to get individual attention on software issues. My grandfather was a frequent visitor of the Microsoft stores to resolve his software issues with his SurfaceBook and his generic Dell Laptop. This type of one on one, in person attention was really useful to him and made the Microsof…

That's a great point and an understated value-add to the Microsoft/Windows ecosystem. There is something to be said for not having to call a tech support line, but going to a physical location (where you may have bought your device) to get help and support. Even if the MS stores were run as a loss, MS should have eaten those costs.

Re: Microsoft to permanently close its retail stores

#45

This is a real shame. We have (had?) a Microsoft Store in the Triangle (Raleigh-Durham), and my visits to that store were always really enjoyable. I made several warranty claims in-store, and they went above and beyond to help me out, even when my grounds for a claim were kinda shaky. Microsoft did a really good job of hiring diverse talent, and every store-clerk I ever interacted with was smart, nice, and seemed to…

I wish announcements were more straightforward. I’m looking at their announcement but can’t figure out what they mean by:

“...We will continue to co-locate engineering, sales, support, envisioning centers, executive briefing centers, and retail spaces for maximum impact for our customers and our company.”

What does that actually mean in real terms?

Re: Microsoft to permanently close its retail stores

#46

This is a real shame. We have (had?) a Microsoft Store in the Triangle (Raleigh-Durham), and my visits to that store were always really enjoyable. I made several warranty claims in-store, and they went above and beyond to help me out, even when my grounds for a claim were kinda shaky. Microsoft did a really good job of hiring diverse talent, and every store-clerk I ever interacted with was smart, nice, and seemed to…

I never realized that. As a matter of fact, is there one in CLT?

Re: Microsoft to permanently close its retail stores

#47

Earlier quoted context omitted.

Their reasons for existing were the same as the ones you listed for Apple stores: Brand, hands on, direct sale. I'd also add that they serve as a place where buyers believe that they can get support on product, thus increasing their trust in the product. That's an incredibly valuable thing IMO.

What products did Microsoft support there? I only have Microsoft OS and none of their devices so maybe I'm missing their value. FWIW, if I have Windows issues on a Dell laptop then I call Dell for vendor support.

Mainly Surface and Xbox. Remember that Microsoft launched the Microsoft Store model under Ballmer when they were trying to go head on with Apple in the consumer space.

Re: Microsoft to permanently close its retail stores

#49

How much is this MS deciding they’re really not a consumer brand - but rather one focused on cloud and enterprises?

Looks more to me like they are giving up on their Surface line-up specifically, rather than all their consumer focused products. The Microsoft stores & Surface line was Microsoft's attempt at copying Apple with expensive devices with solid build quality and good support. It saw some success but apparently not enough.
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