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Microsoft to permanently close its retail stores

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Re: Microsoft to permanently close its retail stores

#61
The London store is on Oxford Street and a lot of stores in that area are flagships that don't have to make money directly. Not having to have stock or cash registers just saves money, the main mission of having an impressive presence need not be burdened with actual retail sales.

Some Oxford Street stores do make lots of money but there are many others where ten minutes in the store is enough for you to see what is going on. The whole range can be on show whereas in your regional town there is a fraction of the range. But you can experience the brand.

Adjacent to Oxford Street is Tottenham Court Road. This was legendary in the 1990s for computer shops with fairs in nearby halls where you could buy components for competitive prices, as if nobody was paying VAT. That scene went a long time ago for more flagship stores to come along. These flagship stores don't have to make sales to cover the rent. Microsoft are part of the theme park.

Re: Microsoft to permanently close its retail stores

#65
post #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?

They will keep a support team (not just salespeople) near big customers where it would be better to employ people locally compared to having to send support staff from Redmond each time a customer has a problem.

Re: Microsoft to permanently close its retail stores

#66

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.

This is purely anecdotal. Take it with a grain of salt.

We have a "high-end" Simon mall, in a town near where I live. It's quite "upscale," with Saks Fifth Avenue, Bloomingdales, etc.

It has an Apple Store near the South entrance, and a Microsoft Store, near the center.

The Apple Store is always packed. I haven't been there in a few months, so I have no idea what's going on with it at the moment, but it has always been jammed, when I have gone there; even at early or late hours. I have never found a time when it is not crowded.

The Microsoft Store, on the other hand, usually has more staff than customers, with the staff playing XBox in the sitting area outside the store.

Re: Microsoft to permanently close its retail stores

#68
post #2

While I am not surprised, I am disappointed by this. Only because of the state of tech stores in Boston, if I needed something that wasn't Apple (gaming mostly) they were the only other tech store I could reasonably walk or take the train too. Microcenter isn't super close to a train station.

I always remembered walking along the Charles, really far west of the Mass Ave bridge and asking myself "why is there a Microcenter here?"

It is right next to Harvard and pretty close to MIT. There's a bunch of other larger stores in the area.

Beats the one closest to Philly, which was a decent drive out of town.

Re: Microsoft to permanently close its retail stores

#69

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 agree, but I kinda feel like the relaxed and comfortable atmosphere was more of an indication that the stores weren’t doing so hot. Every time I went to one is was because it was quieter and lower key than other stores. And I never actually wanted to buy things. Maybe that’s good(ish) marketing but probably doesn’t make good business sense.

Being able to inspect hardware before buying is a good idea, even if you do put the order in online.

Re: Microsoft to permanently close its retail stores

#70

Apple stores had specific function and well-defined goals. Brand, hands on, direct sale, all spring to mind. Microsoft stores seemed to have a motto of "Copy Apple stores". I didn't get their reason for existing.

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.

Don’t forget LinkedIn profile photo booths! (not kidding, I saw one when I walked past my local MS store)
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