Microsoft announced this week that it will permanently close 83 retail stores and focus on online sales, and support of its products.
In what seems to be a mounting amount of corporate leases being terminated (Pier One Bankruptcy, JC Penney, HERTZ, etc all filing bankruptcy), Microsoft has decided to close all its retail stores globally. While probably a good bottom line decision for Microsoft, its another blow to the commercial real estate market and what could very well be a market readjustment in the retail market.
Microsoft said the closing of its physical locations will “result in a pre-tax charge of approximately $450 million, or $0.05 per share,” which it will record in the current quarter that ends on June 30.
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,” it said. “The company will also reimagine spaces that serve all customers, including operating Microsoft Experience Centers in London, NYC, Sydney, and Redmond campus locations.”
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