Microsoft revealed in a news release that it will permanently close its physical retail locations, Microsoft Store, worldwide due to a "strategic change in its retail operations," reported USAToday.

According to Forbes, this comes after the company had temporarily closed its Microsoft Stores back in March in light of the Covid-19 pandemic.

Shifting online

USAToday reported that the company's retail team will now offer sales, training and support from both its Microsoft corporate facilities and remotely.

Microsoft will also invest in its digital stores on Microsoft.com as well as stores in Xbox and Windows which reach over 1.2 billion people each month, said USAToday.

According to USAToday, Microsoft Corporate Vice President David Porter said in the release:

“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location."

“We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”

Pre-tax charge of ~S$627 million

The permanent closures will "result in a pre-tax charge of approximately $450 million (~S$627 million) consisting of "primarily asset write-offs and impairments," said Forbes.

Microsoft currently has 82 Microsoft Store outlets, with the majority of them being located in the United States, while the rest are in Australia, Canada, Puerto Rico and United Kingdom.

Since their closure in March, the company has launched over 14,000 online workshops and summer camps, and over 3,000 virtual graduations, reported Forbes.

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Top photo via Microsoft