Free Assessment: How does your inbound marketing measure up?

Get Started
Close

Free Assessment:

How does your inbound marketing measure up?
Take this free, 5-minute assessment and learn what you can start doing today to boost traffic, leads, and sales.
Get Started
inbound-marketing-strategy-playbook-cover

Free Assessment:

Microsoft takes a 'new approach to retail' by closing all its physical stores

By Eric Choma

Microsoft takes a 'new approach to retail' by closing all its physical stores

As the worst of the COVID-19 pandemic seems to have passed for much of the world, the long shadow of the illness and the quarantine continue to play out for businesses large and small.

From mom and pop local outfits to multinational corporations, COVID reverberations and after-shocks will continue for the foreseeable future — but the exact nature of these can be difficult to predict. 

This week, Microsoft — the eighth-largest public company in the U.S. — abruptly pivoted its retail strategy. 

Microsoft announced its major strategy shift on Friday, deciding to close all of its brick-and-mortar retail stores. According to CNN, this will cost the tech giant about $450 million in taxes, but will likely save it money in the long run. 

Microsoft also says it will “reimagine spaces that serve all customers,” which includes turning brick-and-mortar stores in London, New York City, Sydney and Redmond, Washington into “experience centers.”

Putting this pivot in context

According to Microsoft’s Corporate VP David Porter, the company’s digital presence weighed heavily into the decision: 

“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.” 

According to The Verge, Microsoft claims to reach more than 1.2 billion people every month in 190 markets through its online marketplaces for Xbox and Windows

Now, it will put more emphasis there.

Microsoft’s Retail History

In 2009, after hiring Porter, a former Walmart exec, the Microsoft opened its first retail store in Scottsdale, Arizona alongside the launch of its Windows 7 operating system.

It eventually opened a store in Silicon Valley in 2011, strongly influenced by Apple Inc.’s design aesthetic and approach, this time in conjunction with the launch of the Windows Phone.

Microsoft has operated many more physical retail stores over the past decade. At its peak, the company had 116 locations around the world, including 106 in the United States. 

Despite plans to shutter its stores, Microsoft says that there will be no layoffs as a result of the decision.

Rooted in Self-Awareness

Microsoft’s decision is bold but admirable. While it must have been a difficult choice, sometimes the only way to get through a business crisis is to take a step back and reassess your market. 

The COVID crisis has forced many American businesses to reevaluate their expenses, especially in relation to physical locations.

If working from home is a possibility, is an expensive office location still a necessity? If you can sell just as well over the internet, do you need your brick and mortar storefront to still be your flagship?

Microsoft knows the value of its online audience, and by closing the doors to its stores, the company is showing its ability to identify areas of weakness and make the tough decisions for the future of their business.

Business leaders of every stripe should talk notes on Microsoft’s choice. 

What has your company done in the past week, month, or quarter to make sure you’re still around when the dust settles? How are you preparing to thrive in the post-COVID economy?

Are you leveraging your digital audience as much as you should? Are there any drastic changes you could make that sound crazy, but make sense for the future of your business? 

Take a page out of Microsoft’s book and just go for it. Sometimes a cost in the short term can yield great rewards down the road. 

Free Assessment:

How does your inbound marketing measure up?
Take this free, 5-minute assessment and learn what you can start doing today to boost traffic, leads, and sales.

Topics:

Ecommerce
News
Published on July 1, 2020

Recent Articles

Can HubSpot Help My Retail Business Grow?
July 31, 2022 • 4 min read
Email and landing pages that convert, ft. Salena Knight (Inbound Success, Ep. 197)
May 31, 2021 • 36 min read
Google 'price drop' structured data for e-commerce can grab buyer eyes
March 9, 2021 • 2 min read
How Jordan West sold $250k in 24 hours using a gated launch strategy (Inbound Success, Ep. 180)
February 1, 2021 • 28 min read
Top design tips for e-commerce website success in 2021 [Infographic]
January 9, 2021 • 2 min read
4 questions to consider when building an e-commerce storefront for your small business
January 7, 2021 • 7 min read
IKEA ends 70-year catalog in response to evolving consumer behaviors
December 10, 2020 • 4 min read
What will retail and e-commerce spending look like this holiday season?
December 5, 2020 • 3 min read
Companies shift ad dollars by 18% due to increased e-commerce spending
October 6, 2020 • 3 min read
PayPal Instant Transfers expanded for businesses, in response to COVID-19
October 2, 2020 • 2 min read
3 costly Google ads mistakes brands make with Black Friday and Cyber Monday
September 28, 2020 • 6 min read
Facebook Shop to support online retailers, e-commerce during COVID-19
September 1, 2020 • 2 min read
Google releases Core Web Vitals built-in app for Shopify Merchants
August 21, 2020 • 2 min read
What online shoppers want (and how you can provide it) [Infographic]
August 15, 2020 • 2 min read
6 Shopify website examples every e-commerce brand needs to see
August 4, 2020 • 6 min read
Online giant Amazon delays Prime Day for US customers
July 29, 2020 • 3 min read
7 savvy tips to boost conversions in your retail e-commerce store
July 17, 2020 • 6 min read
Should you build your e-commerce website on HubSpot?
July 9, 2020 • 3 min read
Microsoft takes a 'new approach to retail' by closing all its physical stores
July 1, 2020 • 2 min read
Walmart partners with Shopify to expand third-party marketplace and compete with Amazon
June 18, 2020 • 2 min read
Marketing and selling on Amazon Ft. Carolyn Lowe of ROI Swift (Inbound Success, Ep. 147)
June 15, 2020 • 30 min read
Pinterest links visual search to Shop tab to ease purchasing
June 5, 2020 • 5 min read
Pandemic shopping habits become the new normal
June 2, 2020 • 3 min read
Shopify's surge tells complex story of doing business in coronavirus (COVID-19) era
May 8, 2020 • 4 min read
Yelp and Shopify release omni-channel updates during COVID-19
May 7, 2020 • 3 min read