Microsoft to shut physical stores globally

Four stores - including the relatively new London facility - will become "experience centres"

Microsoft has revealed plans to shut its 80-plus retail stores, taking a hit $450m in the process.

The vendor said that four stores globally - in London, New York City, Sydney and Redmond - will remain open as "experience centres".

Microsoft corporate VP David Porter said: "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."

Microsoft's physical stores are predominately in the US, with a single store in each of Australia, Puerto Rico and England. There are three stores in Canada.

The London branch opened to much fanfare last year, partly because of its close proximity to Apple's own retail store.

Microsoft praised the work of its retail team since stores were shut as a result of the COVID-19 pandemic, claiming it has trained thousands of customers via virtual platforms.

The vendor did not allude to any potential redundancies in its press release, but told The Verge that there would be no layoffs.

It did however say: "The retail team members will serve consumers, small-business, education, and enterprise customers, while building a pipeline of talent with transferable skills."

The closing of the physical stores will result in a $450m pre-tax charge in the vendor's current quarter, which closes at the end of this month.