Microsoft to close physical stores, take $450 million hit – AOL

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(Reuters) – Microsoft Corp stated on Friday it would close its retailers and take an associated pre-tax possession problems charge of $450 million (₤ 363 million) in the present quarter.
The Redmond, Washington-based software application giant stated would continue to serve customers online, with employee working remotely from business centers.
If Microsofts relocation would lead to any layoffs, it was not immediately clear.
The company also stated it will reassess other spaces that serve all consumers, including running Microsoft Experience Centers in London, New York City, Sydney, and Redmond campus places.
” This is a tough, however smart tactical choice for (CEO) Nadella & & Co. to make at this point. The physical stores generated negligible retail revenue for Microsoft and eventually whatever was moving increasingly more towards the digital channels over the last couple of years,” Wedbush expert Dan Ives stated in a note.
Retailers, whose stores shuttered in mid-March due to coronavirus-led lockdowns, have seen a huge rise in online demand in the middle of stay-at-home orders.
( Reporting by Akanksha Rana in Bengaluru).