NEW YORK: Microsoft Corp said on Friday it would close its retail stores and take a related pre-tax asset impairment charge of US$450 mil (RM1.925 bil) in the current quarter.
The Redmond, Washington-based software giant said it would continue to serve customers online, with team members working remotely from corporate facilities.
It was not immediately clear if Microsoft’s move would lead to any layoffs.
The company also said it will rethink other spaces that serve all customers, including operating Microsoft Experience Centres in London, New York City, Sydney and its Redmond campus.
“This is a tough but smart strategic decision for (CEO) Nadella & Co. to make at this point. The physical stores generated negligible retail revenue for Microsoft and ultimately everything was moving more and more towards the digital channels over the last few years,” Wedbush analyst Dan Ives said in a note.
Retailers, whose stores shuttered in mid-March due to coronavirus-led lockdowns, have seen a huge surge in online demand amid stay-at-home orders. – June 26, 2020, Reuters
