Microsoft’s plan to close retail stores won’t affect performance in nation

Microsoft’s decision to stop operating many of its brickand-mortar retail stores won’t affect its business in China, a company spokesperson told the Global Times on Sunday.

The US tech giant announced on Friday a strategic change in its retail operations, including closing Microsoft Store physical locations.

Microsoft’s licensed stores and 3C electronics retailers in China will not be affected by the change as its physical retail stores in the Chinese market are all authorized stores and 3C electronics retailers.

Meanwhile, cooperation with Chinese local retailers is expected to bring consumers a comprehensive offline experience of the Microsoft ecosystem, the spokesperson said.

Microsoft said that it will keep its London, New York City, Sydney and Redmond, Washington locations, but they will be re-imagined as “experience centers,” according to CNN.

Microsoft has 83 stores worldwide, including 72 in the US, and several others abroad where it showcases and sells laptops and other hardware, according to the company.

Liang Zhenpeng, a veteran industry analyst, told the Global Times on Sunday that he sees no impact from Microsoft’s move on the Chinese market, even if stores in China are closed in the future.

“Chinese users are more leaning toward online-purchasing and in terms of Microsoft, their competitive products are mostly in software, not hardware like Apple, so physical stores will not be very helpful for sales,” Liang said.

Although Microsoft’s decision to close physical stores is meant to ease losses due to dropping customer flow in stores amid the COVID-19 outbreak, a major reason is the company’s adjustment of its product orientation, Liang said.

“Microsoft’s major business is in software development and although it has launched some hardware products such as the Surface laptop, it is far from being successful compared with similar products offered by rival Apple,” Liang said.