Microsoft has announced that it will close all physical stores, only a year after the flagship location in London was opened.

Since the closure of many stores in March due to Covid-19, Microsoft has taken a new approach and put even more focus into their online services and platforms. New services online will include one to one video chat support, online tutorial videos, and virtual workshops.

Microsoft says it will continue to support customers online, with retail team members apparently transitioning to working remotely and at Microsoft corporate locations. Remote work will be increased including online sales, training and support. Microsoft is also investing in new digital storefronts on microsoft.com, and dedicated online stores for Xbox and Windows.

The closing of Microsoft Store physical locations will result in a pre-tax charge of approximately $450M, including primarily asset write-offs and impairments, however Microsoft hopes this will be offset through significant growth via digital storefronts.