First Microsoft retail stores to open this fall
Microsoft confirmed on Wednesday that it is planning to open its first stores this fall, with at least some of the locations likely to be right near an Apple store.
"As we progress on our retail strategy there will be scenarios where we have stores in proximity to Apple," a representative told CNET News. "We are on track to open stores in the fall time frame."
The fall timing is not surprising. One would assume Microsoft would want to have the stores open in time for Windows 7's October 22 retail launch and for the holiday selling season.
Turner
(Credit: Microsoft)I'm hearing that Microsoft will open a few stores this fall, with more coming in 2010.
Microsoft first announced its plan to enter the retail arena in February, when it hired David Porter, a Wal-Mart veteran.
Speaking at the Worldwide Partner Conference in New Orleans on Wednesday, Microsoft Chief Operating Officer Kevin Turner told people to "stay tuned" for more news on the retail front.
"And stay tuned, because we're going to have some retail stores opened up that are opened up right next door to Apple stores this fall," he said. "Stay tuned, just stay tuned."
Turner promised partners that the company would share what it is learning with other stores.
"Every single thing we learn in those Microsoft stores that we put on the street we're going to share that openly and transparently with all of our retail partners so that they can do the exact same thing," Turner said. "And we're going to get that customer feedback directly. We're in the game for the long-term here."
Turner, himself a former Wal-Mart exec, noted he has some experience in this area. "And I know something about retail, and we've hired an incredible team to do an incredible job on retail."
The software maker has also opened an online software store that sells products directly to customers.
Last fall, Microsoft set up a "retail experience center" in Redmond. (See video below--Silverlight required, however.) However, at the time a Microsoft executive told the Seattle Post-Intelligencer that the company wasn't going to open its own stores.
In the beginning of the decade, Microsoft had one retail outlet--at the San Francisco Metreon mall. However, it closed that location in November 2001. It had been rumored to be eyeing a Times Square location back in 2005.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
I can't stand it when companies take the "gas station approach" when picking store locations.
There's good and bad about it though. It's obviously a destination store so it doesn't matter where you put it- people will find it. It's not the sort of thing that is a idle mall shopper sort of thing, but I could be wrong. Depending on the content, it may offer more impulse buy items like MP3 players. I don't know about retail enough in malls to speculate well there.
Putting them near Apple stores? Priceless. I'd love to see that. Head to head competition. It would be quite entertaining to see them side by side, fans of both heckling the other. The amount of rivalry would be wonderful to watch in action. Kind of like watching two used car sales lots next to each other.
You don't throw out a good idea because the competition came up with it.
Die Microsoft Die!
Amen
Or it could also be a huge success. Nobody has any sort of basis to go on here. Your opinion is worth as much as anyone else's in this case.
Personally, I hope it succeeds. Competition means my next Macbook may have more features at a lower price. :)
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As far as the "gas station approach" (love the term, BTW)? A mall is a mall - you'd expect to see 'em together.
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Dunno if there would be heckling or such. The Apple stores are usually too busy for sales critters there to do that.
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Microsoft would likely sell some Zunes, some keyboards and mice, and what... boxed copies of software?
If they sold xboxes and/or xbox games, the game stores in that same mall would get rather pi$sed (hint: never anger your retail partners. They have nasty ways of getting even - like promoting your competitors' products and stuffing yours into the back). Sure, Microsoft promises to "share" their lessons-learned and data with 'partners', but seriously - competing with your partners to do it isn't exactly the best way to carry that education out.
If they sold PC's and such (like Apple sells Macs), then which OEM(s), and who provides the warranty? And like Apple's stores, can you take a splattered laptop or PC to the store and get it worked on right there? They'd have to do a Geek Squad like deal for that, which means overhead...
Dunno - I don't see this as much more than an experimental trial balloon, and I'm not seeing what would be present that would make the whole thing work in the long-run. If someone has any insight and ideas, I'd love to hear them.
With that in mind, the Apple store is constantly busy with people shopping or getting technical help at the genius bar. The Sony store is pretty much empty for the most part.
I would also like to know why in those laptop hunter commercials that Microsoft puts out, no one buys a Vaio.
I would not be surprised at all if they used the name of 'Bing" instead- that's the sort of trendy popular type of name that mall stores have these days, and it would tie in nicely with their other online services.
I could see Bing as a store name easily.
You guys are worse off than I thought. Reminds me of those punk white kids with their sagging pants and hats on sideways talkin bout yo yo sup? It's like Michael Steele trying to be cool.
MS is a joke, but it's you I'm laughing at. I will really enjoy watching MS throw millions out the window on these failed attempts to copy Apple once again.
Amen
Apple didn't invent trendy retail store concepts. They copied that from others. Your comment right there is debunked as myth and fiction.
I suppose if you find the idea of a computer store as a failure or lacking style or trendiness, you had better tell Apple what a failure their stores are then. :)
Amen
I'm sure the folks at Sony would be a bit miffed at that one...
Amen"
I know who knew Apple fanboys could keep this up for so long.
"Will the stores have an 'idiot bar'? "
Sorry, that's next door at Apple. (JUST KIDDING! You made it too easy with that setup) :)
@Bogusbasin:
""The blind loyalty and ignorance is nearly palpable. I am really really enjoying this! Keep it up!"
That's the sort of comment that demonstrates the blind loyalty towards Apple products that makes all this so much more interesting to speculate about. Thank you for demonstrating it so perfectly.
Signage: "Please check your Apple bag at the register."
(Note: typed partially in amusement on my Dell desktop machine.)
Other than that what cool retail prodcuts does MicroSoft have? Azure? Bing? Money?
I'm going to predict a fail unless They sell other peoples products.
I'm sure with how close of ties they have with HP and Dell and that they are releasing Zune HD as well this fall they will have plenty of toys.
I'm rather surprised they don't have an iPhone app to replace the Windows Mobile devices they use now for their sales system. It seems like an obvious use.
@Renegade Knight:
The prototype retail experience had products from a variety of OEM's from computers to accessories to even things like clothing. XBOX game titles on T shirts and such seem to be a popular item these days. I must admit I was eyeing the DOS command prompt T shirts myself. "FDISK THIS" Heh.
Apple's 'registers' use Windows CE embedded for PoS, which is hardly the same thing as "running Windows". Apple does not make PoS embedded OSes, nor do they make the kind of handheld "register" that they use, so it only makes sense to use this product. Apple has never been in that business.
Windows CE is a Windows OS product. Windows Mobile is the latest version.
Apple does make the iPhone and Touch products. There are currently products in the Apple Apps Store now that offer this sort of connectibility to databases. I can right this very moment make an iPhone / Touch into such a portable register by using the products they have available in the Apps Store along with Apple's own products.
I just don't know why they are not doing it now. It's been two years since they have had this ability. Perhaps they don't intend to do it, but that doesn't change the fact that Apple is relying upon Microsoft products for their own sales in stores.
That's not a bad thing. Just clarifying the misunderstanding you may have had there.
What in the heck are they going to sell? Ideas? This is going to go over about as well as "new" Coke. And, Microsoft already has a retail store - it's called Costco and Walmart.
Sheesh!
There's a lot a store like that can offer.
Amen
Yeah, just like the big bad media is out to get poor Sarah Palin and any other right wing GOP types. If they are against poor MS, they must be wrong right? At what point do you start to realize that maybe MS isn't exactly good? The pendulum is swinging. The monopoly is crumbling. It's a great time to be alive!
Amen
"Keep telling yourself that VegaTroll. You crack me up. You really do. I almost feel sorry for you. Pathetic."
Why thank you! I do try dearly hard to entertain you as much as I can. I appreciate the honor you have bestowed upon me with your kind comments. Your reputation as an unbiased and truthful individual merits every bit of respectability that you have earned over your time here on CNET.
Yes, thank you indeed for your response. I have a nice warm fuzzy in my tummy as a result.
Oh wait, that was a chili cheese burrito. Sorry, I get the two confused at times. :)
Keep telling yourself the worlds most profitable software company employing over 100,000 people globally and over 50k in North America alone is going to crumble... you are in for a long hard reality my friend. The profits will keep flowing in, the world will keep turning, and your dream of the downfall of an American company will turn into the nightmare as a continued revenue generator.
Pathetic is someone who comments every other second with nothing more than a 4th grade slam that has absolutely no facts or even creativity to back it up.
You are the troll and you are the one we all feel sorry for. YOU are pathetic and obviously the greatest hypocrite that I've seen for a while on CNet. Kudos!
He listed the things in the prototype retail experience and gave his opinion on a few things. "They weren't selling Ford at all and it was kind of nice to check out the features without having a salesman trying to sell you the car." Wouldn't a lot of people here like that?
There IS a lot a store like that can offer. If it's like the Microsoft Retail Experience, there's more variety to it. Variety is a good thing, hmm?
(Oh a slightly unrelated note, if this store sells some of those computer shirts ThinkGeek sells I'm definitely going there.)
I think the major problem is that MS is again copying Apple without thinking. Apple had a problem where most people did not have direct experience with Macs, and the experiences they did have were 10 years old or were in a Big Computer Store, as described above, where they were actually steered away from the Macs. MS has persuaded itself that this is the problem with Vista and Zune: great products that aren't being presented well.
Problem is that the Zune got as good or better representation as the iPod -- outside of Apple Stores, of course. Problem is that a guru running Vista for a consumer could persuade them that it was much easier to use than they had previously believed. So we'll see...
Heck, from the article, it remains unclear what MS's goals are with the stores (besides buzzwords like "excellence"). The only thing that looks anywhere unique is that they will use them as a retail lab, of sorts, where they will figure out what works marketing-wise, then pass it on to their "partners".
My guess is that they've lost a lot of leverage over their "partners" as a result of various anti-trust rulings in the past and now they figure they have a way to get around that: they can have a barely-stable Dell laptop with a poorly-configured Linux to show how stupid it is to order a Dell with Linux pre-installed. Or they can reward Dell with prominent displays -- like a "Dell Inside" on one of their fancy touch screen table displays -- if Dell plays ball.
Not to mention that MS has shown itself to be the ultimate Apple copycat ("Whatever you can do, I can do better") and the ultimate "throw it at the wall and see what sticks" company who figures that by dumping money into a sector they might get lucky but at a minimum they will cause financial pain to their competitors in that sector.
It wasn't a very good retail experience. I think that's more Best Buy's issue than Apple's, but it shows how one company can end up getting isolated through bad store training and management. If I was looking to buy a computer that day, I would probably have better luck over where there were plenty of reps available and ready to help.
Sure, service will be slower and parking will be a hassle, with an increased chance of crashing (your car) getting in and out of the poorly designed parking lot, but who cares?
Windows Store 3.1, the store for the rest of us!
Amen
Your prediction would lead to Microsoft having a huge success on their hands. Are you SURE you're the real ikramerica-2008? Usually you are all doom and gloom about all things Microsoft.
Don't focus on Microsoft - only products. They have a lot of business partners and will be offering hardware from other vendors.
Renegade: You might want to Bing "XBOX". Or how about the keyboards and mice that MS makes. I shudder to mention it lest the fanboys go apoplectic but maybe even a Zune or two?
I look forward to seeing a Microsoft Store in my local mall. MS makes enough hardware that they shouldn't have to let their retail message be completely controlled by their distribution channel.
Hey, pass me a ScottTissue and please go Oce a copy of that TPS report for me, would you.
FAIL.
Plus, it sounds like the sound Mail.app makes when I get a new email message.
Mall stores- focused and intense for singular products. Higher priced singular sales.
Box stores- more of everything, more general sales.
I expect a compromise of a 2-3X sized store compared to an Apple store, but let's toss out an interesting notion:
What if Microsoft opened up their own line of box stores like Bestbuy? There's now enough space in the market for them to do so with Circuit City and CompUSA out of the picture. Offer similar products in addition to the MSFT focused items. Make it a real destination center for a lot of things. Could it work for them? Or is that model a done deal and no longer profitable as experienced by those failed chain stores?
What if MSFT simply bought out BestBuy? They have the cash to do it if they wanted to. I'm not sure there is any legal blocks to it either. Not sure there is a benefit though.
Just some wild and crazy thoughts. Nothing to back them up at all beyond wild speculation.
Amen
Sheesh, really now, BogusBasin... you're just embarassing yourself.
but bad for other stores like bestbuy or gamestop
because people instead of going to those stores to get a pc, a zune, xbox.
will prefer to go to the ms store.
a plus in Microsoft stores for me, is using ms surface to browse products,a nd all the amazing technologies Microsoft has. Microsoft tag, imagine just scanning the product in a special camera, and getting trailers of the game, or video reviews of the product.
Remember, a mall is not public property. It's private. Your right to free speech or to hand out CD's does *NOT* exist there.
The last mass hysteria I remember about a Microsoft product was the massive lines of those that camped out and waited for Windows 95. Massive coverage and excitement buzzed around that product, and helped Microsoft ride a tide of excitement and great PR. What do we have to be excited about from Microsoft now? Not much. Their products and services do not evoke passion from those that use them; aside from a handful of XBox loyalists, how many people can you find that truly LOVE Microsoft, or Windows for that matter? Sure, they are the standard when it comes to Office and OS software- but people just aren't excited about it anymore. What sets the Apple retail stores apart from what Microsoft could offer?
+Apple retail stores are staffed by knowledgeable associates that use, and love the products. They'll usually go above and beyond the call of duty, to indict another into their club.
+(Not to start a flame war but..) Apple has it right with unified hardware. Simply bring your Mac to the Genuis Bar, and it can quickly be diagnosed. With Microsoft partnering with OEMS that sell the absolute cheapest hardware, the support aspect could be a nightmare. When people look to buy an expensive electronics item, they want exemplary support to back it up- Apple retail stores are ready to help.
+The stores alone are a testament to what Apple stands for. With a number of high profile, highly trafficked stores that are modern design marvels, people can expect the same from the products inside
While I don't want to start some kind of flame war of Apple v Microsoft, I just don't see how a retail store can really help to push "their" products. What will they do differently than Wal-Mart, or Best Buy, or Target? Will having Windows and XBox at their store make it any different or better? And I seriously doubt that their recent Wal-Mart hire will be able to do much either. Their brand and image is tarnished, and people simply do not have the same joy for Microsoft as they do for other brands.
monkeyfun, seaspray, vegaman
There are three people I know that would give their first born at the MS alter.
Amen
Having people (shoppes and employees) love a product will help to drive foot traffic. Once they are in the store, you've pretty much got them. Inform them, entertain them and then close the deal.
Microsoft doesn't have many people that love their products. Almost every store that sells Windows, Office, Xbox, Zune does it pretty well. These massive retailers are doing it right, nothing is broken. Microsoft thinks that they can put up shop and people will just.. go there? Why? What is the incentive? What does this store concept have that others don't? People are happy enough with getting their wares at big box retailers, and (I'm assuming) wont be likely to go directly to Microsoft's stores.
Demographics:
18-25: These guys usually illegally download software or buy it online. They know what they want, and how to get it. Microsoft store for these guys? Maybe an XBox game or two, but thats about it.
26-35: These are the busy professionals; they learn about new products from news glances or from their peers. Knowing their youth and intelligence, they want it quickly and without hassle. Online shopping is key for them, or maybe they can get the new Windows while they do their grocery shopping at Wal-Mart. Microsoft store for them? Pointless; they don't want to deal with high pressure sales people touting useless info.
36-50: Double duty parent and full time job? Who has the time to run the kids to soccer and then head off to the Microsoft Store? They'll usually get their news and info about hot products (which definatelly aren't Microsofts') from their kids.. (Go back to 18-25..) Microsoft Store for them? Not likely. Why? With a live in "tech head" in their house, they can get all the help they need for free.
Where do you see Microsoft stores fitting in?
(You could just as easily turn around and say "Why, then, are Apples stores doing so well?" Apple has a great image of polish, refinement and excitement. Call it the iPod halo if you want, but people are excited and passionate about the products and the company enough to head into the store by the droves.. see my comment above).
I type this on a MacBookPro running OS X using FireFox about a Microsoft story while in another tab looking at the prices of used SGI systems that I like to collect.
I'm sorry, what was that you were saying again?
I'm in the tech field to repair whatever someone brings me, whether that is a PC, Mac, or orange juice blender with an ethernet port on it. I fix whatever is broken.... don't get too close to me or I'll be tempted to try to repair you as well. :)
Most people want to simply buy their product and get home.
- by naterandrews July 15, 2009 1:39 PM PDT
- The future of Microsoft Retail stores? Two words.. Gateway Country..
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