Microsoft Retail Stores To Open

SEATTLE — Microsoft Corp. on Thursday announced plans to open its own stores despite the economic downturn that has left many retailers struggling.

The company hired David Porter, a 25-year veteran of Wal-Mart Stores Inc., as its corporate vice president of retail stores. Porter was head of worldwide product distribution at DreamWorks Animation SKG Inc. since 2007.

Porter, who is set to start work on Tuesday, is charged with improving the PC-buying experience. The company said his first task will be to set the timing, locations and design of Microsoft-branded retail stores, which will sell computers installed with Microsoft software as well as other company products.

Microsoft has been working to revive the image of its ubiquitous Windows operating system, starting with a $300 million advertising campaign that began last fall. Vista, the most recent version of the software, was widely criticized for being slow, requiring new and pricer hardware, and not working with devices like printers and scanners. Vista has also been the subject of a series of snarky television ads from Apple Inc.

At the same time it launched upbeat new TV ads last fall, some of which struck right back at Apple, Microsoft posted 144 of its own employees in electronics chain stores around the world to talk with shoppers about Windows.

The "Gurus" seemed to be Microsoft's answer to Apple's in-store "Genius Bar." With its newly announced retail store intentions, the Redmond-based software maker is taking yet another page from Apple's play book. Apple credits its stores, concentrated mostly in the U.S., for helping boost its profile and draw new customers.

But Microsoft's timing may be off. The U.S. recession has socked the retail sector, and purveyors of electronics have been hit hard. Circuit City Inc. filed for Chapter 11 bankruptcy protection in November and said in January it would liquidate its 567 U.S. stores, cutting more than 34,000 jobs. Best Buy Inc. laid off thousands of corporate employees in December and reported same-store sales _ a key measure of retail health _ sank 6.5 percent.

Even Apple, whose iPods, iMacs and iPhones draw brand-conscious customers willing to spend more for design, was hit in the holiday quarter by the recession as average sales per store dropped to $7 million from $8.5 million in 2007.

Microsoft had no comment on the plight of Apple and the big-box stores, but said its own retail stores can help shoppers make smarter decisions about spending money on technology.

The company had set up a concept store at its headquarters with displays of Windows computers, Xbox 360 consoles and games and other items. But the company said it's meant to help stores like Best Buy see new merchandising ideas in action, and is not a prototype for stand-alone retail stores.

Comments

[4Quarters]

it is up to us to eliminate big business...back to the basics with mom & pop stores.

[NakedMoleRat]

At least at the Zune display/counter there won't be line to wait in.

Speaking of Zunes, I saw a surveillance video of a burglar in an office stealing the computer and other items on a desk. He looked at the Zune on the desk, unplugged it and threw it down, taking everying else.

[KCFreedom]

"...and their average pay will match Wal-Mart...".

I will NEVER walk into a Microsoft store, just like Wal-Mart, unless I have to use their bathroom.

[itproinct]

Microsoft's lack of Corporate responsibility to the country and to the American IT workers that they have systematically displaced with unlawful, exploited, and cheap imported guest worker labor makes me sick.

Here is a very interesting and very scary paper by Gene A. Nelson, Ph.D. from Fall 2007. This paper is predominantly about Bill Gates, the republicans, and the overall corporate American betrayal and strategy of H1 and L1 guest worker exploitation throughout the the program's history.

http://www.thesocialcontract.com/pdf/eighteen-one/tsc_18_1_nelson.pdf

There are millions of jobs that have been lost and will continue to be lost to American workers, and particularly American IT workers right here on our own soil.

I sincerely hope that President Obama, and our Democratically elected officials will put an end to the unlawful gaming and exploitation of the guest worker visa programs here in the USA immediately!

Let us get American IT workers back to work ASAP!!

[rucognizant]

Speaking of computer expertise.....I just got a message that Adobe Flash 9 is running and will shut down my computer, unless I tell it to quit. Huffinton Post is the only place I get that message....anyone know why?
( Mac os10.,411 here)

[SirHenryClinton]

As a long time Linux user, I read with quite some amusement the most recent flailing about of M$. When consumers get tired of struggling with a buggy, insecure, overpriced OS they might want to try dependable, stable, secure, and free. But, then again, maybe you're happy with a "George Bush" style operating system.

[Caiman]

The fanboysim is strong in the apple fans around here. Apparenly, Steve Jobs invented to concept of using stores to retail?! Wow.

[dutchman]

The Japanese (and now Koreans) have done extremely well for themselves by copying other's designs and technology and then making them better.

Microsoft hasn't yet figured out the second part.

[4TJefferson]

What will the stores be called? Vistas?

[hommie]

Then re brand the store vistas ver 1.2 the following year.

[chargerman]

If Microsoft really wants to make money on their new stores they are opening they should only be selling Mac's and iphones.

[MajorKong]

Note to Mac people:

It's an operating system, not a religion.

[frantaylor]

It's NeXTStep! OSX is really NeXTStep!

[dutchman]

Note to Windows people:

It's not an operating system, it's purgatory.

(Sorry MK - couldn't resist - love your posts)

Dutchman

[rucognizant]

RIght On!

[MajorKong]

Nothing against Macs but some of their owners are exceeded in smugness only by Prius drivers.

I fear that if a Mac owner ever buys a Prius a critical mass of smugness will be achieved, ending all life as we know it.

[Info08]

It's simply become too fashionable or maybe even too metropolitan to love everything about Apple and bash anything about Microsoft.

[CubFanHere]

Well they make it pretty easy to bash everything about Microsoft because the company literally has no originality what so ever. Everything they do, from the operating system, to the Zune, and now retail stores has all come from the brain of Steve Jobs and company first.

[BushSmahers]

9. Not to be outdone by Apple's NY glass cube entrance, the Microsoft version will be a Möbius Loop, walking through it will soon put you outside the store without allowing you in.

10. Store emergency exits will be unlocked at all times so people can get in anytime they want even if the front doors are locked.

[dutchman]

Excellent :-)

[BushSmahers]

10 ways Microsoft's retail stores will differ from Apple's
(combined from a Macworld.com article and the resulting comments)

1. They will be empty.

2. To get customers in the door they will be disguised as pawn shops or porn stores so you wont be quite as embarrassed going into one.

3. The store will have six different entrances: Starter, Basic, Premium, Professional, Enterprise, and Ultimate. While all six doors will lead into the same store, the Ultimate door requires a fee of US$100 for no apparent reason.

4. Instead of a Genius Bar (as Apple provides) Microsoft will offer an Excuse Bar. It will be staffed by Microsofties trained in the art of evading questions, directing you to complicated and obscure fixes, and explaining it's a problem with the hardware—not a software bug.

5. The Windows Genuine Advantage team will run storefront security, assuming everybody is a thief until they can prove otherwise.

6. Store hours are undetermined. At any given time the store mysteriously shuts down instantaneously for no apparent reason. (No word yet on what happens to customers inside).

7. Stores will be named Microsoft Live Retail Store with PC Services for Digital Lifestyle Enthusiasts.

8. Fashioned after Microsoft's User Account Control (UAC) in Vista, sales personnel will ask you whether you're positive you want to purchase something at least twice.

Last two in next post

[cspencer81]

#5 is hilarious...the 4 and a half year old girl shrieks, but I'm a PC!

[petzl]

Microsoft should take the lead in offering systems that are ALREADY compromised by viruses and malware. Be the first on your cubicle row to have a Microsoft-Certified pre-zombied PC. Why wait for some Russian or Nigerian to hook you up to /their/ botnet? go with the internationally recognized leader in unreliability and frustration causation. And with Microsoft's patented virus update feature, your PC will always have the most current version of all popular virus and malware technology.

[ObamaSheeple]

Because 95% of the computers in the world are PC. No self-respecting hacker would waste their time creating viruses for Macs. Only a few individuals with money to burn buy Macs.