Microsoft to open retail stores
 

http://biz.yahoo.com/ap/090212/tec_m...il_stores.html

Microsoft hires Wal-Mart veteran to oversee new retail store plans despite recession

SEATTLE (AP) -- 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.

Interesting...

Now pissed off PC users will have a live person to yell at when Windows crashes their computer and all the other joys of owning a PC :thumbsup

Not a bad move, just as long as they don't try to snipe at Apple's designs.

If anyone has the marketing money to launch it they do. It could work.

good good. MSFT has enough cash to screw up a few times and still be solvent. only a matter of time now until they win at conquering the worlds.

Well that's good. Looking forward to that.

bad bad bad

perfect timing

this is a brilliant move especially because of the bad economic times.

Vista works great if all the hardware is certified logo complient
these stores can carry only logo compliant pc which will not crash, or fuck up (at least not as much as non compliant shit)

as more and more people associate good pc with the microsoft stores, they will take business away from the other chains.
Of course they will show their channel partners who if they make sure that the entire pc is logo compliant they can have pc that will not crash either and therefore will not lose their customers to microsoft stores.

which will shift sales away from non compliant stuff to logo compliant stuff in all their channel partners too.

Def not a place I would want to be working at.

That looks a nice idea...

Great idea...wrong time to implement it. :2 cents:

It's a horrible idea, I think :)