Microsoft closes bricks-and-mortar stores in China as US tech giant slashes retail network

The exit of Microsoft Store physical locations in China reflects the US company’s strategic change in retail strategy

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Microsoft directed the operators of its authorised bricks-and-mortar stores in mainland China to shut down their shops by June 30. Photo: Shutterstock

Ann Caoin Shanghai

Published: 8:30pm, 1 Jul 2024

Microsoft Corp has closed its authorised bricks-and-mortar stores in mainland China, according to three local distributors, as the US technology giant restructures its retail operations in the world’s second-largest economy.

The company on Monday told local media that it decided to “integrate [all distribution] channels in mainland China”, although consumers can continue buying products and services through its website and certain retail partners. The company also runs online storefronts on Taobao and JD.com.

The operators of authorised bricks-and-mortar Microsoft Stores on the mainland earlier received a notice from the company that their contracts had been terminated and that their shops must shut down by June 30, according to the three local distributors who declined to be identified.

While Apple operates its own bricks-and-mortar stores in China and maintains ties with local resellers across the country, Microsoft had relied solely on independent third-party retailers to set up a network of branded franchise shops on the mainland. It is not known how many such local partners are affected.

Microsoft did not immediately respond to a request for comment on Monday.

Microsoft’s consumer sales in mainland China will now be solely conducted via the company’s website and other online retail platforms. Photo: Shutterstock

A Beijing-based distributor of Microsoft products, Qian Feng, said the retail landscape on the mainland has changed, with authorised stores losing relevance.