Microsoft, You Can't Be Serious About Retail, Right?
Friday, February 13, 2009 at 10:03AM 
David Porter, VP of Retail Stores for MicrosoftA few weeks ago there were some concept photos of Microsoft stores floating around. We were quick to dismiss any chance of a Microsoft store making its way to a mall near you. However, yesterday may have changed everything. Yesterday Microsoft announced David Porter would be holding the position of corporate vice president of Retail Stores.
Among other jobs Porter worked at Wal Mart for 25 years. This story practically writes itself from the press release:
“I am excited about helping consumers make more informed decisions about their PC and software purchases, and we’ll share learnings from our stores with our existing retail and OEM partners that are critical to our success.”
Defining the time frame, locations and specifics for planned Microsoft-branded retail stores will be Porter’s first order of business.
I'm sure if Microsoft actually gets to the point that they have stores opened, and those stores are even modestly successful, I don't think they'll be sharing that information with other partners. Call me cynical, but I just don't think it's in their DNA (or Apple's for that matter).
The big question though, is what exactly would these stores sell? Microsoft doesn't make computers. Will they risk alienating certain partners by choosing some brands over others in the store, or will the store simply offer accessories, like Microsoft mice, and everyone's favorite, the Zune?
What benefit does a Microsoft store bring the consumer? Unlike Apple, who could show potential buyers what makes the Mac/iPod/iPhone so special, what will Microsoft showcase when they don't make the hardware? "Here, let me show you how easy it is to use this Microsoft laser mouse!"
I'm pretty sure everybody who wants an xBox can find one, and I'm also pretty sure just about everyone who wants a Zune already got one.
It looks like the only thing they have to gain is the burden and expense of retail stores, and opening them in less than ideal conditions, no less. When Apple opened their first stores, people had little familiarity with the products, and it gave them a chance to try them in a welcoming environment. I think everyone who wants to try Microsoft has had a chance. Maybe that's the real problem
Reader Comments (12)
spot-on assessment
Well, I suppose we could all feel the box in which it comes in if we all had jobs to buy the OS, but it certainly wouldn't work om my Macs!
I struggled to understand why anyone would be drawn to a Microsoft store as a consumer. I can't imagine what the draw would be.
If it's all Microsoft products, then yeah maybe a few folks would wander in to buy an Xbox, or possible a Zune, and maybe they need to upgrade their copy of Office. But that's about all I could see. I just don't see folks waking up on a Saturday and deciding now is a good to see what wonderful stuff Microsoft has for sale.
It seems to me that the "killer app" at the Microsoft store would be is their verision of the Genius Bar and the service that would install your software for you. But why would I go to the Microsoft store for that when my locak Best Buy will do the same thing, and offer me non-Microsoft products that would meet my needs at a better price/performance level?
If this store concept is just one of the steps towards Microsoft building their own hardware so they can control the entire environemt (look at the Zune and Xbox as examples) then a retail store makes more sense.
They'd be on every corner, but none of them would open.
Battle of the discount store execs . . . it's Wal Mart Vs. Target. This guy is no Ron Johnson ; )
Well...it isn't a horrible idea.
Consider "The Mojave Experiment." Lots of people came in saying Vista sucks. Then they sat down and used Vista and came away thinking it was pretty good. What does this tell Microsoft?
This tells Microsoft that they lost control of the message. Microsoft shipped Vista and expected their partners and pundits to hail it as the next big thing. They didn't. Add in Apple's clever advertisements and the consumer figured they would stay away from upgrading.
One of the reasons given by Apple for starting their own line of stores was to be able to get their message out. Rather than depending on some retailer like CompUSA to create a "Mac Ghetto" in the back of the store or sticking a bunch of broken-down Macs in Fry's or Sears or something like that, they figured they would build a store where people could see Apple's computers and operating system in a positive light. It was generally figured that as long as the stores didn't lose money (or too much money), they would be effective at helping Apple re-introduce consumers to their products.
Microsoft's stores can work in a similar fashion. Want to try out Windows 7 before you consider buying a new PC? Head on down to the Microsoft Store. One of their sales people will make sure that you walk away with--if not a new computer--at least enough buzzwords so that you can order one on-line and have a PC which will run Windows 7 with all the appropriate bells and whistles. Or explain the difference between Windows 7 Home and Windows 7 Home Premium.
No, I don't expect the stores to be a rousing success. But if they can at least break even, it will give Microsoft a way to connect with consumers and, hopefully, get their message across.
This is just flailing around ... it's like Microsoft has no better idea than copying everything Apple does, whether it makes sense for them or not.
Apple is worth emulating.
They will open huge stores about the size of current super Wal-Marts. They will only sell MS made items and show how MS made items work - software and hardware. Of course they could sell this out of an area the size of most restrooms at a Wal-Mart but they will need the rest of the room to install help area's - like Apple Genius Bars. LMAO!!!!
Hmm, you could play with their multi-thousand dollar computer table that lets you touch, drag and open files like the one used on CNN, but you certainly can't buy one. Maybe you can do an Excel spreadsheet on it or play a computer game on it, but you certainly can't buy one. You could play with a Zune and compare it with the ipod you've had all these years, but who'd want to transfer all their music to a new music player? You could play on an Xbox, but don't you already play with one with your friends? You could check out Vista or Windows 7 on a PC, but Microsoft has to decide which brand of computer to use without offending other PC makers—but can't you already do that at a Best Buy or a Staples already?
The best thing about an Apple Store is that I know that I can always come in to check my email or write and send email, I can surf, AND I can use the Men's room. They've already converted me! Lectures, classes, performances, and a place to duck in out of the rain is just gravy.
Shoes? Didn't Microsoft do a commercial with shoes with that Gates guy? Oh, I get it. They're also going to sell or give away shoes. Now, it all makes sense.
Final thought:
with the Economy the way it is, perhaps Microsoft will rehire some of the employees they laid off to run their new retail stores. Construction workers. plumbers, realtors, pizza deliverymen, etc, will get money and jobs. They will pay taxes and the Economy gets better. We will look at Microsoft in a light we've never seen them in, and they will end their "I'm a PC" commercials with "Microsoft. The Heart inside your PC". Fade to black. ECU of a tear rolling down Bill Gates' cheek, as Jerry Seinfield passes him a tissue.
The only strategy I can see working is if Microsoft uses these stores to show people how well their online services will work with all their gadgets (Apple's included). Turn them into "coffee shop" equivilents, plant a few shills and astroturfers to big up the Microsoft brand message and ... oh ... back to loss of trust again.