Microsoft Corp. today announced that it will wind down its retail operation, closing almost all of its 80-plus physical stores worldwide.

The exceptions are the facilities that currently house Microsoft’s flagship stores in London, New York City, Sydney and the company’s hometown of Redmond, Washington. Those locations will be turned into “Experience Centers” with a yet unspecified function.

Microsoft expects to take a roughly $450 million charge this quarter as a result of the move. The company will give all store employees the opportunity to stay aboard in new capacities.

Since the coronavirus pandemic forced Microsoft’s stores to shutter earlier this year, many of the company’s roughly 2,000 retail staffers have shifted to remote tasks such as training enterprise users in using Office 365. “Our retail team members will continue to serve customers working from Microsoft corporate facilities or remotely and we will continue to develop our diverse team in support of the overall company mission and objectives,” David Porter, corporate vice president for Microsoft Store, wrote in a blog post.

Porter emphasized the increased role of e-commerce in Microsoft’s sales operations. The executive wrote that the storefronts on the Microsoft website, the Xbox video game console and Windows reach a combined 1.2 billion monthly customers in 190 markets.

Microsoft’s physical stores provided a space where consumers could try Windows machines and other physical products before buying them. The closures come even as the company is actively working to expand its lineup of physical products with new devices. Microsoft unveiled two new Surface laptops in March, along with several accessories including a pair of headphones, and is reportedly planning to launch its previously announced Surface Duo dual-screen Android handset later this year.

Apple Inc., Microsoft’s highest-profile rival in the consumer electronics market, was also forced to shut many of its stores temporarily earlier this year. The company began reopening some locations recently, though it said today it’s again closing some 10% of its stores, mostly in Florida and other southern states that have seen new spikes on COVID-19 infections. It also has updated the store finder tool on its site to provide consumers with information on opening times and safety policies.

Image: Microsoft