Who wants to shop at the Microsoft Store?

Thu Jul 16, 2009 5:24PM EDT

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With one notable exception, vendor-specific computer stores have been an unmitigated disaster.

Raise your hand if you remember Gateway Country Stores. The cow-themed company had 188 physical outlets as of 2004, but terrible sales (despite boom times) forced the company to shutter them all, firing 2,500 workers.

Dell has also dabbled in physical stores, with equally dismal results. Its flagship outlet in Dallas' Northpark Center closed after just two years, shortly after it confessed it couldn't even support 140 or so tiny mall kiosks, handing them over to people hawking costume jewelry, cheap sunglasses, and Shrimp Chips.

So, really, why wouldn't Microsoft want to get in on the game and open its own Microsoft-branded stores?

Think what you want, but they're coming, according to a speech given yesterday by the company's Chief Operating Officer Kevin Turner (pictured).

Microsoft hinted at brick and mortar stores earlier this year, but yesterday was its first big acknowledgment that the plan was shaping up.

The goal, of course, isn't to emulate Dell and Gateway, but rather to ride that shiny white elephant, Apple, which has turned the computer store from a depressing tomb filled with badly dressed nerds and moldy carpeting into a glossy mecca for the digerati and the tourist crowd alike.

There's a problem with that idea, of course, and that's that Microsoft hardly has the cachet of Apple, nor does it really have much the average Joe is going to make a special trip to the mall in order to buy. ("Hey Mom, let's go to the Microsoft Store and buy the new PowerPoint, pleeeeeeeeeeeeeeeeeeeeeeeeease!!!!") Yes, it's got Xbox, but it sounds like that's not going to be a real focus.

No one really knows what to expect, however. All Microsoft is saying is that the stores will be more about spreading the Microsoft brand than trying to move product.

Alas, that may not work out so well. As Dell and Gateway can probably attest, physical stores are an awfully expensive way to try to get the word out about your product if you can't make money off of them. Physical traffic is always going to be limited, and stores have to be manned with personnel -- personnel who bathe and get to work on time, no less. Mall store space isn't exactly cheap, either. Nonetheless, Microsoft says it wants to get into Steve Jobs' face a little by opening its stores "in proximity to Apple."

The company says the stores are on track to open this fall, but has offered no other details on timing, locations, or the number of outlets.

Comments on Who wants to shop at the Microsoft Store?

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  • 2 Posted by shlomoavanade on Thu Jul 16, 2009 6:27PM EDT Report Abuse

    Everybody forgets how little cachet Apple had before The Apple Store launched. Prior to the Apple Store, Apple was cute and friendly, but nowhere near cool. The creation of the Apple Store, perhaps even moreso than iPods, is when Apple started being an image instead of just a computer maker. Microsoft wants that, and they have better product (Surface) than Apple for eye candy.

  • 3 Posted by jewelryczar on Thu Jul 16, 2009 6:28PM EDT Report Abuse

    Since Microsoft doesn't make it's own brand-specific computers, I wonder if they are going to partner with big PC makers to offer hardware in their stores as well. A "Microsoft-branded only" store sounds tough, but if they also sold partner's hardware along side their own merch, that would be a different business model entirely. The Apple store is truely a one-stop shop: computers, software, and accessories. If Micorsoft is missing the hardware, it's a very limited-product store........VERY limited!

  • 4 Posted by lewinjon on Thu Jul 16, 2009 8:26PM EDT Report Abuse

    I remember going with a friend to a Gateway Store because he wanted a new laptop. What a waste of time! They had nothing there for the buyer to take home, everything had to be ordered from Gateway. Well...we could have done that from home by net or by phone. The stores had nothing to offer! I just don't see what MS has to offer with their own stores. Apple has done a great job in not only stocking their products but in providing education about using their products and creating an attractive store that people want to visit.

  • 5 Posted by monko12105 on Fri Jul 17, 2009 2:04AM EDT Report Abuse

    I cant wait to see the look on Bill's Face when he sees hundreds of people flood in to the apple store while his store is empty and developing dust and cobwebs. Everyone knows Ipods and Iphones are better than EPIC FAIL ZUNES.

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