A while back (2010 and 2011 - yeah an eternity in the digital world) I commented on Microsoft's retail strategy (see the posts Microsoft Store Unleashed and Microsoft Store - Retail Tips on Online vs Offline). I noted the criticisms of Microsoft's "slow rollout", defending that it made some sense given its position against Apple.
Well, since then, the strategy has provided successful insights for Microsoft - Washington Post noted 51 new stores in 2012, adding comment that the retail strategy may be a boon understanding customers better. The article also noted the strategy as a significant countermove to Google.
This Microsoft Store on Michigan Ave - Chicago's Magnificent Mile - is the latest in Microsoft's retail strategy started in 2008
This picture shows a Microsoft retail store on the Magnificent Mile, in the shopping center adjacent to Nordstroms. The location is notable compared to the strategy mention in the previous post - to roll out new retail stores slowly before entering more fashionable location. The Chicago location is not considered as much as a local landmark as the Apple Store built in Grand Central Station, but it is a prime retail location along Michigan Avenue which also attracts tourists as well as affluent residents.
The stores may also be advantageous as customers begin to increasingly showroom - research pricing while in store. Chain Store Age noted in a recent article that one in three shoppers showroom. This means retailers must coordinate their online and offline retail experience to be successful. It also means multichannel marketing analysis is essential to understanding the degree of cross channel traffic that exist. Although the 2013 Christmas shopping season has passed, its effect will have retailers paying closer attention to multiple paths that lead to conversion and sales.
In the meantime, I think I'll check out an XBox One….for, er, research. 😉
