Dive Summary:
- Microsoft has announced it will partner with Best Buy to open 500 specialty shops within Best Buy stores throughout the U.S. Microsoft hopes to boost retail sales and plans to sell exclusive Windows PCs and tablets, along with other brand merchandise.
- The announcement means that Microsoft intends to hire an additional 1,200 Microsoft trained sales associates and employees to assist new customers visiting the retail locations.
- Microsoft currently controls around 70 domestic Microsoft retail spaces throughout shopping malls and kiosks in the U.S. Microsoft’s new plan to revamp sales with the store-within-a-store approach "offers a large-scale, hands-on customer experience" of the company’s signature products, states Tami Reller, head of marketing at Microsoft's Windows unit.
From the article:
Part of the problem has been that Microsoft has struggled to get the attention of shoppers at large retailers such as Best Buy due to the profusion and popularity of Apple's (AAPL) iPad and tablets running Google's (GOOG) Android system. … The store-within-a-store effort is a key plank of Best Buy's turnaround plan, which includes dedicating more space to more-profitable products like tablets and mobile phones.