Today Microsoft opened the first store in a renewed retail endeavor at the Scottsdale (Ariz.) Fashion Square shopping mall, with a large crowd drawn by tickets to a free Ashlby Tisdale music concert, free Zune HDs to the first five in line, $25 gift certificates in a gift bag, and highlighted by the company’s gift of $1.1 million to local charities. Microsoft COO Kevin Turner and other company executives in suits cut the red ribbon on the ground-floor, 60-foot wide store, and a curtain dropped to reveal a white interior, wood floor, wood display tables and front-to-back video screens on both sidewalls. Store employees wearing T-shirts in official Microsoft colors enthusiastically greeted the first visitors with hand-clapping and yelling. See photos of the store.
The store’s interior design held no surprises—the storefront is all-glass, the lighting is bright, laptops from various companies are displayed on tables and on display counters along the walls, and a service area is at the rear of the store. There are two Microsoft Surface technology tables, and a small display of cellular phones. An Xbox 360 area at the back of the store sports a large flat-screen display and controllers so visitors can try out video games. Near the rear of the store is the “Answers” suite that provides technical service for customers.
The interior space is interrupted by a line of large, white support columns that runs front-to-back on the left side of the store. Centered at the front of the store, over the door, is the new square logo for Microsoft’s stores.
The blond wood floor matched the wood of the display tables. The table tops are black, non-wood material. Promotional materials are displayed in curvy white acrylics that have black bases.
Local reporters said the line was a mixed collection of Ashley Tisdale fans hoping to snag one of the 1,000 free tickets to her 5 p.m. concert or 100 opportunities to get her autograph, along with persons interested in the retail design. One man in line he came to give Microsoft “one last shot” at improving its products and operations. The first five persons in line appeared on Wednesday afternoon, and recevied free Zune HDs from Microsoft for their early arrival.
Those entering the store were given gift bags with a $25 gift certificate, some mints and other gimcracks.
The store is managed by former Houston Galleria Apple store employee Cheryl Hibbard, hired just last July. Earlier, she told the MicroSpotting Web site that hiring full-time employees for this first store was one of the “greatest gifts” that Microsoft could make to the surrounding community, which has been “impacted heavily” by the economic downturn. The store employs from 80 to 100 persons, Microsoft has said.
Just before the 9:30 a.m. opening, Turner told the waiting line crowd that many persons had said to him, “OK, Microsoft. You’re going to do retail stores. What’s up with that?” Turner answered, “You know what? Our customers—you—have asked for retail stores, and that’s why were doing retail stores. We’re going to offer that customer choice that you want, and that you deserve.”
He said the stores would offer a way to show customers how to personalize their software and hardware—”to make it your own.” The stores will also offer “great value,” Turner said, adding that customers have asked for more value, “and we’re going to show that and share that with you today.”
Lastly, Turner told the crowd, “We’re going to give you great service.” He said the difference in service will be “the quality of the people that we have on our Microsoft retail team right here in Scottsdale.”
Turner thanked a long list of persons in general who helped bring the store’s to fruition, and David Porter by name, the initiative’s “first employee” and now vice-president of Microsoft’s stores. Porter stood to the side of the opening ceremonies and never spoke to the crowd.
Turner concluded, “This store is a continuing committment by Microsoft to get closer and closer connected to our customers. And that’s what we’re all about. It’s really listening and hearing what our customers say, and taking that feedback.”
Turner then told the crowd that last year Microsoft has a philanthropic history, giving away $498 million in Microsoft products last year worldwide. He held up a large check made out to the Valley of the Sun YMCA for $1,050,000. However, in the “Memo” field of the check it noted, “$1 million in software and $50,000 cash.” He also presented a large check to Goodwill of Central Arizona for $25,000 in cash.
Phoenix mayor Jim Lane appeared, telling the crowd it was, “a great day for Scottsdale,” saying the store would match up “high tech with high fashion.”
After the opening, Turner told a reporter that it was “a magical day for Microsoft,” and that the stores stores would stand out from Apple’s stores by developing deeper customer connections. “We’re not looking for an encounter, we’re looking for a deep-seeded relationship so we can truly connect with their needs and help illuminate the magic of software and the value of the technology,” Turner said.
However, taxi driver James Smith, 31, was not impressed. He told a Reuters reporter, “They’re doing exactly what Apple did five years ago—the concept’s a rip off.” Smith added, “Microsoft might have come up with a better idea than taking Apple’s straight out.”
In a press release, Microsoft listed all the freebies associated with the opening:
- First 1,000 people to visit the store will get 2 tickets (each) to the Ashley Tisdale concert
- First 100 people to visit the store get an Ashley Tisdale autograph after the concert
- First 1,000 people to visit the store will receive a free Grand Opening Day gift bag.
- First 350 people to purchase a PC will get a free copy of Office Home & Student.
- First 1,000 people to purchase a PC will get a free HP D1660 printer.
- Anyone who purchases a PC between 10/22/09 and 12/31/2009 will receive 50% off their purchase of Windows 7 software.
Microsoft has posted a collection of grand opening videos, and Gizmodo has posted a story on the opening. Also watch this narrated video about the store’s interior.
Watch a video of the ribbon-cutting ceremony with Hibbard and Turner.
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{ 17 comments… read them below or add one }
best summary of microsofts opening ive seen today. another failed attempt to emulate apple’s success, and just as tactless as we would expect from m$.
sad attempt at trying to emulate Apple Store success. It looks tacky, M$!
gimcracks. Cool word.
Here’s hoping IF they ever open a store in Schaumburg, IL, that they keep those 5 Zune HDs. I would wait in line with my MacBook Pro, iPhone, every iPod I own, wear my Woodfield Apple Store shirt, and even install Boot Camp on my MBP just so I could go get some “answers” from their lame attempt at a Genius Bar. I would be their biggest pain-in-the-ass that day, and I would get my free Zune HD. But then what would I do with it?
Say…I wonder if Zune’s blend.
-Brian
I have to point out a flaw in a comment above: “another failed attempt to emulate apple’s success”.
Really? I think that Microsoft may be a bit more successful than Apple at most things.
Anyway, I love the Apple stores and all but this looks really great. I’ve seen some more pics on Gizmodo and it looks colourful and bright which, to be fair, isn’t really what i’d call Apples all white interiors.
I think the only reason I like these is that I’m to a diehard apple fanboy and can force myself to like what Microsoft is doing.
By the way its not actually called the “Answer Bar.” [IFO - Thanks. Corrected.]
I’m surprised that you didn’t mention one of the store’s most awesome features – software printing on demand. There are kiosks in the store and visitors can choose to buy games and software which the store does not even have in stock.
The disc, manual and sleeve are printed in the back after paying and the final product looks like it has been produced in a factory. Certainly an innovative way of keeping down storage costs, and awesome for giving a huge amount of choice to customers.
@George,
Microsoft is more successful than Apple at what?
Other than market share for PC’s (mostly corporate), Microsoft has pretty much failed at everything else. No demand for their phones, no demand for their Zune, no demand for their search engine, no demand for Vista, no increase in stock price for 10 years, 3 consecutive losing quarters (the first loses in their history)……. Shall I continue?
All the while AAPL’s stock price has risen 6,000% in the last 12 years, reflecting their renewed dominance in innovation and growth. Their market cap is 4 times larger than Dells, larger than Google’s as well, and nearing MSFT’s. I might add that Apple’s growth is 6 times that of the PC industry. Apple also owns the most profitable stores in the world per-square-footage (Fact).
Now, please tell me again how Microsoft is more successful?
One question no one has asked: how do they plan on making money with this venture into retail? Apple makes more money per square foot than any other retailer because they sell profitable stuff, everything from iPhones to Macs to software to peripherals and accessories. How will MSFT be making money? They can only sell so many copies of Win7, or games. Xboxes? The market is pretty saturated. PCs? Well, if they do, they will have to split the profits with the manufacturer (Dell, HP, etc.) Apple doesn’t have to because they are the manufacturer. They get all the profits.
So how long will MSFT leave this store open if they are not profitable? I can’t see how they will be when PC profits are slim already. Look at CompUSA, Circuit City, for example. How is this venture any different? And there are no economies of scale (multiple stores) to capture profits from razor thin margins. If CompUSA couldn’t do it, how will MSFT be able to? Is this just a money-losing PR stunt or will they base the store’s future on profitability?
Well I think Microsoft has enough money in the bank to allow for a few years before making a profit on these stores (and there will be more than one).
“they sell profitable stuff, everything from iPhones to Macs to software to peripherals and accessories.”
Well to be honest software, peripherals and accessories is exactly what these MS stores are selling. And when you say that the market is pretty much saturated what do you think the iPod’s market is like.
Anyway, at the end of the day, almost everyone uses PCs and thats what this store is selling. So they are hardly not going to sell anything are they???
80 to 100 employees?
How could they not know how many employees they have.
Hi, I’m employee 81. Sorry, we thought that we only had 80 so we don’t have a paycheck for you, but thanks for coming in everyday anyway.
I love the way the COO goes “Do it!” in the beginning of the video after his Windows 7 joke?
How horrible!
The manager in the blue cutting the ribbon is an APPLE market manager from Houston. She got fired because she was terrible. Several other employees there were Specialists or Geniuses from other stores. Microsoft: Enjoy Apple’s sloppy seconds.
Geoarge,
I don’t intend to become involved in your argument; however, I believe Microsoft currently holds a high amount of debt. ;-)
Zomg – I can’t stop laughing… They so want to be like Apple!
Just look at the employees clapping. “Finally, I get to feel like a special technology employee [Like Apple *cough, cough*].”
These are silly arguments. Neither Microsoft nor Apple are the originator of any major new retail concepts, both borrowed heavily from those that came before them (as virtually all retailers do). If you want truly original retail ideas that aren’t derivative, you have to go back to American Fur, Hudson Bay Co, etc…
Microsoft opened it’s first store in 2000, Apple opened it’s first store in 2005. The apple store borrowed heavily on brand building concepts developed by companies such as Nike, and retail merchandising concepts from companies such as The GAP and REI. Does Apple have innovative concepts in their retail store that didn’t come from other retailers? Sure they do.
It’s certainly true that Apple Retail has been hugely successful (the best retail effort ever by some measures), and they’ve proven that brands can operate stores.
Are these latest couple of Microsoft stores inspired by other good retaiers including Apple? I’m sure they are. Do they have new customers experiences that didn’t come from existing stores? It seems like they do.
Did Apple close their store in The Shops, CA before Microsoft’s opening? They did. Will Apple raise their game as a result of Microsoft taking some leases? I hope and suspect that they will!
Cheers.