• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
TechMicrosoft

What Microsoft can learn from Apple at retail

By
Don Reisinger
Don Reisinger
Down Arrow Button Icon
By
Don Reisinger
Don Reisinger
Down Arrow Button Icon
October 20, 2015, 7:32 AM ET
Apple CEO Tim Cook looks over a selection of Apple Watches in Palo Alto
Apple CEO Tim Cook looks over a selection of Apple Watches in Palo Alto, California April 10, 2015. Customers flocked to Apple Inc's stores around the world on Friday to get their first close-up look at the company's smartwatch, while online orders were backlogged until June. The Apple Watch, Cook's first new major product and the company's first foray into the personal luxury goods market, was available for preorder online and to try out in stores by appointment, but not to take home. REUTERS/Robert Galbraith TPX IMAGES OF THE DAY - RTR4WUS5Photograph by Robert Galbraith — Reuters

When Microsoft’s flagship store in New York City opens later this month, it may need to take some cues from Apple to be successful.

Microsoft (MSFT) will open its first flagship store on Fifth Avenue in New York on Monday, Oct. 26. The store, which has been in development for several years, spans five floors and is over 22,000 square feet. Microsoft says that it will be “a premier venue to learn about, experience and shop for the products and services from Microsoft and our partners. “The stores will feature a range of Microsoft and PC vendor products, as well as an Answer Desk for in-store tech support. There will also be a Community Theater to learn about new products and “immersive video walls throughout” the store.

Microsoft is no stranger to retail. In fact, the company now has 66 retail stores across several countries. The New York location, however, is the company’s first flagship store designed to showcase everything the Microsoft world has to offer. It may also be one of the most important ways for Microsoft to connect with customers.

“With PC sales and big box retailers who sell PCs both shrinking, it is imperative that there be a means for Microsoft to connect with consumers, particularly as they move into new categories, such as 2-in-1 devices, and continue to innovate in existing ones,” says Piper Jaffray analyst Gene Munster. “I think company-owned retail stores are a way to showcase new products and add a physical presence that improves the ability of consumers to connect with the company.”

Arguably no company has been better at connecting with customers through retail than Apple (AAPL). As the tech giant has expanded its retail presence around the world to more than 460 stores, it has become the gold standard for how retail should look and act. Apple’s stores are unique in their design, open to consumers who want to try out products without being pushed to buy, and staffed with knowledgeable employees.

 

That combination has helped Apple become the world’s most successful retailer. In March, research firm eMarketer revealed that at the end of 2014, Apple was generating $4,798.82 per square foot of space in its stores. Its closest competitor, luxury jeweler Tiffany & Co. (TIF), could only muster $3,132.20 per square foot.

“[Apple] stores were designed to reinforce the idea that Apple products are the world’s best-designed, best-styled consumer goods,” says eMarketer retail analyst Yoram Wurmser. “A huge amount of detail went into designing the stores to best showcase Apple products and to reflect the same minimalist aesthetic. The stores also reinforce the notion that Apple products are attainable luxury.”

The secret sauce that goes into Apple products is something Microsoft must learn from, experts say. Wurmser, for instance, says Microsoft must learn from Apple that its “retail strategy needs to align with the product strategy.” IDC program vice president Tom Mainelli says success in Microsoft’s flagship stores will mean borrowing from Apple the concept of making stores “inviting and uncluttered.” He added that delivering “a great experience” is more important than focusing on driving sales. Munster believes Microsoft could benefit from taking Apple’s ideas of “in-store tech support, a host for check-in, online reservations, and workshops” to be successful.

“Highlight your most unique products in the store,” Munster suggests, referring to Apple’s own efforts in that regard. “Make it clear what’s top of mind.”

Learning from Apple and not relying on traditional retail methods to sell technology is critical, experts say. Apple has found a way to make technology retail compelling and its sales have subsequently skyrocketed. Traditional consumer electronics stores, however, are in a much different spot.

“Consumer electronics retail is broken: selling products at traditional venues like Best Buy (BBY) leads to undifferentiated displays, sales associates with limited product knowledge, and a poor overall buying experience,” Forrester analyst J.P. Gownder says.

Microsoft may realize that, Gownder says, and is charting its own course to take control over how people view its products and its brand. He argues that Microsoft’s current stores, which don’t offer the same “flagship” experience, have taught the company much of what it needs to know about retail and customers. The collection of that data on what customers want and how they view the retail experience will ultimately help the company’s flagship stores, Gownder says.

“Microsoft has expanded its Microsoft Stores slowly and intentionally over the past few years,” he says. “The New York City flagship is a natural extension of that strategy, and the years of retail experience gained will make it much more successful than it would have been if it came out of the blue.”

Gownder isn’t alone in believing that Microsoft’s flagship store effort will prove successful. While the company is investing untold amounts of cash in a Fifth Avenue store (as well as another flagship in Australia that’s slated to open next month), many experts say the chances of Microsoft succeeding in delivering a high-end flagship experience to help its company’s prospects are high.

“Ultimately, I think it’s about creating more brand affinity for Microsoft products,” Mainelli says. “I think the stores have been, and will continue to be, successful at that.”

Katherine Egbert, another analyst at Piper Jaffray, put a finer point on predictions for Microsoft’s flagship store success. When asked if the company would be successful, her answer was concise and to the point: “Yes.”

Sign up for Data Sheet, Fortune’s daily newsletter about the business of technology.

[fortune-brightcove videoid=4565052178001]

 

About the Author
By Don Reisinger
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

SpaceX’s next-gen rocket is the key to its sky-high valuation, early investor says: ‘Starship also enables all kinds of frontier markets’
Startups & VentureElon Musk
SpaceX’s next-gen rocket is the key to its sky-high valuation, early investor says: ‘Starship also enables all kinds of frontier markets’
By Marco Quiroz-GutierrezMay 24, 2026
2 hours ago
Dara Khosrowshahi speaks on stage and holds his palms in front of him, pressed together.
LifestyleUber Technologies
Uber CEO says rideshare ‘freed up’ his son from having to get a driver’s license—and he’s one of many Gen Zers who aren’t willing to drive
By Sasha RogelbergMay 24, 2026
3 hours ago
bofa
AIProductivity
BofA says you’ll be 10x more productive with AI. Ignore the 0.1% result so far
By Nick LichtenbergMay 24, 2026
3 hours ago
Inside the ‘stealth wealth’ playbook: How Silicon Valley’s elite buy multimillion-dollar mansions without leaving a paper trail
Real EstateLuxury
Inside the ‘stealth wealth’ playbook: How Silicon Valley’s elite buy multimillion-dollar mansions without leaving a paper trail
By Sydney LakeMay 24, 2026
4 hours ago
David Bennahum
CommentaryMedia
I was one of the internet’s first influencers. AI just killed the whole category — and created something better
By David S. BennahumMay 24, 2026
5 hours ago
Someone leafs through titles stacked in a library
AIResearch
AI hallucinations are infiltrating expert work—and entering the permanent body of knowledge
By Tristan BoveMay 24, 2026
6 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
3 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
2 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
2 days ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
2 days ago
Elon Musk's SpaceX IPO filing just told us what business he's betting on for the future—and it's not rockets
Investing
Elon Musk's SpaceX IPO filing just told us what business he's betting on for the future—and it's not rockets
By Shawn TullyMay 23, 2026
1 day ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
7 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.