Microsoft in talks to open Manhattan retail store near flagship Apple Store Fifth Avenue

“Microsoft is in negotiations to open its first ever New York City retail store on Fifth Ave., sources told the Daily News,” Katherine Clarke reports for The New York Daily News. “The deal, at 677 Fifth Ave. near 53rd St., would give Microsoft a splashy presence on the top retail corridor in the country and put it just a stone’s throw from its biggest rival Apple’s iconic glass cube store.”

“The 8,700-square-foot, two-story space eyed by Microsoft was last occupied by luxury fashion brand Fendi, which departed the building last year for a spot on Madison Ave.,” Clarke reports. “Rents for ground floor stores on prime Fifth Ave., are the priciest in the nation and have been topping $3,500 per square foot in recent deals.”

“Microsoft has a track record of setting up shop near Apple stores, where it can go head to head with its competitor at close proximity. It has reportedly used that tactic numerous times at its Palo Alto outposts,” Clarke reports. “The company last flirted with New York retail in 2012, when it opened a temporary pop-up store in Times Square for the holidays. It’s been on the hunt for a more permanent home since then.”

Read more in the full article here.

MacDailyNews Take: Microsoft's fake Apple Retail StoreBelieve it or not, Microsoft now has amassed some 100 retail stores in the U.S., Canada, and Puerto Rico. Every time we’re near one of Microsoft’s cavernously empty tombs, we look into it and find nothing but bored employees, crappy Windows PCs and assorted other Apple wannabe dreck, and a handful of abandoned kids playing with Xboxes (“Go in there and play games while we shop, Johnny.”)

These Apple Store knockoffs must be a “marketing expense” write-off at Microsoft. “Look, everyone, we’re still relevant! No, really, we are – look we have our own stores, too!!!” Microsoft desperately screams.

We cannot imagine any scenario in which these stores aren’t losing money hand over fist.

For how long can Nadella continue this charade?

Related articles:
Microsoft retail store traffic pales in comparison to Apple’s – November 26, 2010
Analyst: Apple Retail Stores mauling Microsoft; Since 2004 over 18m Windows users switched to Mac – April 28, 2010
Microsoft looks to double retail store ‘network’ to four; Denver and San Diego up next – April 01, 2010
Apple’s retail store network, 285 strong and counting, driving Mac sales growth; AAPL at $435? – March 22, 2010
Apple exec offers peek into retail roll-out; including ‘jaw dropping’ London and Shanghai stores – February 26, 2010
NPD: 48% of the money spent at U.S. retail on desktop PCs was spent on Apple Macs – November 25, 2009
Microsoft: You’re not cool; you’re the opposite of cool; stop making your employees dance (w/ vid) – November 17, 2009
Microsoft Retail Stores have to resort to free concert tickets to generate opening day crowds – October 30, 2009
Notes from Microsoft’s first retail store: ‘Cheap, disorganized, and poorly-located’ (with photo) – October 23, 2009
Microsoft’s Bizarro Universe: 8 years late; in garish color; featuring inferior products (w/ video) – October 22, 2009
Microsoft to mimic Apple (what else is new?) with ‘Guru Bars’ in retail stores – July 25, 2009

65 Comments

  1. That will be difficult for the shop staff to be looking over at how busy the Apple Store is. I guess they at least have new hardware to sell, I.e., Nokia handsets.

  2. The “charade” can continue as long as there is more money to bleed. It is both sad and funny. Microsoft charades have gone on for decades. Just look at the Microsoft Nokia phones and the Surface. And what are the real numbers behind Windows 8? Are people buying it in their PCs and clearing it out to put another OS in them or an older Windows OS?

    1. BWAHAHAHAHA! What’s most amusing is that no matter how much we shout about Microsoft’s Folly, that being their loser Microsoft Stores, it doesn’t penetrate. It’s their own personal self-destructive imperative. Ha. Haha. HAHAHA! HEEHAHAHAHAHAHAHA!!!!!

      Who made this coffee?!

    2. About Surface. I hate that all NFL teams will be using those crappy devices. There will likely be more placement shots of them than yards completed. Bye bye iPads, that were chosen by the coaches and players. Hello MS junk. Ugh.

      1. It’s going to be very funny when a coach snaps a Surface into hundreds of eye-poking pieces over their knee. Brink back Coach Ditka – he will do the job right.

      2. I wonder if the players had any say in it at all. They get endorsements and do ads for Apple’s competition but are invariably caught using Apple gear. I wonder if the coaches even got a vote on it. MS probably pitched the Surface at red-tag special sale pricing to the NFL and owners, and they said hell yeah.

    1. Well, Windows 7 was considered a success. The XBox was a success for a middle period in there somewhere. Office still reaps millions of victims. Windows Server still has its claws in thousands of suffering businesses.

      A better question might be:
      ‘When was the last time Microsoft introduced anything that was truly INNOVATIVE?’
      Beats the hell out of me!

    1. And if “emptiness” continues, the new CEO will exit.

      Being “late to the game” is not a winner in this age. MS made a hit by getting MSDOS into the game early.

      Win8 & Surface are too late to be a force as proven by the Apple/IBM deal. This had to put fear into Satya’s value of his options.

      1. Bill Gates bluffed IBM to get into the PC game to best Apple Mac by showing some basic DOS scripts to them to seal the deal. Went back to Seattle, bought Seattle DOS company + DOS code expert became Microsoft employee for 3500 dollars. Changed name to MS-DOS & delivered it to IBM. Gates was expert poker player who bluffed & bought his way into PC industry after dropping out of college with help from very rich parents. TROOOOOTH!

  3. Almost 400 million dollars a year in rent with minimum locked-in rental period of ten years. Considering this will entirely be a non-profit, loss-making exercise, this is a fine new money pit to be blowing beleaguered MSFT investors cash on.

    1. Well with 400 Million over 10 years they could keep some of that staff they are letting go. If they do this they are just completely nuts. How many more empty stores do they need to see that this is not working. This new guy seems to be as bad as the last CEO “The emBalmer”.

        1. While Russ I’m sure is a nice guy, I checked it’s nowhere near that price. Yes it’s not cheap but there is no way a company can sell enough stuff out of that store to turn a profit. 30 Million a year tops for ten years gets us close but still no cigar. Even at 30 Million a yeah turning a profit would be next to impossible.

          1. If the price quoted in the article is correct ($3,500 per month per square foot), then it means that for an 8700-sqft space, the monthly rent is $30.45 million (making it close to $400 million number that Russ had mentioned.

            Something is surely wrong with the numbers in the article. Not even Apple can make half a billion dollars in profit in a single store, just to cover the rent, even it if it a 5th avenue store.

    2. Doesn’t it tug at your brain when you write that a store space would cost $400 million a year and that you ought to do some research?

      Cost per square foot for rental space is per year not per month as you are relating your rental experience/knowledge (e.g., homes) to something (commercial real estate) about which you know nothing (apparently).

  4. I went in to buy a copy of windows 7 I needed for a VMware project and they did not want to sell it to me. Clearly the box was there on display but they tried to move me to windows 8.1. Which won’t work for this project. So I left went to staples and in 3 minutes had what I needed. Such a joke of a place. Such a poorly run company.

  5. I am not an accountant, but how do you possibly justify this with minimal margins and few customers?

    Nothing more than a product showroom. Go and try out the goods, then order them on-line. This is what killed the ma & pa stores.

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