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Horrible Idea of the Day: Microsoft to Build Retail Stores Right Next to Apple's

BY Cliff KuangWed Jul 15, 2009 at 5:12 PM
Microsoft's COO says that the stores will open this fall. Just one question: How epic will the failure be?

zune tattoo

Last winter, Microsoft announced that they'll be opening retail stores; today, they confirmed that the first ones will be opening this fall. Some of them--get this--will be located right next to Apple stores.

To which I say: Wow. Superb, guys.

No way does this end well. Does the company which brought you the brown Zune (and it's number one fan, pictured above) really think they've really got this architecture/retail/service thing whipped? It would be one thing if they wanted to experiment quietly, and start small--just like Apple did--so that they could work out the bugs. Instead, they're just offering themselves up for public humiliation.

The designs of the store aren't public yet--but their recent "concept" store on the Redmond campus manages to look exactly like the love child of a Circuit City and a Walgreens.

You can only wonder and laugh at the side by side pictures that this'll engender. The pictures might include lines out the door for the iPhone 4G or MacBook Molecule or a talk from Michel Gondry...while the crickets chirp at the Windows store, the clerks check their email, and a granny inside complains that she doesn't know what to make of a "fatal exception on sub-route 5601."

This is exactly the sort of real-world, explicit comparison that you'd want to opt of, if you're in marketing up in Redmond. Apple's next switcher ad? We're betting it'll just be a straight-up, real-time documentary.

Which brings us to a larger point: Why is it that everyone competing with Apple chooses to compete on Apple's terms? If you've got to beat Lance Armstrong at something and you get to choose the game, would you really roll up to his front door, pedaling your Huffy? No. You'd pick a game that he's not good at. Duh.

[Via Gizmodo]

Topics:

Design, Retailing, retail design, microsoft, apple, windows, Switcher ads, Innovation, Technology, Apple Inc., Redmond, Microsoft Corporation, Gizmodo.com, Apple iPhone


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Recent Comments | 31 Total

July 15, 2009 at 8:47pm by Steve Martin

Microsoft opened retail stores years ago - I clearly remember the SFO outlet in Yerba Buena Gardens opened at least 9 years ago, in fact. Your piece makes it sound as though you're completely unaware of that.

July 15, 2009 at 8:58pm by Steve Kehlet

> like the love child of a Circuit City and a Walgreens

Quite the visual, nice touch.

July 15, 2009 at 10:03pm by Ethan Plaut

lol hmmm I smell a apple fanboy. Honesty what a terrible write up.

July 16, 2009 at 1:01am by Freddy Nager

Because of Micosoft’s base of geeks and gamers, I’m guessing that a Microsoft store will have a much more imbalanced male-female ratio than the Apple stores. Indeed, should a real-live female wander into a Microsoft store, all the Y-chomosomes inside will glance up from their Xbox testing and think they’re seeing a hologram. Let’s hope they don’t try to frag her with their joysticks.

July 16, 2009 at 1:03am by David Weiss

I'm a very happy Mac user - a converted Windows PC owner and user for 15 years, to be honest.

I went and bought the wife a MacBook Pro over the weekend. Do you know those little handheld devices the Apple Store employees use to ring up your sale and swipe your credit card???

They run on Windows.

July 16, 2009 at 7:04am by John Weller

Dont get me wrong here...I love my imac and my ipod, but this is kind of a mindless write up Kuang. The single fact that Microsoft is opening a retail store is the only worthwhile news here. Your opinion of the store's impending doom without any hint of the details about the store is middle schoolish. If microsoft makes it a business themed store catering to the real business world, I believe more of your readers and the players of companys you write about will be in the Microsoft store more frequently than the toy store next door.

July 16, 2009 at 8:38am by Harry Pujols

Thanks, Steve Martin, for reminding us of the Microsoft Store (which actually PRECEDED the Apple Stores) at the Metreon complex in San Francisco. The store was a failure, but as the article recommends, a quiet one. At the same complex was the country's only Playstation store. Wonder if Microsoft was thinking about changing its store name to the X-Box Store.

July 16, 2009 at 8:53am by Bill McCann

Opening next to Apple? That's the "Wendy's" strategy (All Wendy's are located near a McDonald's or Burger King). The idea is the competitor's store already demonstrates the proper demographic is in the area. The success or failure of the Microsoft stores will depend on how Microsoft executes their plan; and not so much on the comparisons to Apple.

July 16, 2009 at 11:46am by Tom D

Oh Apple Fan Boy...we see you. Bring MSFT retail to Boston and we will check it out *as will many Apple-bots - quiet an insecure bunch ya know!

July 16, 2009 at 11:56am by Claudia Sandoval

I would wait and see what really can happen on this scenario. Come on.... give Microsoft a chance to open new paths for change.

July 16, 2009 at 11:56am by Travis Price

Could be as epic as Wendy's moving next to all the McDonals's. Seems Wendy made a bundle not a bungle!

July 16, 2009 at 12:12pm by Ken Countess

too funny.

July 16, 2009 at 12:23pm by Jeff Voorhees

Wow. Sounds like there is alot of support for the Microsoft stores. Kuang, you might be on island here.
I know I'll be one of the first ones to shop there!
There really is a place for both Apple and Microsoft to coexist in this world of abundance. Why do we feel a need to pit them against each other. Can't we all just get along?

July 16, 2009 at 12:58pm by Isaac Aggrey

I think the point Kuang is getting at is that why does MSFT want stores now?

They've been the breadwinners of the PC industry for however long and now that their dominance is starting to fade (albeit slowly) they want to make stores.

Is that because Apple's stores are successful?

Who knows. Only MSFT can answer that question but they better make sure they are prepared to face these kinds of comparisons.

Note: I appreciate all OSes (currently using Ubuntu 9.04, dual-booting Windows 7, and would gladly use a Mac too) so I have no bias....except maybe to open-source projects. ;)

July 16, 2009 at 1:36pm by Scott Hemmons

This is a badass move. Microsoft is a software company, though I imagine them selling mostly hardware in these stores. Apple people feel like they're part of greater movement or something. Having Microsoft next door will kill those feelings quickly when you see prices in Microsoft's window.

I'm a PC.

July 16, 2009 at 2:15pm by Steve Nagel

Not a bad idea. Like Pizza Huts next to McDonalds. Brings traffic to both shops.

July 16, 2009 at 2:25pm by Adam Reed-Erickson

I'm glad someone mentioned the Wendy's strategy (though I'd heard it was BK following McD, but whichever). Also, when Apple announced retail stores, didn't everyone insist they'd fail miserably too? I'll look forward to the comeuppance posting from Mr Kuang in the surely possible event that the MS Stores do NOT fail catastrophically. Talk about setting the bar artificially low....

July 16, 2009 at 2:40pm by jp solyom

Basic marketing 101. You must compete head on in the same markets as your top competitors. The problem with Microsoft is not one of lack of marketing resources but rather a lame duck product. Their current ad campaign parades a bunch of airheads that buy stuff based on peer pressure or preconceived ideas based on Microsoft's propaganda. The question will be whether or not the Microsoft / System 7 value proposition will compete favorably with the Apple / OSX 10.6 Snow Leopard value proposition. Microsoft is behind the curve when it comes to innovation - and - it loses out on it's cost argument when you add up all the additional stuff you need to buy ($ cost) and install/make work (time cost) to achieve parity in functionality and safety.

Microsoft's focus is still on harvesting it's installed base and not on delivering a superlative computing experience... So bringing the installed base so close to the Nirvana of computing and entertainment technology is a very dangerous proposition - for Microsoft... Just gravy for Apple...

July 16, 2009 at 2:52pm by Brian Wark

RIM just hired U2.
It looks so desperate....

July 16, 2009 at 3:28pm by Tyler Adams

@Bill, Adam, Steve I appreciate the "Wendy's" argument here but one of the reasons that argument makes sense is because the customer service/products/general consumer experience at both Wendy's and McD's are the same. Most people who go into Apple stores are probably not geeks. They go for the experience. The go for the unparalleled customer service. The go because you are allowed to write an entire novel using their computers if you want. Most non-tech folks (the majority of ppl) probably can't even tell you the differences between Macs and PCs. The question is, can Microsoft duplicate the consumer experience that Apple has perfected? Who knows. But to Cliff's point final point, why try? Reinvent the game. Microsoft should create a new game on its own terms.

July 16, 2009 at 7:43pm by Merritt Tilley III

What a great idea - Microsoft's House of Tricks. First Ballmer, now a COO that thinks he's a tattoo artist. What's next? A special on Blue Screens of Death at their shops? Sounds like real competition against Apple...

July 16, 2009 at 7:44pm by Merritt Tilley III

What a great idea - Microsoft's House of Tricks. First Ballmer, now a COO that thinks he's a tattoo artist. What's next? A special on Blue Screens of Death at their shops? Sounds like real competition against Apple...

July 17, 2009 at 10:43am by Jeff McSweeney

A company either leads or follows. I was sad to learn that GM's Cadillac strategy is to establish dealerships in the same town/area as Lexus. Be bold, lead, show everyone else how it is done - or be Microsoft.

July 17, 2009 at 10:46am by Demetri Pavlides

At the end of the day, whether MSFT chooses to open stores next to Apple is their right, whether that makes sense is of course a different story :) Comparisons to to McD or BK or Wendys are pointless, the fact is that people will vote with their feet!
War has been wagered.

July 17, 2009 at 11:33am by Monica Bower

But where are the Google stores going to be?

July 17, 2009 at 4:29pm by Robin Mestre

This could be a smart move to allow consumers to see that they can get more bang for their buck and more hardware and software options by purchasing a PC. By placing these stores in close proximity to an Apple store, Microsoft could siphon off sales from the Apple stores. HOWEVER, in my opinion, if the shopping experience is poorly executed this could totally blow up in Microsoft's face - it could really widen the coolness factor between the Apple and Microsoft brands. I've also seen the concept store in Redmond and OMG it was totally lame - your love child assessment would be doing it justice - lots of geek features, no class. Considering that Microsoft's COO came from Wal-Mart, and assuming that this is his brainchild, it does not bode well - unless of course that is the play you want to make - isn't Wal-Mart one of the biggest companies in the world? Microsoft has product releases come out over the next year or two that are much more consumer friendly, e.g. Zune HD, Windows 7, Windows Mobile 7, Project Natal, so I think it's going to be an interesting space to watch.

July 17, 2009 at 4:58pm by fkidfkjd chdskjfhd

"Why is it that everyone competing with Apple chooses to compete on Apple's terms?"

Except Windows has already won.

July 17, 2009 at 4:58pm by fkidfkjd chdskjfhd

"Why is it that everyone competing with Apple chooses to compete on Apple's terms?"

Except Microsoft has already won.

July 18, 2009 at 3:53am by Amir Khella

Watching the promo video, there are two things that I can see Apple already winning in: Human-centered experience and space design.

When I enter an Apple store, I feel welcomed first as a guest, then as a customer. What greet me are not shelve and products, but people. In fact, I don't remember seeing many Apple stores with products facing the entrance. It's always open space that typically shows how crowded the store is. Like an amusement park, what attracts us is not the ride, but the crowd around it.

I believe that for Microsoft to win some retail customers from Apple, they need to beat their experience. And they need to provide less options than what shows up on these shelves in the video. May be if the Microsoft store is organized by themes (student, gamers, developer,...), it can help reduce that paradox of choice.

July 18, 2009 at 6:28pm by Baxter Baxter

Why does Microsoft even care? Microsoft makes double in one quarter what Mac makes in a year. If they are worried about no looking "cool" like mac who cares. Cash is King Baby!