Microsoft to Open Fifth Avenue Store

29/09/2014
Flagship Store to Take Over Fendi Space
Microsoft Corp.'s first Manhattan flagship store is coming to Fifth Avenue.
The software company confirmed that it will be setting up shop at 677 Fifth Ave. as it continues to expand its retail presence and take more control over its consumers' shopping experience. The Fifth Avenue store has been five years in the making, Microsoft executives said. It is expected to open sometime in 2015.
"As our first flagship store, it will serve as the centerpiece of our Microsoft Stores experience," said David Porter, corporate vice president for Microsoft retail stores. "This is a goal we've had since day one—we were only waiting for the right location. And now we have it."
The Fifth Avenue location, currently a Fendi shop, sits in the center of a glitzy shopping corridor and is several blocks south of Apple Inc. 's store. Upper Fifth Avenue, known as a high-end retail destination for both tourists and locals, also boasts some of the city's highest retail rents, with an average asking rent of $2,749 a square foot as of the second quarter, according to Cushman & Wakefield Inc.

Retailers that claim a spot along this coveted stretch are willing to pay the high prices because a Fifth Avenue location is viewed as an opportunity to market their brand and capture a high volume of shoppers.
"It's an international location, and Microsoft is an international brand," said Chase Welles, executive vice president at SCG Retail, a real estate services company.
Over the past few years, Microsoft has made an aggressive push to broaden its retail reach and directly connect with its customers. Its competitor Apple had a head start with this approach, shaping the look and shopping experience in its stores. Apple has about 254 stores in the U.S., according to its third-quarter report.
Since 2009, Microsoft has opened 104 physical store locations in the U.S., Canada and Puerto Rico. Last year, Microsoft and Best Buy Co. BBY -3.51% announced they were creating Microsoft mini-stores inside of 600 Best Buy locations.
The company plans to open 10 more Microsoft stores in the U.S. and Canada in time for the holiday season.
Microsoft's stores typically feature PCs running Windows 8, laptops, smartphones, Surface and Windows tablets, Xbox consoles and accessories bundled with more personalized customer service. These sites offer an "answer desk" for technical questions, as well as personal training.
Microsoft aims to make the Fifth Avenue location "much more than just a Microsoft Store," Mr. Porter said. Though he didn't provide details, he said the flagship store would have an "experiential space" for the company to engage its customers.
This will be the first full-line Microsoft retail store in Manhattan. The company has specialty stores, which are smaller than the full-line version, at The Shops at Columbus Circle and the Staten Island Mall.
In 2012, Microsoft opened a temporary or pop-up store in Times Square to launch products such as its Windows 8 and Surface tablet during the holiday season.
But the Fifth Avenue corridor offers the company a broader mix of consumers and shopping that isn't driven largely by tourism as it is in Times Square, said Joanne Podell, a Cushman & Wakefield vice chairman, who wasn't involved in the deal.
"Fifth Avenue has fast retail and luxury," Ms. Podell said. "This street appeals to everyone from the wealthy to the not so wealthy. It's an ecumenical street."
The new location also offers the company the ability to bring its products to a "huge group of local customers and visitors alike," Mr. Porter said.
Microsoft has long had its eye on Fifth Avenue as a spot for its Manhattan flagship store. Andrew Kahn, who was on the Cushman & Wakefield team representing the landlord 677 Fifth Avenue Corp., described the location as "a perfect pairing."

By:http://online.wsj.com/articles/microsoft-to-open-fifth-avenue-store-1411959661?sf31773772=1

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