Microsoft said on Friday it would close its retail stores and take a related pretax asset impairment charge of US$450-million in the current quarter.

A Microsoft spokeswoman said all current retail employees would be given an opportunity to remain with the company in different roles.

Ultimately everything was moving more and more towards the digital channels over the last few years

“Speaking over 120 languages, their diversity reflects the many communities we serve,” Microsoft corporate vice president David Porter said of the company’s retail employees in a statement.

The company also said it will rethink other spaces that serve all customers, including operating Microsoft Experience Centres in London, New York, Sydney and Redmond campus locations.

The physical stores generated negligible retail revenue for Microsoft and ultimately everything was moving more and more towards the digital channels over the last few years,” Wedbush analyst Dan Ives said in a note.