Microsoft confirms Fifth Avenue in New York City will be site of “flagship store”

Microsoft confirms Fifth Avenue in New York City will be site of “flagship store”
Earlier this summer, speculation started to circulate the Microsoft, whose direct retail presence is a fraction of likes of Apple, might open a “flagship” store just down the street from Apple’s famed glass cube retail location, on Fifth Avenue, in Manhattan, New York City.

The location Microsoft had in mind is currently a Fendi fashion boutique, and Microsoft has now confirmed that it will be turning 677 Fifth Avenue into a banner bearing retail location, geared to market the latest and greatest the technology giant has to offer.  Apparently, it will be more than just a store too.

According to David Porter, vice president of Microsoft retail stores, the upper-end location will be “much more than just a Microsoft Store.” However, he did not provide any additional detail as to what that meant. Microsoft did say that this location has been “five years in the making.”

Microsoft has about 100 actual retail stores in the United States and Canada now, but none in Manhattan, in the heart of a high-visibility location like Fifth Avenue. Fifth Avenue costs real money too, commercial rent prices in this area command anywhere from $2,700 to $3,500-per-square-foot, per-month. That puts the rent at 677 Fifth Avenue in the area of $24 million each and every month for all 8,700 usable square feet of retail space.

It does not seem like selling consumer electronics would generate revenue that would justify the cost, but the locale has broad appeal, affluent and not-as-affluent alike. Fifth Avenue is also high volume due to the city being a large tourist attraction, plus its visibility gives Microsoft a stage to showcase goods and services that will reach more people than another high-brow shopping districts, like Rodeo Drive in Los Angeles, California or Greenwich Avenue in Greenwich, Connecticut.

Conspicuously missing from the report was when the Fifth Avenue location would open.  However, it did say that Microsoft will open another 10 stores in time for the holiday shopping season.

source: The Wall Street Journal

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16 Comments

1. eggimage

Posts: 83; Member since: Jan 19, 2012

delusional

2. MichiGo

Posts: 173; Member since: Sep 09, 2014

But optimistically so.

3. Rager722 unregistered

They opened up a Microsoft store in Times Square and failed. Everyone knows if you fail in time square then you fail anywhere in NY or the US in that case.

4. Liveitup

Posts: 1798; Member since: Jan 07, 2014

If thats they case then why are so many MS stores still open?.

5. eggimage

Posts: 83; Member since: Jan 19, 2012

remaining open/maintaining razor thin profit just to get by doesn't mean they are "successful"... as a matter of fact, M$ has way more cash in hand to allow them to take more hits than most others. Remember how genius Ballmer burnt 900-friggin-million for his failed Surface RT? if it were any other smaller company, it would have been forced out of business by now... it's a severe delusion for them to even think they're another apple to be able to just casually open a flagship store on 5th ave to compete with the actual apple (whether you like it or not, 5th ave apple store alone makes HUGE profits... HUGE.)

10. 87186

Posts: 312; Member since: Aug 01, 2014

" it's a severe delusion for them to even think they're another apple" really? so people are't buying PCs, software, Xboxes or games? haha I tihnk it's funny how people get so personally invested in these businesses. as if them opening a store is offensive. "how dare they! they aren't apple! **rabble** **rabble** **rabble** hop off the bandwagon.

11. Liveitup

Posts: 1798; Member since: Jan 07, 2014

No one knows how much profit MS stores are making if you know then shows us cause i haven't seen anything suggesting this. Otherwise you are simply assuming. Ranting about other decision MS has made is not evidence one way or the other.

15. 87186

Posts: 312; Member since: Aug 01, 2014

Actually, I do. No assumptions here. the original argrument wasn't about profits. No on should care about profits other than MS themselves. Profits were brought into the discussion as a way to compare success. the argument is based off of the mere fact that MS is opening more stores, and iLames continuously feel the need to bash them as if opening a store to sell YOUR products, is an Apple exclusive idea. it's a store. if you don't like MS's products cool, but why do you give a damn if they're opening up a location?

7. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

You do know that the Times Square store was only Temporary and never planned on more than just launching of a device and was planned prior to opening to actually close on a certain date, which it did.

8. 87186

Posts: 312; Member since: Aug 01, 2014

it actually did NOT fail. they ran into issues with the landlord. please know what you are talking about.

6. theguy2345

Posts: 1216; Member since: Jun 24, 2014

I will have to check it out when it opens

9. 87186

Posts: 312; Member since: Aug 01, 2014

just for the record, the previous MS store in Times Square did NOT fail. They ran into issues with the landlord and it forced them to seek alternative locations and close the "Specialty" store. It wasn't even a "full line" store. It was a specialty location, which MS uses to test the market. Obviously the market is fine which is why they are reopening a FULL line store this time around. Not to mention there are other MS stores in NYS. Buffalo has a FULL line store, and Syracuse is getting a store opening in Nov. Try to use a little common sense.

12. Rager722 unregistered

Then why haven't I seen any Microsoft Store in the 5 boroughs? Apple has a bunch in Manhattan and one in Staten Island Mall.

14. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Because apple sells devices, MS only recently started doing so directly that it would even need a store. Why would MS open a store only to sell HP etc in them? Now with the surface lineup, xbox, phones again, etc, they now have a reason to open a store that is solely theirs. Like they have been doing with 100 locations+. Also just as a side note, apple stores first came online in 01, their newyork store, the famous one didnt open till 5yrs later.

16. 87186

Posts: 312; Member since: Aug 01, 2014

why does that matter? you do realize stores, no matter the retailer, will NOT be everywhere, right?

13. volvoV70guy

Posts: 13; Member since: Jun 06, 2014

I wish they'd come to Albany. I guess we're not really the right demographic for high-end shopping.

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