Microsoft follows Apple's lead in retail push; hires Wal-Mart veteran for new venture

Microsoft Corp's decision to launch a retail push for the first time suggests the company is hoping the success of smaller rival, Apple Inc., in reaching consumers.

On Thursday, Microsoft confirmed long-rumoured plans to launch retail stores, a move underscoring the challenges the Redmond, Washington-based software giant faces in the way it reaches consumers. For this purpose, Microsoft has hired a 25-year veteran of Wal-Mart Stores Inc. to oversee the development and opening of the new venture.

Microsoft said in a statement that David Porter will serve as corporate vice president of retail stores and will be responsible for "defining the time frame, locations and specifics for planned Microsoft-branded retail stores." 

Porter has served as head of worldwide product distribution at DreamWorks Animation SKG since 2007, when he left Wal-Mart after a 25-year stint with the world's No.1 retailer.

"There are tremendous opportunities ahead for Microsoft to create a world-class shopping experience for our customers," Porter said. "I am excited about helping consumers make more informed decisions about their PC and software purchases, and we'll share learnings from our stores with our existing retail and OEM partners that are critical to our success."

Defining the time frame, locations and specifics for planned Microsoft-branded retail stores will be Porter's first order of business. The purpose of opening these stores is to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy.

Porter, whose new role and focus will complement the work Microsoft is already doing with its retail partners, will work in close partnership with leaders of existing retail programs in Microsoft's Entertainment & Devices Division.

"We're working hard to transform the PC and Microsoft buying experience at retail by improving the articulation and demonstration of the Microsoft innovation and value proposition so that it's clear, simple and straightforward for consumers everywhere," Microsoft Chief Operating Officer Kevin Turner said in a press statement.

Microsoft said it intends to use its new retail outlets to "improve the articulation and demonstration of the Microsoft innovation and value proposition." Porter will work together with leaders of "existing retail programs" in the company's entertainment and devices division, which includes products such as the Xbox video game console and the Zune media player.

While Microsoft owns the world's largest and most profitable software franchises in Windows and Office and has a successful consumer electronics product in the Xbox console, it has stumbled in recent years with consumer-facing products like the Zune, which have failed to make significant traction against Apple's iPod.

Microsoft has recently been trying to reach out more directly to consumers through advertising. In 2008 it launched a marketing campaign at a reported cost of $300 million, kicked off by a whimsical TV spot featuring its founder, Bill Gates, and comedian Jerry Seinfeld.

The spot, which showed the two men talking about buying shoes, tried to stress Microsoft's relevance in a world where traditional computer operating systems were becoming outdated. It was also seen as a riposte to Apple's long-running campaign which pitches its own computers as simpler and more consumer-friendly to Microsoft's Windows.