The company said it would be creating a new operation to develop its retail strategy and oversee the development of new Microsoft retail outlets.
Microsoft said 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'.
The business has lost significant ground to trendier rival Apple, which has opened a series of high profile branded stores. Recent advertising campaign ‘I'm a PC' have met with mixed reviews, many seeing it as a desperate response to Apple's dominance.
Analysts also said that Microsoft could face ‘ill-will' from retailers that stock its products.
To run the new operation, the company has appointed David Porter as corporate vice president of Retail Stores. He was former head of worldwide product distribution for Dreamworks Animation and will now report to Microsoft chief operating officer Kevin Turner.
Porter previously had 25 years with US retail chain Wal Mart.
The computer giant plans to use the stores to promote new product releases including Windows 7 and new releases of Windows Live.
The company has not said when or where the stores will launch, which will be overseen by Porter. Microsoft also wants to improve its relationship with existing retail partners.
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