Meta plans retail expansion

[WORLD] Meta is quietly planning to expand its physical retail presence beyond its single Meta Store in Burlingame, California. According to internal communications, the company aims to hire retail staff and open additional locations, though details on how many or when remain unclear. Meta has experimented in the past with pop-up shops, like the Meta Lab in Los Angeles, to showcase products such as its Ray-Ban Meta smart glasses and Meta Quest VR headsets.

The push into retail is seen as a way to boost sales of Meta’s hardware products, which sold over one million units last year. Despite this milestone, CEO Mark Zuckerberg has cautioned that sales need to reach a much higher scale to make a meaningful impact on the company’s overall business. Executives have hinted that 2025 will be a decisive year for determining whether Meta’s wearable tech, particularly its AI glasses, can evolve into a dominant computing platform.

Meta’s move comes as competition in the AI hardware space intensifies. OpenAI recently acquired Jony Ive’s startup, IO, to develop new AI devices, and other Big Tech players like Amazon and Apple have long histories of leveraging physical stores to strengthen customer connections. However, Microsoft offers a cautionary tale, having closed most of its retail locations during the pandemic, keeping only a few specialized centers open.

Implications

For businesses, Meta’s retail ambitions signal a strategic shift toward a hybrid model that blends online dominance with in-person customer engagement. This could open up new partnership opportunities for app developers, accessory makers, and service providers looking to tap into Meta’s growing hardware ecosystem. It also positions Meta more directly against rivals like Apple, which has long used its stores as hubs for product discovery and brand loyalty.

For consumers, physical stores could make it easier to experience and test Meta’s emerging technologies firsthand. This is particularly important for products like VR headsets and AI-powered wearables, where tactile experience and demonstration can drive purchase decisions. Shoppers may also benefit from more localized customer support and the chance to interact with knowledgeable staff, reducing friction in adopting new, often complex, tech products.

From a public policy perspective, the expansion raises questions about labor practices, data privacy, and the growing influence of Big Tech in everyday life. As Meta hires more retail workers, regulators may pay closer attention to employment standards, particularly given the broader scrutiny tech companies face around workplace conditions and unionization efforts. Additionally, the blending of physical and digital retail experiences could amplify concerns about how consumer data is collected and used.

What We Think

Meta’s push into retail reflects both ambition and necessity. While its online platforms remain powerful, hardware sales present a new frontier—and physical stores could be the missing piece to scale that business. But the road ahead is uncertain. As Zuckerberg himself acknowledges, success in wearables is far from guaranteed, and the company risks burning cash on a venture that might not deliver immediate returns.

Still, the move aligns with a broader industry trend: Big Tech companies increasingly recognize that owning the end-to-end consumer experience, both online and offline, is key to long-term growth. Meta’s challenge will be to avoid the pitfalls that forced others, like Microsoft, to retreat from retail. Execution, not just vision, will determine whether its stores become bustling hubs or expensive showrooms.

We see this as a calculated, if high-stakes, experiment. If Meta can craft a compelling in-store experience and build a strong hardware lineup, it could unlock new revenue streams and deepen consumer loyalty. But if it stumbles, it will only reinforce perceptions that Meta is still searching for its next big win beyond social media.