Dell Computer has cancelled plans to open a second retail store, at the West Palisades shopping mall in Nyack (NY), but didn’t explain to a reporter why their plans had changed. The company’s only store now is at the NorthPark Center (Dallas, Tex.) mall and is within eyeshot of an Apple retail store. The first store, which opened in August 2006, continues to operate as an order-only, no-inventory retailer. Dell first confirmed the store cancellation to the ChannelWeb Web site.
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I was right by that store at NorthPark. My kids and I spent a lot of time (and I spent some money) at the Apple Store, which was packed to the gills. The Dell store was empty except for a salesperson and one guy looking at a really big display.
Gateway Country tried the exact same business model, and failed. It sounds like Dell’s just doing much of the same. Stores that sell computers online don’t make any real money, because no a day people are all about instant gratification, and they can get that at Circuit City, Best Buy, and even Apple.
-Brian
How does Dell afford the lease? Not selling things in store? Apple makes like 50x the lease.
Although I don’t like having to wait for the product to arrive, the direct model (not having inevtory) is much more profitable. From what I understand the Dell store still does pretty well.
Nyack is NY, not NJ. [IFO-Thanks, correction made.]
Dell and Gateway just don’t get it. The whole point of going to a RETAIL store is that I can buy the damn product right then and there.