Dell Inc. CEO Michael Dell told an interviewer from crn.com that the company is going to be “quite aggressive” on expanding its retail operation, and expects to open inside “a lot more” retail locations in the U.S. and other countries. Dell talked at length about direct and indirect channels, partners and distributors. When asked about the company’s bricks and mortar plans, Dell replied, “I think you’ll be quite interested to see what we do, and it’s going to be quite aggressive. I think you’ll see Dell showing up in a lot more retail locations–not only here in the U.S. but also in major countries around the world over the next several quarters. So stay tuned.” His comments didn’t specifically indicate more retail stores, but rather a presence at more retail locations. Dell opened a single retail store in the Northpark mall (Tex.) in August 2006. Dell Inc. had announced a second store in New York, but in April 2007 said those plans had been cancelled. [Also read Larry Dignan's perspective on the zdnet.com Web site.]
Four days after Mr. Dell’s retail statements, the company announced that it would begin selling computers at Wal-Mart starting June 10th. Spokesperson Dwayne Cox said the deal is part of the company’s evolving strategy to add sales channels. “Our customers are asking us for additional ways to buy our stuff, to buy our products,” Cox told ChannelWeb.com. “We plan to do that, to deliver against their request on a global level.” Apparently just two models will be offered at Wal-Mart, a Dimension e521 without monitor, or with a 19-inch LCD display. Wal-Mart has 3,000 locations in the U.S., Canada and Puerto Rico.
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{ 3 comments… read them below or add one }
If the “retail plans” Dell has is anything like their kiosk at the Walden Galleria in Buffalo, Dell should save themselves time and throw bundles of 20’s and 50’s out the window right now.
First, it is a large 2 level mall (the largest Mall in the region) with the usual variety of stores, food court, etc.
Where does Dell decide to open up their little kiosk on the cheesy standard wooden kiosk used by everyone (including the guy selling Nascar belt buckles), 25 steps from an Apple Store.
I always wondered if they are jumping onto the Apple wi-fi?
The part I always laugh at is they give people this big sales pitch and then the person can’t walk away with a computer and have to order it instead.
Dell won’t make a go of it any more than Gateway did. If people are going to a store they want to walk out with it. Otherwise, they can order from home.
Dell simply doesn’t have the innovation and draw that Apple has in their products and services. Dell is dull. Monsterous and hideous laptop and desktop PCs running troublesome Windows Vista. That’s what they make. Who really wants to buy an ugly laptop or a PC tower anymore? Who would go into a Dell Store for this? Yuucck!
Apple has certainly set the bar high with it’s amazing products, thinking and innovation. No competition.
My father quotes Einstein as saying that the first sign of insanity is to repeat failure in the hope that it will succeed.
I tried to buy a Gateway computer at the Gateway store once. They said they could place my order over the web. I asked if I could have it delivered to the store instead of to my house, because I’m not home for the delivery. They said no. They even said it wasn’t a store! I guess they never read the sign.
Since the only reason for buying Gateway was because they allegedly had a store, and I had to chance it with home delivery anyway, I bought a Dell because I was steamed at Gateway.
Now, years later, Apple is in resurgence. OS X is wonderful, but that’s not enough to get me to buy Macs. The real reason I have two Macs is because Apple has a store, a technician I can talk to face-to-face without flying to Mumbai, and customer service that makes me feel like I’m their most important customer.
Dell stores will fail if the customer can’t leave the store with the computer in the trunk, if the customer can’t go back to the store for assistance and repair, and if Dell doesn’t start actually caring about its customers.