Dell Returns to Retail

Dell Returns to Retail
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Dell had set up 150 kiosks⁵ across US and Canada where customers were allowed to speak to sales representatives about its products. As Dell tasted success with its kiosks, it planned to open its retail stores. Michael Dell, the Chief Executive, Dell Computers said, “That decision was based on the success of the more than 150 ‘kiosk’ sales centers the company currently has across the country.”⁶

However, some experts opined that Dell’s approach of following Apple’s retail strategy may not turn out to be successful for Dell as it was only providing technical assistance to customers as opposed to Apple’s approach of selling its products through its retail stores. Cindy Shaw, an analyst with Moors & Cabot⁷ said,

“Although what we have seen so far of Dell’s proposed store layout in many ways resembles Apple’s successful retail stores, Apple carries inventory and offers tech support in its stores. It is not clear to us that the economics of Apple’s staffing model - likely supported by robust iPod sales - make sense for Dell.”⁸

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[5] Launched in 2002, Dell’s Kiosks were used to display Dell’s products, where in the customer could place an order directly with Dell through a computer in the booth.

[6] Armando Duke, “Dell Enters Retail Market With Plans for Stores in TX and NY,” www.betanews.com, May 25, 2006.

[7] Established in 1890 by John F. Moors and Charles Cabot for handling personal investments. The firm has grown to serve the needs of thousands of investors.It is the oldest independent member of the Boston Stock Exchange.

[8] Matt Slagle, “Dell to open retail stores in Texas, N.Y,” www. seattlepi.nwsource.com, May 24, 2006.

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