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Dell Following Apple's Retail Example?

Tuesday May 23, 2006 2:22 pm PDT by Arnold Kim
PCPro reports that Dell has announced plans to open two retail stores later this year. Dell has been successful as a direct (mail order) only operation which is claimed to be the most cost-effective.

The company has always insisted that retail stores would be loss making, but Apple's success in generating over $1bn worth of sales in a single quarter through its network of more than 100 stores appears to have presaged a change of heart.


Dell currently does operate 161 kiosks in shopping centers nationwide, but this retail initiative would open two 3000 square foot stores - one in Dallas, TX and another in New York. Customers will not be able to purchase Dell computers at the store, however. Instead, the stores will simply offer demos and sales staff to answer questions.

Dell's expansion, of course, will draw comparisons with Apple's retail expansion which has received a lot of media attention. Apple's 5th Avenue Store opened just last week to a long line of waiting customers.

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