Angus Kidman30 January 2008, 9:49 PM
Dell says it will slash costs by shutting down 140 retail kiosks, but insists the move will not affect Australian consumers.
Plans to shut down Dell's kiosk sales operations in malls and airports in the US will not extend to the PC giant's Australian partnership with Westfield.
Dell announced earlier today that it would close 140 kiosks operating under the Dell Direct Store banner. "This move fits in with how our broad global retail strategy is evolving," Dell consumer VP Tony Weiss said.
While Internet and telephone direct purchases still make up the bulk of its sales, Dell has been under pressure from Wall Street to diversify its retail strategy.
Sales through large stores such as Wal-Mart and Staples have proved more successful than the kiosks, where staff help customers navigate the Dell web site and choose their preferred machine and options. The kiosks don't stock any product.
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In Australia, Dell has operated a similar model in conjunction with shopping mall giant Westfield, with nine kiosks in New South Wales, Victoria and Queensland also running under the Dell Direct Store banner. Locations include Melbourne's Fountain Gate, made infamous in TV comedy Kath & Kim.
Despite Weiss' comment about "global retail strategy", there are no plans for a similar rationalisation in Australia. "That is a US announcement -- there is no impact here," a Dell spokesperson told APC.
There has been much speculation that Dell will also extend its local presence via retail chains. Selling through stores allows customers to take home their purchases immediately, but reduces the possibility of customisation. It also potentially increases risk if the models shipped to those retailers prove not to be popular.