Dell Just Being Stubborn Now
There have been a number of stories out on DELL’s (DELL) new launch of retail stores. Here is a quote from one of the stories, from ZDNet:
The first store will open in Dallas’ NorthPark Center, while the second is destined for the Palisades Center in West Nyack, N.Y. Neither store will carry inventory. Rather, the shops will allow customers to order products through Dell’s Web site after trying out the display models, said Venancio Figueroa, a Dell spokesman.
Sorry, DELL, but you are just being stubborn. The beauty of a direct model is that you can customize things the way you want, while the beauty of a retail store is that you can walk out a few minutes later with product in hand. Retail stores without instant gratification equal nothing more than a real estate expense.
Source: Dell to try branded stores–sans inventory | Tech News on ZDNet
[…] One question I have had regarding DELL’s (DELL) recent slide is whether the horse that got them here has gone lame. In the past, DELL’s model was more efficient because declining prices meant that having a low inventory and no retail markup carried a large enough advantage to offset the cost of shipping the PC. Now, with the PC selling for $500 rather than $1,500 the shipping costs per unit are much higher and may actually make bulk shipments to retailers more cost effective than individual shipments to buyers. […]