May 31st, 2006
5 Reasons Why Dell’s Plan to Open Product-less Retail Stores is a Bad Idea
By Alice Hill
RealTechNews
For as long as I can remember, Dell was the champ. It took the concept of “Build it, Sell it” and turned it neatly around - finding that “Sell it, Build it” worked a whole lot better. Since then Dell has created a super-streamlined supply chain and manufacturing operation that companies from around the world study and marvel over, it made buying direct a legitimate and smart way to shop, and it made Michael Dell a wealthy man. Which is why we are all shaking our heads in disbelief over the news that Dell is envious of Apple’s gleaming retail stores, and has announced that it is going to open up a few stores of its own (in Dallas and New York), at a loss, to get the public awareness up and improve its image.
Here are 5 reasons why we think that is a very bad idea.
1. People Like to Bring Home Their Purchases
If it isn’t a 60 inch TV that requires home delivery, people who take the time to physically go to a store and wade through check out lines and doltish clerks, also like to have something to show for it. A tangible product they can enjoy. A new gaming console, a blender, a new DVD. Dell has announced that its stores won’t carry any merchandise. In my book that isn’t really a store, it’s a super sized kiosk.
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By Alice Hill






