Dell plans to close mall kiosks in U.S.

DALLAS - Dell Inc., which has been pushing its computers into more retail stores, said Wednesday it will close its 140 shopping mall kiosks in the United States.

Dell now sells computers and other devices in more than 10,000 stores around the world, including Wal-Mart Stores Inc. and Best Buy Co. The kiosks, where customers could place orders for delivery, may be losing some of their novelty.

Tony Weiss, the vice-president of Dell's global consumer business, said closing the kiosks "fits in with how our broad global retail strategy is evolving."

Dell began opening the kiosks in 2002 to boost sales of notebook computers, which didn't fit as well within the company's practice of selling directly to customers over the Internet and by phone. More than other customers, people considering notebooks wanted to see and feel the machines before buying them.

But Dell has cut more deals with retailers as the growth of PC sales slowed and the Round Rock-based company lost its sales lead to Hewlett-Packard Co., which sells machines in many stores. Dell's U.S. consumer revenue declined 26 per cent for the six months ended Aug. 3, compared with the same period in 2006.

Tim Bajarin, a technology consultant who tracks Dell, said the kiosks were hindered because customers couldn't buy a computer there. They had to place orders the typical Dell way - online or over the phone. At the same time, H-P was making a big push into Best Buy and other stores.

"This was a minor attempt to get Dell products in front of customers," Bajarin said. "Dell missed the real trend in retail, and is having to play catch-up."

Dell officials declined to comment on sales generated from the kiosks.

"They were very good for the business at the time, and now we're moving into a variety of retail outlets," said Bob Kaufman, a company spokesman. "This is clearly an instance of Dell listening to customers."

Kaufman said the closings have begun and will be completed in the next few days. He declined to say how many jobs would be lost.

Dell said it is committed to the direct-sales business, and kiosks outside the United States, numbering about 50, aren't affected by Wednesday's announcement.