Dell Computer has decided to get out of displaying its products in kiosks located at malls in favor of promoting its business in retail chain stores.
The company, which originally launched its kiosks back in 2002 to help its consumer direct business, has moved its products into Wal-Mart, Best Buy and Staples in the U.S. while striking up relationships with a wide range of retailers in other parts of the world including Carrefour and Tesco.
Tim Bajarin, a technology consultant, said the 140 kiosks operated by Dell were limited in their ability to affect sales because consumers were not able to purchase a computer at the mall site. Orders had to be placed with Dell, according to its consumer direct model.
"This was a minor attempt to get Dell products in front of customers," he told The Associated Press. "Dell missed the real trend in retail, and is having to play catch-up."
Bob Kaufman, a Dell spokesperson, told the news service that the kiosks "were very good for the business at the time, and now we're moving into a variety of retail outlets. This is clearly an instance of Dell listening to customers."
Tony Weiss, vice president for Dell's global consumer business, said, "Ever since we began our journey into retail, we wanted to give customers the opportunity to call, click, or visit Dell and have access to our award-winning products. This move fits in with how our broad global retail strategy is evolving."
Discussion Questions: What is your reaction to Dell's decision to close its mall kiosks? What is your assessment of how Dell operated the kiosks? Do you see mall kiosks as an effective means for retailers and manufacturers not normally in malls to increase visibility and drive sales?