Dell is closing down 140 of its Dell Direct kiosks in malls throughoutthe U.S.

Dell shuts 140 retail kiosks in US
Dell is closing down 140 of its Dell Direct kiosks in malls throughout
the U.S.

Agam Shah
PC World
Friday, February 1, 2008; 12:19 AM

Dell on Wednesday announced the shutdown of retail kiosks in malls
throughout the U.S. as it adjusts its evolving product distribution
strategy.

The closings comes at a time when Dell is repositioning its retail
strategy to attract more customers by selling products through its Web
site, retail outlets and over the phone.

Dell had over 140 kiosks, called Dell Direct stores, for customers to
buy products, including PCs, TVs and printers. Dell representatives
staffed the kiosks and assisted buyers in choosing products and placing
orders. The kiosks didn't actually carry inventory so products were
shipped to buyers.

This change does not impact Dell Direct stores in Canada, Asia-Pacific
and Japan, said Lionel Menchaca, digital media manager at Dell in ablog
entry. The company has about 50 stand-alone kiosks outside the U.S.

"We started offering Dell systems through retailers about six months
ago, and now customers can buy Dell desktops and laptops through more
than 10,000 retail outlets worldwide," Menchaca wrote.

The needs for kiosks declined as retail stores provide more
accessibility to Dell products, said Dell spokesman David Frink. The
kiosks, introduced in 2002, are being closed immediately, Frink said.

The shutdown might lead to laying off employees who staffed the kiosks,
Frink said. He declined to comment on an exact number of layoffs and
charges that the company might take relating to the shutdown.

Dell has expanded its in-store offerings over the last six months by
signing up retailers globally to sell its products, including Best Buy
and Wal-Mart in the U.S., Tesco in the U.K. and Bic Camera in Japan.

The kiosks were just an expansion of the company's online and catalog
sales, said David Daoud, an analyst at IDC. "If anything, it shows that
Dell doesn't want kiosks to compete with the brick and mortar stores,"
he said. Customers prefer to buy products online or at a store so having
kiosks doesn't fit with Dell's evolving U.S. business model, Daoud said.

However, kiosks will be an effective tool to facilitate brand awareness
for Dell in the international and emerging markets, especially for
customers who can't go online, Daoud said. Though it has a significant
enterprise presence internationally, Dell has the potential to grow in
the consumer space, Daoud said.

Dell's retooled retail strategy has helped the company expand its lead
over Hewlett-Packard as the largest U.S. PC vendor in the fourth quarter
of 2007, according to figures from analyst firms Gartner and IDC.
However, HP remained the world's largest PC dealer, topping Dell, Acer
and Lenovo, according to figures from both firms.

© 2008 PC World Communications, Inc. All rights reserved

http://www.washingtonpost.com/wp-dyn...src=newsletter

"Tony Harding" <> wrote in message
news:47a33b00$0$6344$...
> Dell shuts 140 retail kiosks in US
> Dell is closing down 140 of its Dell Direct kiosks in malls throughout the
> U.S.
>


And just to pile on:

http://www.statesman.com/business/co.../0201dell.html

"Tony Harding" <> wrote in message
news:47a33b00$0$6344$...
> Dell shuts 140 retail kiosks in US
> Dell is closing down 140 of its Dell Direct kiosks in malls throughout the
> U.S.
>
> Agam Shah
> PC World
> Friday, February 1, 2008; 12:19 AM
>
> Dell on Wednesday announced the shutdown of retail kiosks in malls
> throughout the U.S. as it adjusts its evolving product distribution
> strategy.
>
> The closings comes at a time when Dell is repositioning its retail
> strategy to attract more customers by selling products through its Web
> site, retail outlets and over the phone.
>
> Dell had over 140 kiosks, called Dell Direct stores, for customers to buy
> products, including PCs, TVs and printers. Dell representatives staffed
> the kiosks and assisted buyers in choosing products and placing orders.
> The kiosks didn't actually carry inventory so products were shipped to
> buyers.
>
> This change does not impact Dell Direct stores in Canada, Asia-Pacific and
> Japan, said Lionel Menchaca, digital media manager at Dell in ablog entry.
> The company has about 50 stand-alone kiosks outside the U.S.
>
> "We started offering Dell systems through retailers about six months ago,
> and now customers can buy Dell desktops and laptops through more than
> 10,000 retail outlets worldwide," Menchaca wrote.
>
> The needs for kiosks declined as retail stores provide more accessibility
> to Dell products, said Dell spokesman David Frink. The kiosks, introduced
> in 2002, are being closed immediately, Frink said.
>
> The shutdown might lead to laying off employees who staffed the kiosks,
> Frink said. He declined to comment on an exact number of layoffs and
> charges that the company might take relating to the shutdown.
>
> Dell has expanded its in-store offerings over the last six months by
> signing up retailers globally to sell its products, including Best Buy and
> Wal-Mart in the U.S., Tesco in the U.K. and Bic Camera in Japan.
>
> The kiosks were just an expansion of the company's online and catalog
> sales, said David Daoud, an analyst at IDC. "If anything, it shows that
> Dell doesn't want kiosks to compete with the brick and mortar stores," he
> said. Customers prefer to buy products online or at a store so having
> kiosks doesn't fit with Dell's evolving U.S. business model, Daoud said.
>
> However, kiosks will be an effective tool to facilitate brand awareness
> for Dell in the international and emerging markets, especially for
> customers who can't go online, Daoud said. Though it has a significant
> enterprise presence internationally, Dell has the potential to grow in the
> consumer space, Daoud said.
>
> Dell's retooled retail strategy has helped the company expand its lead
> over Hewlett-Packard as the largest U.S. PC vendor in the fourth quarter
> of 2007, according to figures from analyst firms Gartner and IDC. However,
> HP remained the world's largest PC dealer, topping Dell, Acer and Lenovo,
> according to figures from both firms.
>
> © 2008 PC World Communications, Inc. All rights reserved
>
> http://www.washingtonpost.com/wp-dyn...src=newsletter

good, perhaps they will stop charging sales tax in my state and in turn make
their machines more price competitive. that would give them a price
advantage over hp which would likely result in them selling more units.

I'll bet they didn't close any centers in India.
"S.Lewis" <> wrote in message
news:kuHoj.77260$.. .
>
> "Tony Harding" <> wrote in message
> news:47a33b00$0$6344$...
>> Dell shuts 140 retail kiosks in US
>> Dell is closing down 140 of its Dell Direct kiosks in malls throughout
>> the U.S.
>>
>
>
> And just to pile on:
>
> http://www.statesman.com/business/co.../0201dell.html
>
>
>
>

"BigJim" <> wrote in message
news:. ..
> I'll bet they didn't close any centers in India.


Glad you brought it up ;-)

http://www.latimes.com/technology/la...,5034745.story

Christopher Muto,
I wouldn't be surprised that your state tax division doesn't get the sales
and shipping records for future purchases from Dell, and send you notice
that you bought a dell and had it shipped to your state. Just like some
states are doing for out of state cigarette & liquor sales.

--
Rich/rerat
(RRR News) <message rule>
<<Previous Text Snipped to Save Bandwidth When Appropriate>>


"Christopher Muto" <> wrote in message
news:...

good, perhaps they will stop charging sales tax in my state and in turn make
their machines more price competitive. that would give them a price
advantage over hp which would likely result in them selling more units.

that's a double negative, and am not sure that was what you meant to say.
many states tax returns now include a line item for filers to enter out of
state mail order purchases for which the local sales tax was not collected.
this makes is simpler to pay the sales tax rather than sending payment on an
individual transaction basis, however the reality is that it is impossible,
and not economically practical, to for states to enforce. but i trust that
most people are honest and pay their taxes. though i have seen buying
decisions on high priced items made based on weather or not sales tax was
collected - and that was my point.

"Rich/rerat" <> wrote in message
news:. ..
> Christopher Muto,
> I wouldn't be surprised that your state tax division doesn't get the sales
> and shipping records for future purchases from Dell, and send you notice
> that you bought a dell and had it shipped to your state. Just like some
> states are doing for out of state cigarette & liquor sales.
>
> --
> Rich/rerat
> (RRR News) <message rule>
> <<Previous Text Snipped to Save Bandwidth When Appropriate>>
>
>
> "Christopher Muto" <> wrote in message
> news:...
>
> good, perhaps they will stop charging sales tax in my state and in turn
> make
> their machines more price competitive. that would give them a price
> advantage over hp which would likely result in them selling more units.
>
>
>

"Christopher Muto" <> wrote in message
news:...
> that's a double negative, and am not sure that was what you meant to say.
> many states tax returns now include a line item for filers to enter out of
> state mail order purchases for which the local sales tax was not
> collected. this makes is simpler to pay the sales tax rather than sending
> payment on an individual transaction basis, however the reality is that it
> is impossible, and not economically practical, to for states to enforce.
> but i trust that most people are honest and pay their taxes. though i
> have seen buying decisions on high priced items made based on weather or
> not sales tax was collected - and that was my point.
>


I'd only add that I believe Dell has been charging sales tax now in all 50
states for a while, based upon having any physical presence in a given
state.

Not sure how that works, but I'd understood that this was due to having
support/onsite/contracted workers for service in each state.

Bottom line is that I'm sure they charge tax for all 50 now. A long time ago
there was a loophole when buying from their "Home" division (no tax) instead
of the "Small Business" division (taxed). That went away several years ago.


Stew

"S.Lewis" <> wrote in message
news:LZ%oj.78467$.. .
>
> "Christopher Muto" <> wrote in message
> news:...
>> that's a double negative, and am not sure that was what you meant to say.
>> many states tax returns now include a line item for filers to enter out
>> of state mail order purchases for which the local sales tax was not
>> collected. this makes is simpler to pay the sales tax rather than sending
>> payment on an individual transaction basis, however the reality is that
>> it is impossible, and not economically practical, to for states to
>> enforce. but i trust that most people are honest and pay their taxes.
>> though i have seen buying decisions on high priced items made based on
>> weather or not sales tax was collected - and that was my point.
>>
>
>
> I'd only add that I believe Dell has been charging sales tax now in all 50
> states for a while, based upon having any physical presence in a given
> state.
>
> Not sure how that works, but I'd understood that this was due to having
> support/onsite/contracted workers for service in each state.
>
> Bottom line is that I'm sure they charge tax for all 50 now. A long time
> ago there was a loophole when buying from their "Home" division (no tax)
> instead of the "Small Business" division (taxed). That went away several
> years ago.
>
>
> Stew
>

*Correction: they charge in those states that actually have sales tax to be
collected.

Christopher Muto,
Grammar was never my strong point. I thought I was clear about my opinion on
the sales tax issue. Let me say it a different way. If the Dell was
charging, collecting, and sending the sales tax for online orders shipped to
a state, because they had Kiosks in the state. Removal of Kiosks from the
state, will not automatically stop Dell from continuing charging,
collecting, and sending the sales tax on future online orders, shipped to
the state. The mechanism is already established, for collection of these
fees, so there would be no or a minimum of additional costs to continue this
practice, for Dell and/or the State. I would bet that these states will give
notice to Dell that they will need to continue to charge/collect the sales
tax for purchases by their residents. And as time goes by, more states will
be enacting laws for online purchases, requiring the seller to collect the
sales tax. It is easier for a state to make the large online sellers, such
as Dell, collect these taxes, for items that they sell.

You are right, for some sales it not practical for the state to try to
collect sales tax. Take the average garage sale, that you might have on a
summer weekend. I would be curious how many report to the state, on the
money that was taken in for the sales. Probably not many.

I live near Detroit, if I went down to Toledo (less than 50 miles away),
bought a $ 2000.00 HDTV because a store there was having a great sale. I
would at the time pay the sales tax for Toledo, Ohio. Then I would have to
list the purchase on my Michigan state tax form, and pay the sales tax
again, because I'm a Michigan resident. Then I would have to file something
with the State of Ohio tax division, to hopefully get a refund from them,
for the sales tax originally collected. Most people would say themselves I
purchased the item in Toledo, paid the appropriate taxes to Toledo and the
state of Ohio, why should Michigan get a dime from the purchase. Plus why
should I or any Michigan resident incur the cost, for a similar purchase,
for the refund from Ohio, in time and money.

I know my cash strapped state of Michigan is making a real effort, in going
to court and getting order/shipping information from out of state cigarette
sellers, as far as California, to make sure they get every last dime out the
purchase.

In addition, Michigan is now requiring "out of state" companies that do
business in the state, to start charging & collecting Michigan sales
(service) taxes, for certain services.
http://arborlaw.com/blog/2007/11/30/...fect-tomorrow/

--
Rich/rerat
(RRR News) <message rule>
<<Previous Text Snipped to Save Bandwidth When Appropriate>>


"Christopher Muto" <> wrote in message
news:...
that's a double negative, and am not sure that was what you meant to say.
many states tax returns now include a line item for filers to enter out of
state mail order purchases for which the local sales tax was not collected.
this makes is simpler to pay the sales tax rather than sending payment on an
individual transaction basis, however the reality is that it is impossible,
and not economically practical, to for states to enforce. but i trust that
most people are honest and pay their taxes. though i have seen buying
decisions on high priced items made based on weather or not sales tax was
collected - and that was my point.

"Rich/rerat" <> wrote in message
news:. ..
> Christopher Muto,
> I wouldn't be surprised that your state tax division doesn't get the sales
> and shipping records for future purchases from Dell, and send you notice
> that you bought a dell and had it shipped to your state. Just like some
> states are doing for out of state cigarette & liquor sales.
>
> --
> Rich/rerat
> (RRR News) <message rule>
> <<Previous Text Snipped to Save Bandwidth When Appropriate>>
>
>
> "Christopher Muto" <> wrote in message
> news:...
>
> good, perhaps they will stop charging sales tax in my state and in turn
> make
> their machines more price competitive. that would give them a price
> advantage over hp which would likely result in them selling more units.
>
>
>