TechWeb

Wal-Mart To Sell Dell Desktops In June

May 24, 2007 (02:05 PM EDT)

Read the Original Article at http://www.informationweek.com/news/showArticle.jhtml?articleID=199701984


Wal-Mart Stores on Thursday said it would sell Dell desktops in stores in the United States, Canada and Puerto Rico, beginning next month.

The world's largest retailer said it would offer several models built exclusively for Wal-Mart. One would be a Dell Dimension Multimedia Desktop, which would be available at all 3,400 Wal-Mart and Sam's Club stores in the United States and Puerto Rico.

A second model, which would be announced later, would be sold at 3,000 stores. Both models would be available June 10, and would sell for less than $700. At the same time, Wal-Mart would carry different exclusive models in Wal-Mart and Sam's Club stores in Canada.

The companies said they would evaluate sales and "make changes accordingly in distribution or product based on consumer feedback and purchase response, already anticipated to be high."

Wal-Mart said this month that it planned to expand its electronic offerings in stores. "Dell is a proven electronics brand and adds a new compliment to our other high quality desktop selections," the retailer said in a statement.

Dell has said that it planned to sell its computers through retailers, as well as through its own Web site. The move is part of the company's strategy for boosting sales since founder Michael Dell returned as chief executive this year.

The company has been steadily losing market share to rival Hewlett-Packard. In the first quarter, Dell PC shipments were down 7.8% from the same period a year ago, while HP shipments soared by 28.7%, according to Gartner.

Also on Thursday, Dell started shipping two desktops and a notebook with the Linux operating system pre-installed. The offering was sparked by customer demand on Dell's feedback site.