Dude, Your Dell's at Wal-Mart

Pop quiz! What chief executive of a personal computer maker bearing his own name once uttered these words: "The retail channel is a no- or low-return business. For us it has been losing money for some time."

That's right. Words always come back to haunt you, Michael Dell.

In 1994, Dell Computer stopped selling its computers through big-box retailers like Wal-Mart, Costco, and Best Buy, and instead went straight to the consumer through a direct-sales model. The move was counterintuitive, and smart. Dell eventually became the most profitable computer maker, as the internet helped push its retail sales model past competitors Hewlett-Packard and Compaq.

But that was then. Today, Dell is heading right back to the very channel that produced those no-or-low returns back in the 1990s. In its first major break from its direct sales model, Dell announced today that it will begin selling its computers in 3,000 Wal-Mart stores on June 10.

This time, Dell left the rhetoric for his spokesman to handle. "Customers want more and new ways to buy our products, and we plan on meeting their needs on a global level," the spokesman said. "Offering Dell Dimensions in Wal-Mart is a great example of this approach."

by Megan Barnett

Photograph by Chip East/Bloomberg News