Dell Setting Up Kiosks In Malls

After a successful trial last Christmas, Round Rock, Texas-based Dell opened a kiosk last week in Austin and plans to open 20 around the country in the next two months.

The kiosks are about as close to retail as Dell will get.

"The reason we're doing this is to give customers a chance to see, touch and feel our products," says Chris Bates, senior manager of Dell's Direct Store program.

Mall customers also can speak with sales representatives about computers, digital cameras, sound systems, printers and other equipment at the Dell Direct Store.

Customized orders must be placed online or over the telephone. The order is built at a Dell factory and delivered to the customer's home.

Dell says the concept will help its burgeoning consumer business while staying true to its direct sales model.

With help from a successful television advertising campaign and a partnership with home-shopping channel QVC, revenue from consumer sales at the company best known for selling to businesses, schools and government has grown 26 percent in the past quarter. Unit shipments grew 45 percent during that time.

Kevin Hunt, a Dell analyst for Thomas Weisel Partners, says the kiosks are a good way for Dell to reach customers without taking the costlier risk of having an inventory of products and selling them at stores.