Dell Computer Corp, which started out as a mail-order-only shop, is going back to its roots after diversifying a year or three back. It announced yesterday that it will discontinue sales through the traditional retail channel, and that the move affects five retail partners in the US, Canada and Europe, which together are expected to contribute less than 2% of consolidated revenues in the company’s second fiscal quarter to the end of the month. It says the aim is to emphasise more effective ways to reach the consumer that build on Dell’s strengths and offer the opportunity for more robust profit margins. It will continue to support sales through the retail outlets until existing in-store inventory runs out. The five retailers affected are CompUSA Inc, Best Buy Co, WalMart Stores Inc’s Sam’s Club, Price CostCo Inc in Canada and PC World Ltd here in the UK Dell said later.
