News

Sears, Dell end kiosk experiment

June 23, 2003

HOFFMAN ESTATES, Ill. -- A high-profile experiment between Sears, Roebuck and Co. and Dell Computer Corp. has ended with Dell shutting down personal-computer sales kiosks in four Sears department stores.

According to an article in Crain's Chicago Business, the Texas-based computer maker closed the kiosks in mid-May, just four months after introducing them in Sears. A Sears spokesman said the move was a joint decision. Sears employees kiosk technology in other departments. See related story, "Sears using kiosks to qualify news sales hires."

When the project was rolled out in late January and early February, he said, Sears and Dell agreed to evaluate the progress and by this summer determine whether they should move forward. He declined to provide a reason for the termination of the trial, but published reports have cited poor sales, the article said.

A Dell spokesman said the tryout had "run its course," but also declined to elaborate, saying only that Dell had learned from the experience and "made a decision to put our resources elsewhere," according to the article.

The kiosks had been placed in a Sears store in Austin, Texas, and three Sears locations in Florida.

At least one retail analyst isn't reading much into the end of the collaboration. Neil Stern, a partner at Chicago-based retail consultant McMillan/Doolittle LLC, said that although the test didn't pan out, it isn't going to hurt Sears because the personal-computer category was one the retailer had been de-emphasizing, the article said.

Dell entered into the trial with Sears based on the success of its mall-based computer sales kiosks, which were originally rolled out for the back-to-school season. They were so successful after the first two seasons that Dell kept them open for the holidays and then decided to operate them year-round.

Dell, which built a reputation as a direct seller, now has 57 retail kiosks in malls around the country, staffed by Dell employees who can answer technical questions and help customers place orders. The kiosks don't stock equipment; instead Dell customers can order computers and other products online through the kiosk, according to the article.

Stern said the Dell kiosks could have helped Sears keep a presence in the home office category without having to stock inventory. But he also said he doesn't think Sears was the problem in the equation.

"Sears is as good a place as any" to sell Dell products, he said in the article.

The Sears spokesman said the department store chain still sells a limited number of computers by such makers as Sony Electronics and Hewlett-Packard Co., but the line is "not a huge strength or emphasis."