By William Trent, CFA of Stock Market Beat
According to ChannelWeb, whose audience admittedly has no interest in Dell (DELL) succeeding, Dell Pulls Plug On Plans For New York Retail Store:
“I can confirm for you that Dell is not moving ahead with plans to open a retail store in West Nyack,” said Dell spokesman Dwayne Cox. “Our global consumer business is focused on meeting the evolving needs of customers around the world with new products and services, and doing so with overall shorter development cycles and flexible manufacturing and distribution methods.”
We actually view this as a positive sign, as we never liked DELL’s plans for retail. As we said nearly a year ago:
The beauty of a direct model is that you can customize things the way you want, while the beauty of a retail store is that you can walk out a few minutes later with product in hand. Retail stores without instant gratification equal nothing more than a real estate expense.
Bravo for cutting losses and getting out while the getting was good. At least the company can check one thing off the ever-growing to-do list. (Next up, get current on the required SEC filings, hopefully?)
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