• Austin American-Statesman, Friday, May 25, 2007 11:30 AM

Wal-Mart, which pulled out of retail stores in 1994 to focus solely on direct sales to customers, will start selling personal computers at 3,500 Wal-Mart and Sam's Club stores starting June 10. Dell will offer made-for-Wal-Mart Dimension Multimedia desktops; Wal-Mart says the "package bundles" will cost less than $700.

Dell eventually plans to sell through other retailers, too, and might open its own stores. The move is crucial: The consumer sector is the strongest part of the computer market now, and Dell's sales have been hurt by its lack of a retail presence.

Pacific Crest Securities estimates that teaming up with a major retailer could boost Dell sales by as much as $800 million a year, a 14% increase. But if Dell is to succeed on the retail front, it must expand its reach quickly, says J.P. Gownder, a principal analyst with Forrester Research.

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