Dell enters retail market in New Zealand

Dell Computer has initiated a pilot project selling its low-end Dimension 2400 PCs at New Zealand retailer The Warehouse.

Since mid-December, The Warehouse has been stocking the Dell PCs at around 80 of its 'Red Shed' stores in NZ. There are no plans to stock Dell computers at any of the retailer's 110 stores in Australia, according to a spokesperson at The Warehouse.

Speaking to CRN, Nicole Gemmell, communications manager at Dell Computer Australia, said Dell was the only brand being sold in the stores and it was the retailer's first foray into computer product sales.

The move was about Dell making its products available to low-end customers and follows similar retail pilots in the United States and Asia, Gemmell said.

The pilot would run until the end of January and its success would be determined by customer feedback and demand for the Dimension PC.

Dell was still undecided whether to introduce additional models once the pilot was completed. 'The Warehouse have been selected based on their geographic reach [in NZ],' said Gemmell. 'There's nothing on the drawing board at this point in time for Australia,' she added.

In the 2003 financial year, Red Shed had sales revenue in New Zealand of NZ$1.4 billion and an operating profit of NZ$146.6 million.