Dell's Doing the Right Thing with Retail

Dell plans to sell its desktop PCs in Walmart stores soon.

It's a major shift for Dell, which historically eschewed retail sales in favor of the direct-to-consumer model.

I was watching CNBC's story on this earlier today and an analyst said the latest move could mean a dip in margins for Dell. Going to the retail channel could even be an act of desperation on part of the company, the segment suggested.

Sure, Dell's margins will come under pressure but the company needs to make this change.

The direct sales model worked very well for the company till recently but now with the increasing popularity of notebooks, Dell is facing new challenges.

In the last few weeks, I have been shopping for a laptop for and Dell is one of the brands I was looking at.

Yet I don't think I will eventually buy a Dell because I am not comfortable with the brand--for laptops.

I want to see the design, finish, and quality of a device I plan to spend a $1000 on.

I have yet to see any new Dell laptop in any store and I just don't feel a connection to it. With increasing competition and so many choices in the market, Dell's prices are also not low enough to draw me to them.

The idea of buying a notebook off the Dell website doesn't seem to work for me--though when I make my purchase eventually it is more likely to be on the Web.

Dell is starting with two low-end desktop models in stores but I hope it takes the plan to the next level. If I can see, touch and get more comfortable with the brand, I will buy it off their website.

Their retail strategy could then become the perfect complement to their direct-to-consumer model.