Dell Stumbles at Wal-Mart

Updated from 10:14 a.m. EDT

SAN FRANCISCO -- After dissing retail stores for years, Dell(DELL Quote) has changed its tune.

The PC maker teamed up with retailing powerhouse Wal-Mart(WMT Quote) earlier this summer to sell a portion of its desktop and notebook PC models.

Now, as Americans honor the new school year by treading department store aisles, Dell is set to benefit from its bricks-and-mortar presence and potentially revive its tepid sales.

Expectations about Dell's renewed focus on the consumer, with founder Michael Dell once again serving as CEO, have helped buoy the company's stock, which is up about 25% since mid-March.

In recent visits to five Wal-Mart stores in the San Francisco Bay Area, however, TheStreet.com found a company still struggling to find its footing in the rough world of retail.

With competitors like Hewlett-Packard (HPQ Quote), Toshiba and Acer well entrenched in Wal-Mart stores, Dell PCs appeared to be at a distinct disadvantage in the battle for shelf space and promotional material.

Demonstration units of Dell PCs were nowhere to be found, and the Dell PCs in stock varied from store to store. The salesman at one Wal-Mart store said they had received only a single Dell laptop, and having sold it a couple of weeks ago, was unsure when, or if, any others would be coming in.

Certain stores, on the other hand, featured what seemed like an ample supply of Dell desktop PCs on the shelves, with the machines sporting a compelling set of features and specifications vis-à-vis the competing offerings.