Dell Finds Another Retail Partner

SAN FRANCISCO -- Dell(DELL - Cramer's Take - Stockpickr) said Monday that it will begin selling PCs and printers at Staples(SPLS - Cramer's Take - Stockpickr) stores next month.

The deal broadens Dell's footprint in the brick-and-mortar outlets it once eschewed, and comes ahead of the crucial holiday sales season. According to Dell, the company's products will be available at 1,400 Staples stores throughout the U.S. beginning Nov. 11.

With the Staples deal, Dell said its products will be available at 10,000 stores worldwide, including Wal-Mart(WMT - Cramer's Take - Stockpickr) in North America and Gomes in China.

Five months ago, Dell sold its products exclusively through Internet and telephone orders, championing the "direct" model it pioneered. As the PC business has evolved, with growth increasingly involving overseas consumers and notebook PCs, the company has recognized a need to sell its wares in retail stores.

According to industry research firm Gartner, Dell's PC shipments increased 3.5% year over year in the third quarter, whereas competitors with a heavy retail focus such as Hewlett-Packard(HPQ - Cramer's Take - Stockpickr) and Acer grew shipments 33% and 58%, respectively.

Unlike Wal-Mart, Staples will sell Dell printers alongside its PCs. Staples will offer two all-in-one models -- which combine an inkjet printer, scanner and fax -- as well as a laser printer and flat-panel monitors.

Staples will offer two Dell Inspiron notebook PC models and an Inspiron desktop. Shares of Dell were off 25 cents at $27.67 in midday trading. Staples was up 2.8%.