Feeds

Gateway turns showrooms into PC supermarkets

Desperate stock shifting bid

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Gateway has changed its retail strategy in a last-ditch attempt to shift Christmas stock.

From now until December 24, US shoppers will be able to walk out of any Gateway store with a shiny new PC under their arm. The PC maker previously used these outlets as showrooms for its products - which punters would order and have shipped to them.

Three PCs will be on offer through the scheme, which will run in all of Gateway's 320 Country Stores - the Gateway Essential 700 PC at $799, Essential 866 Digital Photo PC at $1,299, and Select 1000 Digital Music PC at $1,599.

There was more than a hint of desperation in the announcement, made in the last shopping week before Christmas. In an effort to drag in the punters, the manufacturer is also offering them the chance to send free seasonal video greetings from its stores - Gateway staff will even set aside valuable selling time to help shoppers record and send the snippets. It will also have a prize draw to give away 100 digital cameras to store visitors.

Meanwhile, it is promising Christmas delivery on build-to-order orders made as late as midday on December 23.

The strategy switch came as Dataquest issued a warning to PC makers not to get stuck with inventory. The research company is considering cutting its forecast for US consumer PC growth for 2001 to 12 per cent from 16 per cent amid profit and sales panic from major players in the computer industry.

"January will be a bloodbath for anybody who hasn't managed to get their equipment through the channel," Dataquest analyst Martin Reynolds told Reuters.

"Stuff that doesn't move before Christmas - especially the low-end equipment - will form a big overhang."

Last month Gateway warned that disappointing sales over the Thanksgiving weekend meant it would not meet sales targets for the quarter. At the time CFO John Todd said the company was expecting a price war to kick off in next year's Q1, adding: "People are going to have to be aggressive to get the inventory out." ®

Related Stories

Gateway in PC price war gloom
Global PC sales to grow 20 per cent in 2001
Gateway hit with shareholder lawsuit
Compaq joins profit warning parade

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.