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Gateway To Close All Retail Stores

John Lazzaro writes "Looks like Gateway is throwing in the towel and closing all of its remaining retail stores, according to a Reuters/Yahoo! report." The story notes: "Gateway's stores, which will be closed on April 9, have long been criticized by analysts and investors as an expensive drag on cash flow because of lease costs and the difficulty of managing inventories", and goes on to suggest: "...with [the acquisition of] eMachines, Gateway doesn't necessarily need the added distribution channel the stores gave the company. In addition to selling Gateway's wares over the phone and via the Internet, eMachines PCs are sold at major retailers such as Best Buy."

21 of 324 comments (clear)

  1. Re:Yeah. by tverbeek · · Score: 2, Informative
    Anyone else tired of this yet?

    RTFpress release. This story's legit.

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  2. Confirmed: Not an April Fools Joke by Nova+Express · · Score: 4, Informative
    Or if it is, it's also mentioned on their web page.

    Although Apple seems to be doing quite well in retail, Gateway was losing money hand-over fist. (Gee, think that could have anything to do with quality?)

    My prediction: Either they merge with another company or they'll be out of business within two years.

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  3. not suprising if you'd ever been in one by brentlaminack · · Score: 4, Informative
    I've been in gateway stores a time or two. They were almost completely useless. If you wanted a price on particular configuration, the sales droids directed you to an internet-connected machine where you could go to the gateway web site and get a price quote. Duh... I could have done that from home.

    When I asked them about Linux, or a machine without an O/S, I was told "Microsoft won't let us do that." Double Duh.

    In short, it was about the most useless showroom experience I've had in a long time. Gateway will lose nothing by shutting these turkeys (cows?) down.

    1. Re:not suprising if you'd ever been in one by joeljkp · · Score: 3, Informative

      They served a couple main purposes, both very useful to those so inclined:

      1. local repairs - take your pc needing a repair or an upgrade to your local Gateway Country; better than juggling DHL packages from Dell

      2. try before you buy - when I was shopping for laptops, I checked out my local Gateway Country to try them out. In this case, I decided on a Dell, but the experience sure helped.

      --
      WeRelate.org - wiki-based genealogy
  4. Re:Its about time by Anonymous Coward · · Score: 1, Informative

    I actually work, well did work in a local store and while there were a lot of stores that werent profitable. Ours were extremely profitable and people liked the fact that they could bring their machine into a local service center. Profits greatly increased when they had more inventory and standard configurations.

  5. Dell Has stores too by bgleason · · Score: 2, Informative

    Dell has stores in about ten states.

    No idea if they're profitable though.

    http://www1.us.dell.com/content/topics/segtopic. as px/kiosk?c=us&cs=19&l=en&s=dhs

  6. Here's a link to the press release itself by Nova+Express · · Score: 4, Informative
    http://www.prnewswire.com/cgi-bin/stories.pl?ACCT= 105&STORY=/www/story/04-01-2004/0002139696

    POWAY, Calif., April 1 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE: GTW) said today that after reviewing strategic options for its network of 188 company-operated retail stores, it is planning to close the stores on April 9. Gateway also said it is pursuing wider retail distribution of its products in the U.S. and abroad. (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM05 0LOGO ) The company will continue direct sales of Gateway products to consumers and businesses via http://www.gateway.com and 1-800-Gateway. As a result of Gateway's decision, approximately 2,500 retail positions will be eliminated during the month of April as store operations wind down. Gateway will provide more detail on its brand and channel strategies, as well as any revenue and cost implications of closing the stores, when it announces its first quarter financial results April 29.

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  7. no its true by ForestGrump · · Score: 4, Informative

    i just called gateway store in Corona, CA.

    Talked to some guy, and he said yea, theyre closing. Should have a big sale, but doesnt know when.

    I'm gonna call back saturday and see..
    hope i can score some cheap shit!

    -Grump

    --
    Is it true that more people vote for the winner of American Idol, than vote for the president? -Ali G.
  8. Re:Why stores? by bgleason · · Score: 2, Informative

    EMachines sells set configurations to retail outlets. Gateway makes machines "custom to order" Even when buying at the physical store you frequently have your PC shipped from the factory.

    Micron tried to combine these markets by selling made to order machines at Best Buy but it didn't really catch on.

    Maybe with this merger a there will be a Gateway retail brand too. It could be a more expensive alternative to the EMachine base system.

  9. Re:where am i gonna check my email on the road? by LostCluster · · Score: 3, Informative

    Actually, the roll-out trays are designed so that you can't find anything without the assistance of a salesperson... open any drawer and a salesperson is supposed to immediately ask if you need help, since more likely than not you've opened the one that doesn't contain what you're looking for.

  10. Re:This is sad by Gojira+Shipi-Taro · · Score: 5, Informative

    I hear ya on the bad experiences w/ Gateway. Back around early 1995, I ran the computer systems for a college book store. We bought a Gateway 386 to run Office and a VBA based app that I wrote for the managers to input the register tapes into, which would do all the department breakdowns, and associated work, and fax a report to headquarters.

    Problem was, this machine couldn't run Windows 3.1 in 386 Enhanced mode. I had had a similar problem with a computer that I owned, and knew that this had to do with a faulty keyboard controller or circuits associated with it. Address Line 20 on the keyboard controller was actually used to switch between Protected and Enhanced mode on the 386. I related this information to Gateway tech support, and recieved incredulous reactions, assurances that such a thing was impossible, and no help whatsoever.

    Shortly after the warrenty ran out, Gateway admitted that there was a fault in the keyboard controller that was causing our problem. They refused to make good, even though I had given them the answer months before, and insisted on charging for the motherboard swap. My boss at the time was not particularly clueful about these things, and declined to press the matter.

    I, being a student at the time had to console myself with informing the manager of Gateway Customer service that "as long as I live, Gateway will never see another fucking cent from any person or company who comes to me for advice on computers. Enjoy that $200 fee, because it's going to cost you tens of thousands of dollars in lost sales" (and has).

    Some grudges are worth holding ;)

    --
    "Oh my God. This is terrible. This is the end of my Presidency. I'm fucked."; ~ Donald J. Trump
  11. Re:Why stores? by TheJavaGuy · · Score: 1, Informative
    Dell has no stores either and they are doing very well. Recently, it was noted in the news that Dell was way above its 60 billion dolloar revenue estimates.

    Maybe this will help Gateway get back in the mainstream.

    --
    Opera Watch - An Opera browser blog.
  12. Re:where am i gonna check my email on the road? by Johnny+Mnemonic · · Score: 2, Informative


    Try an Apple Store. Not nearly as many as Gateway has (had), but you can spend as long as you like on their computers, and use the internet pretty much without restriction. List. You don't even have to like Macs--the whole idea is that the experience will move someone "on the fence" to purchasing one for themselves, eventually.

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  13. Saw Gateway at Costco this morning by rjamestaylor · · Score: 4, Informative
    Weird. There was a $16xx P4 3.0GHz with an ok LCD monitor next to a Sony, HP and a eMachine. Comes with MS Office tools but only Word and MS Works (icky). I went into a Gateway store once, in 1999 iirc, looking for a cable for my 1997 Gateway2000 P5/200MMX. Ha! What a mistake! There's no parts just sample machines and sales people offering to help you fill out a credit app. So, feeling dumb for thinking I could get parts for my Gateway (how stupid could I be?) I pretended REALLY to be interested in a new laptop:
    • "Oh, forget the cable, I was really looking for a laptop like that one, can I see? Oooh. Nice. Ah. Color? Neat. Hmmm. Say I could use something like that -- say how's the screen in bright light, I notice that it's rather dark in here."
    • It's great -- how do you spell your mother's maiden name?

      "Could we remove it from the shackle for a minute and take it near the window to get an idea?"

      Sorry, we're not allowed to do that -- its against our security policy. Do you rent or own?

      "No, no, I don't want to take it OUTSIDE, just over near the, er, tinted *sigh* window to get an idea how...

      "Will you want a printer with your purchase?"

    What we had there was a failure to communicate.

    So, good bye Gateway Stores -- you sucked and we're better off without you.

    --
    -- @rjamestaylor on Ello
  14. Re:forget the PC's... by slaker · · Score: 2, Informative

    $3000 will also buy a brilliant 42" Samsung DLP monitor, which actually supports HDTV resolutions (the gateway display is EDTV-only), has more video inputs and doesn't burn in or ultimately leak the contents of its screen into open atmosphere.

    --
    -- I wanna decide who lives and who dies - Crow T. Robot, MST3K
  15. Re:Yeah Well.... by kannibal_klown · · Score: 2, Informative

    Mainstream news is picking this story up as well. One of the news television channels my dad watches was just showing this on its ticker.

    Before I saw that, I assumed this was BS as well.

  16. Re:So does this mean no more sales tax on web orde by fprefect · · Score: 2, Informative

    Just because they didn't charge you the sale tax for your state doesn't mean you don't have to pay it.

    --
    Matt Slot / Bitwise Operator / Ambrosia Software, Inc.
  17. Re:Not Funny Mods by ioexcptn · · Score: 2, Informative

    Correction...not fired...laid off. Big difference. Being laid off means that you can collect up to about $2G's a month on unemployment. Works for me.

    --

    Intelligence is like four wheel drive, having it just means you'll get stuck in more remote places.
  18. I saw this coming... by ddrang · · Score: 4, Informative

    ...over two years ago.

    I worked for a software company in California, and I was asked to purchase a PC for an emergency programming job. Our usual supplier took over a week to get a PC, and I remembered seeing the Gateway store on my way to work.

    Thinking the Gateway might be a cut above the HP Pavilion or something I would get at Best Buy I drove over there. There were about 3 people looking at computers -- one was getting a demo of something by a sales person -- a pretty empty store.

    It took me 3 minutes to walk around and peruse the various models, and then 10 more to get a sales rep to talk to me.

    I pointed at a PC and told him I wanted to get one and asked for a price. When he told me it would take a week to get the PC, I was floored.

    "You don't have any computers to sell here???"
    "No."
    "What's in all these cow-boxes you have along the windows?"
    "They're empty."
    "So what do you sell here?"
    "Well, you can order one here. The store is so that customers can come in and try the machines out and match their needs to the PC."
    "But I can order one from home with a couple of mouse-clicks!"

    He didn't have much of an answer for that. I drove on to Best Buy and got the Pavilion.

    I remember thinking that GW was crazy to open all these stores just so people could look and touch (but not take!) the machines. Expensive real-estate too -- all the stores I saw were in very high-rent areas.

    Maybe Inouye can keep Waitt's expensive schemes in check and keep the company afloat....

    1. Re:I saw this coming... by Anonymous Coward · · Score: 1, Informative

      yea...that was 2 years ago. the stores currently (or have been for the past 1 1/2 years) stock a majority of the pcs in the store. /former employee...needs a job now

  19. "Managing inventories"? by Udo+Schmitz · · Score: 2, Informative
    managing inventories

    Come again? What inventory? The only thing you could do at Gateway Stores was ordering your PC anyway. They only had some sample PCs to show off. Then again: Since when do have analysts the slightest clue about what they are talking ...