Gateway drops direct delivery - PC Retail

Gateway drops direct delivery

Vendor will switch to an indirect sales model
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Gateway’s cowhide designed boxes will no longer be delivered to customers’ doors as the firm abandons its direct sales model.

The company had sold direct since it started trading in 1985, making a name for itself by custom building PCs.

Last year, Acer took over Gateway in a $710 million acquisition and this alteration to its business model will bring it in to line with the Korean based firm. It will also simplify the business and significantly cut costs.

Although there will be a number of jobs cut as part of the restructuring, a spokesman for Gateway said that some of these cutbacks have already been taking place since last years buy out.

Gateway now sells through a number of retailers including Best Buy, Wal-Mart and Office Depot.

“We believe that our retail and e-tail partners offer consumers the best, easiest and most effective way to purchase Gateway products,” said Mark Hill, US general manager for Acer. “Moving forward, we are pleased to be able to offer Gateway products through thousands of retail storefronts and major online and telephone-based channel partners both in the United States and abroad.

“We are shifting Gateway’s distribution method to better align with Acer’s successful global strategy, which was built upon an indirect model. As the only top-tier PC company without a competing U.S. direct sales force, our commitment to the channel is unparalleled in the industry.”

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