"Dell Plugs in First Airport Retail Kiosk at Dallas/Fort Worth"

Thursday, August 7, 2003

Dell Plugs in First Airport Retail Kiosk at Dallas/Fort Worth
The Dallas (TX) Morning News


You're waiting for a flight at the airport and have had your fill of snacks
and souvenirs. Want to buy a computer?

That's what Chris Karam did Wednesday morning at Dallas/Fort Worth
International Airport, while waiting for a connection to Texarkana. He
bought a $2,000 Dell laptop and printer for his college-bound daughter on
his way home from a visit to Minnesota. 

Mr. Karan's wife waited with the carry-on luggage as he and his son and
daughter perused the display models and questioned the sales rep.

"We'd done a lot of research before, but we hadn't had a chance to see one
until today," Mr. Karam said. "There's no Dell store in Texarkana."

There aren't many Dell stores anywhere. Austin-based Dell Inc., the world's
leading computer maker and a pioneer in online sales, began to sell in
retail locations only last year. The company has about 60 kiosks in malls in
nine states, but the company says its kiosk at Gate C7 is the first computer
sales outlet in any airport.

Mr. Karam, chief executive of Christus St. Michael Health System, travels
every few months but says he rarely shops at airports. 

"I bought a briefcase one time, but that's about it," he said, while the
Dell sales rep completed the online order form. 

The company says it was lured by the airport's busy foot traffic and
passenger demographics. 

On average, 150,000 people pass through D/FW's terminals each day, and
passenger dwell times are about 90 minutes. The kiosk is just outside a
newsstand and gift store.

Two-thirds of the passengers are between the ages of 25 and 49, and more
than half have household incomes of $70,000 or more. 

"That's the kind of demographics Dell and other companies are looking for,"
said Pat Gleason, the airport's vice president of revenue management.

This isn't the first time travelers have had a chance to peruse high-tech
equipment. Over the years, D/FW has hosted product displays by Intel Corp.
and Microsoft Corp. But this is the first time such products have been for
sale.

Irving-based marketing services firm Airport Access Inc. developed the deal
with Dell, and the firm says it hopes to bring similar kiosks for cellphone
manufacturers and other consumer electronics to the airport. 

Mr. Gleason, whose department oversees concessions, sees kiosks as a way to
shoehorn more retail sites into the airport and bring in more revenue. 

Sales from restaurants, bars and gift shops represent about 25 percent of
the airport's non-aviation revenue, which has become increasingly important
as D/FW looks for ways to strengthen its financial base. 

Travelers through D/FW spend about $6.50 per person in the airport's
restaurants and shops -- mostly on food. Retail sales per passenger are less
than $2.50. Dell's least expensive item on display is an ink-jet printer for
$80. The most expensive is a fully loaded desktop computer for $1,800.

Even so, Dell says its sales have been strong since the kiosk began a test
run in the spring.

"It's not unusual for our sales reps to have to juggle three and four
customers at a time," said Antoine Johnson, national sales manager for Dell
Direct Store. "We've been very pleased."

Selling a computer in an airport takes fast work. Passengers spend about 15
minutes with a sales rep, compared with about 45 minutes at a mall-based
kiosk.

"People don't get off a plane expecting to buy a computer," Mr. Johnson
said. 

But the kiosk caught the attention of San Antonio resident Warren Kaufman,
who was connecting through D/FW on his way to Los Angeles on vacation.

"I'm interested in a new computer, and my mom has a Dell," he said while
looking over one of several models on display. "If they have the right
answers and the right price, why not buy it here?"


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