Dell, which built itself into the world’s biggest maker of PCs by direct-selling to customers, is preparing to sell through retailers for the first time after ousting a key architect of the direct-only strategy.

The move is part of a significant reevaluation of the business, after a year in which Hewlett-Packard overtook it as the biggest PC-maker and Dell’s accounts became the subject of a federal inquiry.

News of the strategy shift came a day after Michael Dell, the company’s founder and chairman, finally caved in to investor pressure and ousted his close friend and protégé, Kevin Rollins, as chief executive. Mr Rollins was credited with returning Dell in 1993 to its roots as a direct seller of personal computers.

The dismissal of Mr Rollins comes less than three years after he succeeded Mr Dell as chief executive. Mr Dell, who stayed on as chairman, resumed the role of chief executive on Wednesday.

The Dell founder came under increasing investor pressure to dismiss Mr Rollins during a year in which Dell issued three profit warnings and had to recall 4.1 million laptop batteries because of safety concerns.

Analysts said that Mr Rollins lacked Mr Dell’s charisma and was less likely to walk around the floor chatting with employees. Mr Dell had consistently backed Mr Rollins and reportedly helped him to try softening his image within the firm.

In one bizarre instance he is said to have persuaded Mr Rollins to dress as a cowboy and play a fiddle at a company meeting. But after Dell’s aggressive cost-cutting campaign failed and the company made a lacklustre move into printers and consumer electronics, Mr Dell was forced to act.

Sources said yesterday that Dell’s preparations to sell through retail outlets were at an early stage but the company is understood to be working on several proposals, including one which in which its products would be sold through large US chains, such as Circuit City and Best Buy. Dell is also piloting a handful of standalone stores where customers can try its products but still must place orders through the direct channel.

The company, which has suffered a reputation for offering poor service, is also improving its interaction with customers, analysts said. It is thought to be stepping up its three-year search for a chief marketing officer to communicate the changes more effectively as it overhauls its senior management team and rethinks its approach to business.

The management changes include drafting in Steve Schuk-enbrock from Electronic Data Systems, the computer services company, to head Dell’s fledgeling services business.

UK computed

24% Dell’s share of the UK’s PC market in 2006

3.3% Fall in Dell’s UK sales last year

28% Growth of Hewlett-Packard UK sales in 2006

7.5% Growth of UK’s PC market in 2006

Source: Gartner

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