Wal_Mart and Dell?

In about 2 weeks, you may see something new in the electronics section of your local Wal-Mart store. Computer manufacturer Dell has entered into an agreement with Wal-Mart that will put its desktops in 3,400 of the chain's stores beginning June 10. They will retail for under $700.

Although exact details of the PCs have not been released, but both companies say the desktops will be built exclusively for sale at the world's largest retailers. The deal marks the first time in 15 years that Dell has not been involved directly in the sale of its machines. While the company recently began selling its PCs in retail, they were through company-owned outlets. It also once sold clearance machines through Costco.

Dell, it appears, may be changing its ways. A Dell spokesperson described the deal as "our first step" into global retail, possibly indicating that the company may be working on other deals, although it declined to talk about any possible deals. Wal-Mart will initially carry two different Dimension desktop models in the United States, Canada, and Puerto Rico. No details were given as to whether the company planned to eventually sell Dell laptops.

As for Wal-Mart, partnering with Dell is part of their strategy to remodel and expand the electronics section of its stores. The company is increasingly looking to top-name brands as a way to entice more affluent customers into its stores to help sustain its growth.