Dell to sell computers in 1,400 Staples stores

Dell Inc (DELL.O) said it would sell personal computers, printers, monitors and ink supplies in 1,400 Staples Inc (SPLS.O) stores in the United States, its latest move into retail after breaking from 23 years of selling directly to consumers.

Staples, the world's largest office supplies retailer, will start selling the Dell products in November. The agreement, which includes sales on Staples' Web site, brings the number of retail outlets carrying Dell products to more than 10,000, both companies said in a statement.

The deal widens Dell's expansion in retail after it began selling PCs through Wal-Mart Stores Inc (WMT.N) in North America in June. Since then, Dell has entered into agreements with retailers in Britain, Japan and China, among others.

There are communities of people that we have not reached, and we will continue to look at these options in the near term and long term, Michael Tatelman, Dell's vice president and general manager for consumer sales and marketing, said in an interview.

We're bringing the advantages of our direct model to shoppers whose busy lifestyles require them to have products available wherever they are and wherever they want to be, Tatelman added.

Dell, founded by Michael Dell in his university dorm room in 1984, grew to become the world's largest PC maker by selling machines directly to consumers and businesses via the phone or its Web site.

The company resisted analysts' and investors' calls to expand in retail until this year, after it lost the No. 1 PC market share spot to Hewlett-Packard Co (HPQ.N), which has been growing by selling notebook computers in retail stores, including Staples and Wal-Mart.

Dell shares were up 25 cents, or 0.9 percent, at $28.17 in early afternoon Nasdaq trading.