Dell Inc. plans to open its own retail stores on a city-by-city basis and does not expect to sell its personal computers through shops like Best Buy Co., a senior executive said on Tuesday.

The No. 1 PC maker, whose sales are typically handled via the Web or on the telephone, opened its first store a few months ago, in Dallas.

Ro Parra, senior vice president of Dell's home and business group, said the store's performance was exceeding expectations, and the company planned to open a New York store early in 2007.

Parra noted that while Dell had other cities in mind, further expansion would depend on results at these stores.

We will consider more once we get the concept tight, once we prove out the model, he told a press gathering at Dell's technology day in New York.

Parra said the company would not seek to put its products in other big-box electronics retailers.

That's not us, he said. It is unlikely you will see our PCs in Best Buy.

Electronics Dell Best buy Retail