Gateway Closes Barn Doors on 27 Stores

PC vendor Gateway announced today the closure of 27 of its Gateway Country stores in the United States, amid efforts to cut costs. That number represents about 8 percent of the company's stores.

Gateway says it closed the retail-PC stores Monday, but left some open to complete PC repairs and consumer-training classes, says Brad Williams, Gateway spokesman.

The company closed stores in numerous geographic areas. "They are spread throughout the country," Williams says.

Gateway first announced plans to close approximately 30 stores to cut costs during an analyst meeting last month.

Gateway plans to transfer a majority of the 540 employees from the closed stores to other locations, Williams says. The company closed stores that were located near other Gateway Country stores, he says.

California saw the most closings, with nine stores shuttering their doors. The company closed three stores in Virginia; two in Florida, Illinois, New Jersey, New York, and Texas; and one each in Georgia, Indiana, Oregon, Tennessee, and Utah.

Gateway will now have about 300 stores in the United States. The company also plans to review the status of the approximate 50 Gateway Country stores outside the United States, Williams says.

Gateway first opened a Gateway Country store in North Carolina in 1996. The stores offer hands-on demonstrations of PCs, software, services, and training. Customers can order their PCs through the store for delivery at their home. Last Christmas, to spur sales, Gateway stocked some stores with ready-to-buy PCs.

Like many tech-related companies, Gateway's early 2001 financial results were mixed, and in January the company announced it would cut 10 percent of its workforce. Gateway also has taken measures to simplify its product lines to cut costs.