Gateway announced Thursday it will be closing all of its Gateway Country retail stores in the United States. 2,500 people will be laid off by Gateway because of this, that’s 40% of its staff from this ever shrinking company.
It is ironic that just this week Sony announced that it will create its own branded store to sell a lot of its consumer electronic products just as Apple does. So while Sony is ramping up to bring its brand label closer to the consumer, Gateway is retreating and trying to figure out a better way to sell its computers. With the acquisition of EMachines last month, it is expected that Gateway will take the same approach EMachines always took, and that is selling computers through typical large retail channels such as Circuit City and Best Buy. Gateway is currently in talks with Best Buy and the rumor is that the two companies will come to an agreement for Best Buy to become a major seller of Gateway computers.