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Microsoft is embarking on a major distribution drive to sell its

software packages in clothing retailers such as Marks & Spencer, petrol

stations, general grocers and supermarkets. The initiative looks likely

to anger specialist PC retailers Dixons and Comet, which currently sell

the vast majority of Microsoft products.

Microsoft has appointed EMS, the IT and consumer electronics field

marketing specialist, to co-ordinate the software giant’s march into the

broader retail market. EMS’s other clients include Compaq Computers and

Apple.

The agency has already set up dedicated booths in Dixons, PC World,

Currys and Comet to sell Microsoft software products.

Dale Borland, director of the consumer business unit at Microsoft, said:

’We want to supply products to the right people, at the right places and

for the right prices. If the consumer wishes to purchase a product from

the supermarket or clothing retailer then we will be there.’

Borland said that within the next year consumers are likely to see

Microsoft packages being sold in new outlets. Discussions have taken

place with Marks & Spencer, Tesco and Sainsbury’s.

Borland said: ’These retailers are deciding their strategy for the 21st

century, and looking at where they can make money.’

A spokeswoman at Marks & Spencer said: ’We work closely with Microsoft

as a supplier and are working with them on a series of projects. Any new

initiatives are between us and Microsoft.’

The move reflects the recent growth in consumer demand for

computers.

More than 25% of UK households own an internet-capable PC, up from 20%

last year. By 2002 Datamonitor estimates that 45% of homes will have a

PC.