The company will continue its direct-sales strategy via its Web site, www.gateway.com, and phone orders.

The big mail-order personal computer marketer opened its first two 8,000-sf stores in the Twin Cities at 2845 Fairview Ave. in Roseville and at Southtown Center in Bloomington. The retail strategy had several goals: to enhance Gateway's ``friendly cow" brand image, to win over customers who want to try before they buy and provide service centers for Gateway customers.

Other direct marketers of PCs, including two former Twin Cities firms, Northgate Computer and Zeos International, have been unsuccessful in their attempts to build a retail business as well.

Gateway also will be seeking wider retail distribution of its products in the US and abroad, according to a statement. About 2,500 retail positions will be eliminated at the whole chain as a result of the store closings.

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