This NY Times article reports on Poway, CA.-based computer maker Gateway Inc. announcement yesterday that it would close 188 retail stores and lay off 2,500 employees next week. Gateway now plans to sell products through third-party retail stores as well as directly to customers over its Web site. In connection with its recent purchase of eMachines, Gateway acquired longstanding relationships with national retailers like Best Buy, Costco, Circuit City and Wal-Mart. Gateway has been struggling in recent years to compete with the increasing power of Austin-based Dell Inc., whose direct sales strategy has made it the leader in the PC market. In 2003, Gateway reported a loss of $1.62 per share on revenue of $3.4 billion, and sales of Gateway PC’s dropped 24 percent over the year before. The company opened its first retail store in 1996 and at one time had more than 300 stores nationwide.