Sprint Corp. and RadioShack Corp. reported a multi-year agreement to develop, deploy and operate Sprint-branded kiosks in about 500 shopping malls across the country following a 10-month test program involving 10 Sprint kiosks.
The new agreement calls for RadioShack to provide Sprint with a turn-key retail solution that leverages its own infrastructure in the areas of real estate, design and construction, distribution, merchandise selection, store operations, and hiring and training. RadioShack also will be responsible for all development, implementation and maintenance for the kiosks, as well as the daily operations. As such, RadioShack will employ associates working at the Sprint-branded locations.
A complete rollout of the kiosks is scheduled to take place during the next three years, including plans to open 90 kiosks by next spring in Texas, New Jersey, New York, Pennsylvania, Ohio, Virginia, Maryland, Oregon, Illinois, Georgia, Florida, Washington and California.
Sprint said it expects the kiosk program will include an assortment of handsets, smart phones and multimedia devices targeted at the high-end market, as well as Virgin Mobile USA L.L.C.’s prepaid offering targeting the youth and prepaid markets.
“RadioShack is known for its knowledgeable and engaging sales associates, which become a key asset to Sprint in the kiosk environment,” explained Len Lauer, president of Sprint PCS. “We believe RadioShack’s unique retail experience-both in terms of number of stores and sales environment-will ensure a successful rollout of the Sprint Kiosk program.”
Sprint PCS has been offering wireless services through RadioShack retail locations since 1996 through a store-within-a-store model and has been a significant contributor to Sprint PCS’ customer additions. Indeed, some analysts estimate as many as one-fourth of Sprint PCS gross customer additions come from RadioShack outlets.
“This expanded kiosk program will accelerate our retail services business, which will be an integral part of our growth strategy for the coming years,” said Leonard Roberts, chairman and chief executive officer of RadioShack. “Wireless is a cornerstone of our business thanks to our great relationship with Sprint over the past eight years. The Sprint Kiosk test proves we can reach additional customers with minimal cannibalization to our existing wireless business.”
In a separate announcement, Verizon Wireless, which also offers service through RadioShack locations, said it will begin selling phones and services through more than 600 Best Buy stores beginning this month. Verizon Wireless will reportedly replace AT&T Wireless Services Inc. in Best Buy’s wireless line-up, which also includes Cingular, Sprint PCS and T-Mobile USA Inc.
Circuit City announced late last month that it would begin exclusively offering Verizon Wireless products and services through a store-within-a-store model in more than 570 retail locations across the country. As part of that deal, Circuit City is dropping T-Mobile USA products and services. Circuit City noted that Verizon Wireless would operate the locations and be responsible for the employees, inventory, displays and signage.
