Best Buy deals to include Verizon and AT&T specific presence in 250 locations by year end
Telecom operators are on a retail expansion kick, with the latest involving Verizon Wireless and AT&T scoring deals with big-box retailer Best Buy. The moves follows similar retail expansion from Sprint and a move by Apple to exert greater control over the iPhone buying experience.
Verizon Wireless said its deal with Best Buy will include the installation of its Verizon Experience concepts to 250 Best Buy locations. The Verizon Experience store-within-a-store are set to be staffed by “highly trained” Best Buy employees with specific knowledge of Verizon Wireless products and services. The agreement will see the concept stores installed in 100 Best Buy locations by the end of the month on its way to 250 locations by year end and is said to not impact Verizon Wireless’ current presence in Best Buy stores.
Best Buy and Verizon Wireless first teamed up on a retail collaboration in 2000 shortly after the mobile operator was formed.
Verizon Wireless had previously used the store-within-a-store concept at more than 570 Circuit City retail locations in a move that pushed out T-Mobile USA from those stores. That partnership eventually dissolved following Circuit City going out of business.
AT&T’s deal with Best Buy is also set to include up to 250 retail locations by year end, but looks to include a broader set of the telecom operators services. AT&T said that in addition to its wireless products and services, it plans to include home automation and security products from its Digital Life platform as well as the eventual inclusion of its recently acquired DirecTV services.
Similar to Verizon, AT&T said its agreement includes specifically trained Best Buy employees.
The expanded retail partnerships comes on the heels of Apple’s announced plans to offer unlocked iPhone devices through a monthly installment plan via its Apple Store locations. Analysts have noted the move would seem to further distance Apple from the traditional carrier distribution channels and could put pressure on iPhone device sales by mobile operators.
“If Apple is successful with its own lease offering, it could make it easier for carriers to switch networks,” noted Macquarie Securities analyst Kevin Smithen, in a research note. “This could benefit the challengers at the expense of the incumbents in our view, but churn may increase for everyone.”
Best Buy recently partnered with Sprint on a number of retail initiatives, including the launch of a two-line service plan and a Best Buy branded mobile service.
Sprint recently began converting more than 1,400 RadioShack locations into carrier-branded stores in a move that more than doubles the carrier’s branded retail locations. As part of the move, Sprint said it plans to add nearly 3,500 new full- and part-time jobs.
“Customers value the ability to walk into a neighborhood Sprint store near where they live and work,” explained Sprint CEO Marcelo Claure. “With more stores, and including Boost and Virgin Mobile, we’re providing additional shopping opportunities and making it easier and more convenient for consumers to do business with us.”
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