Mega-retailer Target announced it has ditched RadioShack in favor of Brightstar and MarketSource to manage and operate its Target Mobile in-store wireless shopping stations. The transition is expected to begin April 8. Brightstar, which is predominately known as a logistics provider to the wireless industry, will act as Target Mobile’s supply chain and point-of-activation technology provider, and MarketSource will be the in-store sales services partner.
The Target Mobile store-within-a-store concept is currently run through 1,500 Target retail locations.
Target’s deal with RadioShack was terminated after both sides were unable to come to a new agreement that RadioShack said “would be profitable to both companies. RadioShack noted that it began renegotiating the contract in October, with the caveat that if a new deal could not be reached it would be allowed to exit the venture.
RadioShack explained that the deal had called for the company to only handle postpaid activations and sales through the Target Mobile locations, and not prepaid or accessories. Prepaid has over the past year become the major sales driver for the wireless industry as many carriers have increasingly targeted the no-contract space with aggressive price plans and more feature-rich devices.
RadioShack has seen its fortunes ebb and flow over recent years in connection with its wireless ambitions. The company was initially a leader in third-party activations for the mobile space, with Sprint PCS reporting that nearly one-fourth of its gross customer additions in 2000 were conducted through RadioShack’s retail locations. The company at one point also operated retail kiosks for Sprint that included the carrier’s prepaid Virgin Mobile USA offering.
RadioShack announced last year plans to offer its own branded prepaid service through a partnership with Leap Wireless.
For Target, the move would seem to be an attempt to remain competitive with retail giant Walmart, which has become a force in the third-party wireless space. Walmart currently handles activations for most domestic wireless operators, as well as operates its own Family Mobile service and specific offerings from other operators.
Bored? Why not follow me on Twitter?
