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Sprint and RadioShack Sign Multi-Year Kiosk AgreementRadioShack to provide retail services for network of Sprint-branded kiosks (September 23, 2004)
RadioShack Corporation and Sprint on September 21 announced the two companies have reached a multi-year agreement to develop, deploy and operate Sprint-branded kiosks in approximately 500 of the nation's leading shopping malls. The parties plan to complete their roll-out over the next three years. This includes plans to open 90 Sprint Kiosks by Spring 2005 in markets including Texas, New Jersey, New York, Pennsylvania, Ohio, Virginia, Maryland, Oregon, Illinois, Georgia, Florida, Washington and California. The announcement comes after a successful 10-month test program involving 10 Sprint Kiosks in different malls across the country.
RadioShack and Sprint have been working together since 1996 when the two combined to offer Sprint PCS services at RadioShack stores through an innovative store-within-a-store retailing concept. Both companies agree the results of that union helped accelerate the adoption of CDMA wireless technology and wireless phone service across the country and positioned Sprint and RadioShack as leaders in the wireless marketplace.
"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, RadioShack's chairman and chief executive officer. "Wireless is a cornerstone of our business thanks in part 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."
"Consultative selling is a key practice in the wireless industry, and customers expect to be able to ask questions and get good answers," said Len Lauer, chief operating officer for Sprint and president of Sprint PCS. "RadioShack is known for its knowledgeable and engaging sales associates, which become a key asset to Sprint in the kiosk environment. We believe RadioShack's unique retail experience -- both in terms of number of stores and sales environment -- will ensure a successful roll-out of the Sprint Kiosk program."
According to the agreement, RadioShack will 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 will be responsible for all development, implementation, and maintenance for the kiosks and the day-to-day operation. Associates working at the Sprint-branded kiosks will be employees of RadioShack.
Through the kiosk program, RadioShack and Sprint intend to capture a greater share of the high-end, youth and pre-paid market through locating kiosks in malls and by including Virgin Mobile in the product line-up. The kiosks will be stocked with the full assortment of Sprint phones, including PDA and multi-media phones.
About RadioShack Corporation
Fort Worth, Texas-based RadioShack Corporation (NYSE:RSH) is the nation's most trusted consumer electronics specialty retailer of wireless communications, electronic parts, batteries and accessories as well as other digital technology products and services. With nearly 7,000 outlets nationwide, it is estimated that 94 percent of all Americans live or work within five minutes of a RadioShack store or dealer. The company's knowledgeable sales associates and brand position - "You've Got Questions. We've Got Answers." - support RadioShack's mission to demystify technology in every neighborhood in America. For more information on the company, visit the RadioShack Corporation Web site at www.RadioShackCorporation.com. For more information on RadioShack products and services, visit its e-commerce web site at www.RadioShack.com.
Sprint is a global integrated communications provider serving more than 26 million customers in over 100 countries. With approximately 65,000 employees worldwide and over $26 billion in annual revenues in 2003, Sprint is widely recognized for developing, engineering and deploying state-of-the-art network technologies, including the United States' first nationwide all-digital, fiber-optic network and an award-winning Tier 1 Internet backbone. Sprint provides local communications services in 39 states and the District of Columbia and operates the largest 100-percent digital, nationwide PCS wireless network in the United States. For more information, visit www.sprint.com.
Related Keywords:Sprint, RadioShack, Kiosk, Sprint PCS, wireless, wireless phone, Leonard Roberts, Len Lauer, Virgin Mobile, PDA,