Three days ago we heard rumors from sources that were supposedly close to the matter that Sprint was in talks with RadioShack that could result in a two primarily different outcomes. RadioShack being in a financial situation that would require bankruptcy filing after 11 quarters of continue loses, needed to do something. The information pointed to Sprint either buying up half the leases to RadioShack stores across the nation, or brokering a co-branding store deal on the same stores. Today the word is that the co-branding deal is official on 1,750 stores across the United States.
Sprint will officially occupy 1/3 of those 1,750 stores. RadioShack shall live on as is in those locations, but just offer an official Sprint retail store inside exclusively and sell their additional elctronic and accessory goods.. There is, however, some other changes that will take place. For instance, it sounds like the RadioShack branding will be around, but the Sprint branding will be most prevalent branding across the new co-branding deal. Makes sense with them putting up all the money.
“We’ve proven that our products and new offers drive traffic to stores, and this agreement would allow Sprint to grow branded distribution quickly and cost-effectively in prime locations,†said Sprint CEO Marcelo Claure. “Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other’s customers.â€
This is a pretty huge move for Sprint as they currently only have 1,100 retail locations of their own. This deal will more than double their physical sales footprint in a hurry. Well, after they get into those specific locations and take over the space. None of this is happening tomorrow and there is still the hurdle of getting the whole deal approved through the Delaware bankruptcy court. I don’t see there being any issues with it though.
Can we start calling it the SprintShack now, or should we wait a little longer?
Source: Sprint
