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Verizon, RadioShack strike deal for store-within-a-store sales

Customers looking for Verizon Wireless service will now have an additional 4,400 outlets to chose from following last week’s announcement with RadioShack Corp. to house Verizon Wireless stores-within-a-store in RadioShack locations across the country. Verizon Wireless will join Sprint PCS, which signed a deal with RadioShack in 1996, in many of the outlets.

The Verizon Wireless deal, originally announced last August, will provide a retail outlet for Verizon Wireless products in all of RadioShack’s corporate owned stores, and any independent location wishing to sell the services. The stores-within-a-store will feature wireless phones, calling plans, Mobile Web services, Mobile Messenger and phone accessories.

“We think it will provide easier access for our customers to our products,” said Brenda Raney, spokeswoman for Verizon Wireless.

RadioShack claims 94 percent of all Americans live or work within 5 minutes of a RadioShack location.

“We’re building on their reputation,” Raney added. “They have stores in all of our major markets.”

While Verizon Wireless currently employs branded retail outlets in most of its markets, the carrier noted the RadioShack agreement should not be viewed as competition for those stores.

“It is more complementary,” Raney explained. “You may find some promotions that RadioShack may do that may be different from the retail outlets, but pricing plans will all be the same.”

During the next two months, RadioShack outlets selling Verizon Wireless services will offer 2,000 free weekend airtime minutes on National SingleRate plans starting at $35 per month. RadioShack is also offering a $30 gift certificate to customers who purchase selected handsets.

Sprint PCS is in the middle of a 10-year deal with RadioShack, giving the largest PCS operator 15 percent of all RadioShack floor space dedicated to Sprint PCS products and services. The agreement originally forbid RadioShack from selling non-Sprint PCS services in any market where the operator held licenses, though it could continue relationships with cellular carriers. But, with the Verizon Wireless agreement, the restriction no longer applies.

According to Sprint PCS, 24 percent of its gross additions last year were through RadioShack locations, compared with 28 percent for its Sprint PCS stores and kiosks and 25 percent for third-party national and local retailers.

“We have had a lot of success in RadioShack stores and it has been a strong sales outlet for us,” said Jennifer Walsh, group manager public relations for Sprint PCS. “This is a successful channel.”

Walsh said Sprint PCS was not concerned about any loss of sales due to Verizon Wireless being sold in the same RadioShack locations since the carrier faces competition in most of the locations with at least one other cellular operator.

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