Electronics retailer GameStop closed on acquisition of trio of AT&T authorized retailers, pushing footprint to more than 1,400 locations
The relationship between telecom giant AT&T and electronics retailer GameStop grew tighter this week as GameStop completed the acquisition of three national AT&T authorized retailers – Cellular World, Midwest Cellular and Red Skye Wireless.
The transactions added 507 stores to GameStop’s portfolio, with the retailer claiming to now be AT&T largest authorized retailer with 1,421 locations. The electronics outlet also claims to be the largest retail distributor for AT&T Mobility’s Cricket Wireless prepaid brand with 3,400 locations, with expectations of a financial payoff from the investments.
“Today’s announcement showcases the strength of our relationship with AT&T and fortifies our diversification efforts,” said GameStop CEO Paul Raines. “With the continued investments in our technology brands business, we are on track to achieve our goal of generating $200 million of operating earnings in this growing segment by the end of 2019.”
Across its operations, GameStop counts more than 7,000 stores in 14 countries. Its aforementioned technology brands business includes 74 Simply Mac stores that sell Apple products, and 1,421 Spring Mobile stores that operate as AT&T authorized retailers selling the telecom operator’s range of products.
GameStop’s expansion with Cricket Wireless was announced earlier this year, and included the addition of a “dedicated Cricket Consultant” located at the stores who is trained on all things related to the service. The expanded distribution follows the initial deal between the two entities signed in 2014, which called for Cricket products and services to be offered through 2,800 GameStop locations.
AT&T Mobility in April announced a distribution deal for the prepaid brand at nearly 2,000 Aaron’s retail outlets, pushing its total presence to more than 12,000 retail locations nationwide.
Sprint has moved on a similar retail expansion, announcing last year plans to take over approximately 1,440 RadioShack locations in a move to expand its distribution footprint. The outlets are set to sell Sprint branded services as well as those of its prepaid brands Boost Mobile and Virgin Mobile.
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