Sprint Corp. S has tied up with Europe’s leading wireless retailer – Dixons Carphone. The agreement should give a further boost to Sprint’s plan of spurring a turnaround and revamping its business by adding new retail locations.
In the preliminary phase, Sprint is slated to work with Dixons Carphone’s Connected World Services (CWS) division, to construct and run about 20 new Sprint retail stores in select U.S. markets. CWS will bolster Sprint’s outlets with its retail expertise and proprietary understanding.
If all goes well with the initial phase, Sprint and Dixons Carphone plan to invest up to $32 million in a 50:50 joint venture to open and operate as many as 500 new Sprint-branded outlets across the U.S. Both the companies will assume even share and equally fund the start-up costs of the venture.
Notably, Dixons Carphone is acclaimed for its innovation in wireless retail sales. The association is thus in line with Sprint’s retail transformation plans.
In February, Sprint announced that it would open mini-shops in RadioShack's stores and is now set to occupy retail space in as many as 1,435 RadioShack stores. Notably, with the addition of the Sprint-RadioShack stores, Sprint has successfully expanded its total retail footprint to approximately 4,500 locations in the U.S.
Sprint has also launched a unique service, Direct 2 You, wherein a Sprint-trained expert will help customers set up a Sprint mobile device at any location the customer selects, at no additional cost.
Meanwhile, Sprint has also intensified the pricing war within the telecom industry with continuous launch of cost-effective voice and data plans.
We believe the deal with Dixons Carphone should further help the company increase its presence in the market, develop its distribution system, check customer churn and retain its competitive position among major wireless carriers in the U.S. like Verizon Communications VZ, AT&T, Inc. T and T-Mobile US TMUS.
Sprint currently carries a Zacks Rank #3 (Hold).
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