Sprint Corp (NYSE:S) is partnering with bankrupt electronics goods retailer RadioShack Corporation (OTCMKTS:RSHCQ) to open more than a thousand co-branded stores. The store creation initiative is expected to more than double the retail footprint of Sprint across the U.S.
Sprint Corp (NYSE:S) isn’t leaving anything to chance in an attempt to defend its position as the U.S. No. largest wireless carrier. The company is expanding its store location and has found a better deal to partner with the financially troubled RadioShack. Beyond having more store locations to meet and serve customers, Sprint will also be able to benefit from brand exposure through the co-branded stores agreement.
Sprint creating 3,500 jobs
Some 1,435 co-branded stores are expected to be opened under the partners of Sprint and RadioShack. The program is also expected to create about new 3,500 jobs. According to Sprint, the jobs it hopes to create through store collaboration with RadioShack will include both full-time and part-time positions.
By sharing location, Sprint Corp (NYSE:S) and RadioShack are expected to benefit from each other in the sense that they will be able to share customers. The co-branded stores will sell almost everything from the smartphones to various mobile plans offered by the carrier. The stores will also carry the typical electronic products you can expect from RadioShack.
Sprint Corp (NYSE:S)’s store partner, RadioShack, filed for bankruptcy about two months ago while revealing $1.39 billion in debts and $1.2 billion of assets as of November 1, 2014. General Wireless acquired some 1,743 stores previously owned by RadioShack following the bankruptcy filing. That means that Sprint will be a co-tenant in the co-branded stores.
Battle for supremacy
Sprint is facing growing competition from its smaller rival T-Mobile US Inc (NYSE:TMUS), which is angling to push it down in the pecking order to No. 4 from its current No. 3 position. Some analysts believe that T-Mobile may have added more subscribers in 1Q enough to place it ahead of Sprint.