Sprint will open 20 new US stores in partnership with Europe’s Dixons Carphone
Sprint has been in the headlines recently, with the news that its CEO, Marcelo Claure, is paid handsomely, that the carrier’s unlimited All-In plan launched with some limits after all. Sprint did get some brownie points for responding swiftly to the video streaming cap, removing the measly 600kbps limit, albeit by slipping in that streaming traffic would be managed when the network became congested. Now, it seems that Sprint is looking at re-invigorating its retail stores strategy by partnering up with Dixon’s Carphone to increase the number of its physical stores.
Sprint will work with Dixon’s Carphone Connected World Services (CWS) division on a pilot program that will see 20 new Sprint stores opened in the States. While Sprint will own and staff the stores, CWS will manage the nitty-gritty of sales strategies and best practice, leveraging its experience of selling handsets in European markets. In essence, the new stores will be similar to current Sprint branded 3rd-party stores. As mentioned, this is a pilot program, which, if successful, will see more CWS managed Sprint stores opening around the U.S. Both companies will fund the start-up costs of the pilot program equally, with 50 percent ownership interest.
“Sprint is going to offer customers a greatly enhanced experience in buying wireless products and services,” said Sprint CEO Marcelo Claure. “We are partnering with the world’s leading wireless retailer to improve the customer experience in our stores. Dixons Carphone has the expertise and capabilities to accelerate this important part of our transformation journey.”
Sprint has been aggressively expanding its physical presence in stores, most recently by opening up outlets in 1,435 RadioShack locations.
Full Press Release:
Sprint Announces Retail Agreement with Dixons Carphone – Europe’s Leading Wireless Retailer
Dixons Carphone to work with Sprint on a pilot to build and operate approximately 20 new Sprint retail stores
OVERLAND PARK, Kan. (BUSINESS WIRE), July 02, 2015 – Sprint (NYSE:S) and Dixons Carphone today announced a commercial relationship that pairs Sprint with a premier European consumer electronics retailer renowned for innovation in wireless retail sales. The relationship is expected to accelerate Sprint’s retail transformation, and is the latest inventive move to grow its number of retail stores.
As part of the arrangement, in coming months Sprint will work closely with Dixons Carphone Connected World Services (CWS) division on a pilot program to build and operate about 20 new Sprint stores in select U.S. markets. These Sprint stores will operate similarly to the third-party retailers who operate Sprint-branded wireless stores across the U.S. Sprint will own and staff the stores while CWS will manage them. CWS will also apply its expertise and best practices across all of Sprint’s sales channels.
Dixons Carphone is Europe’s leading specialist electrical and telecommunications retailer and services company and is recognized as a global retail innovator with world-class retail expertise. In a former joint venture with Best Buy, the company helped launch Best Buy Mobile.
This agreement is the latest in Sprint’s strategy to expand its distribution and provide shoppers with a better customer experience. Earlier this year, Sprint quickly and cost-effectively doubled the number of corporate-owned stores by opening Sprint at RadioShack in 1,435 locations, which are currently undergoing renovation. Sprint has also launched Direct 2 You, a one-of-a-kind service that brings a personalized sales experience directly to customers whenever and wherever they want – for free.
“Sprint is going to offer customers a greatly enhanced experience in buying wireless products and services,” said Sprint CEO Marcelo Claure. “We are partnering with the world’s leading wireless retailer to improve the customer experience in our stores. Dixons Carphone has the expertise and capabilities to accelerate this important part of our transformation journey.”
“We are delighted to be working with Sprint and to be a part of a transformation in their business that is already making impressive headway,” said Andrew Harrison, Dixons Carphone Deputy Group Chief Executive and CEO of CWS. “This is a very exciting venture for us, and is a significant step in growing our CWS business in the US. We bring specialist knowledge and skills to this relationship and will be looking to deliver innovation and outstanding customer service under the Sprint brand.”
If the pilot stores prove to be successful Sprint and Dixons Carphone will establish a joint venture to open and operate a substantial number of new Sprint-branded stores across the U.S. The two companies will equally fund the start-up costs of the joint venture and each will initially have 50 percent ownership interest.
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