Back in 2010 when Target launched full-service mobile phone centers operated by RadioShack in some of its stores, the deal was billed as a win-win. Now, just a couple of years later, RadioShack's interim CEO has let the world know that there appears to be only one winner in the Target Mobile initiative and his company is not it.
Dorvin Lively, who took over when Jim Gooch was dismissed by RadioShack's board last month, told analysts on the company's third quarter conference call that the chain was writing off $25 million on the Target Mobile joint venture and that it would walk away in April if a new deal could not be hammered out.
"If we can't make any money in that, we should get out of it," Mr. Lively said on the call.
RadioShack operates Target Mobile kiosks in 1,500 Target locations across the U.S. It is not the only technology company, however, that is currently partnering with Target. Both Apple (store-within-a-store) and Best Buy (Geek Squad technical support) are currently testing concepts inside a small number of Target stores.
- RadioShack Reports Financial Results for Third Quarter 2012 - RadioShack Corporation
- RadioShack discloses $47 million loss in third quarter - Fort Worth Star-Telegram
- As RadioShack's losses mount, it may stop running Target's mobile centers - The Dallas Morning News (sub. required)
- RadioShack reports dismal third-quarter results, may pull out of Target stores - The Dallas Morning News (sub. required)
- Target Announces Expansion of Target Mobile Centers in Target Stores - Target Corporation
- Best Buy Sending 'Agents' Into Target Stores - RetailWire