RadioShack Store-Within-A-Store Coming To Blockbuster Stores Nationwide <b></b>
Dallas-Blockbuster Inc. and RadioShack Corp. announced astrategic alliance that will introduce a RadioShackstore-within-a-store concept inside Blockbuster locations. Theintent of the alliance is to create a full-service homeentertainment destination within Blockbuster, while increasingRadioShack's reach to more consumers, more frequently andexpanding their distribution network.
"This alliance brings Blockbuster, the leadinghome-entertainment brand, together with the leading brand inconsumer electronics to benefit our customers by giving themneighborhood, one-stop shopping for the best selection ofentertainment and electronic products and services," said JohnAntioco, Blockbuster CEO. "We're combiningBlockbuster's domestic customer base of 48 million activemember accounts and premiere store distribution network withRadioShack's high-quality products and expert electronic salespersonnel. The results will be an extremely expanded homeentertainment selection for our customers and entirely new revenuestreams for Blockbuster with limited capitalexpenditures."
"Having a retail presence in as many as 5,000 Blockbusterstores nationwide opens up a new distribution channel forRadioShack, creating an enormous opportunity for acceleratedgrowth," said Leonard Roberts, CEO of RadioShack Corp."Our alliance with Blockbuster provides us access to more than3 million Blockbuster customers each day, including more women andyoung adults, while using a capital-efficient way to expand oursquare footage and distribution network."
The companies will launch phase one of the concept inapproximately 130 Blockbuster stores in four markets, and plan tofollow that with a phase-two nationwide rollout of thecompany's remaining stores in 2002. Completion of phase one isexpected by this summer and will include the Las Vegas; Norfolk,Virginia; Austin, Texas; and Tulsa, Oklahoma markets. -BusinessWire
