Dixons Carphone could open 500 stores in the US
Dixons Carphone, the UK retailer which was created through a merger last year, has announced that its Connected World Services (CWS) division is partnering with American telecoms company Sprint Corporation, to open and manage a significant number of Sprint-branded stores in the US. Sprint has nearly 60m customers.
Initially, the electronics specialist will supply mobile phone retail expertise and proprietary knowledge to Sprint who will open approximately 20 retail stores. If these stores prove to be successful, the parties will progress to a second phase which will involve CWS investing equally with Sprint in a joint venture to support rollout plans of up to 500 stores.
During the second phase, Dixons Carphone will invest up to $32m to obtain a 50% interest in the new venture, and this cash will be used by the business to fund the roll-out and operation of the stores. Dixons Carphone will also provide support across the whole of the Sprint estate as part of a wider know-how sharing arrangement.
Commenting on the transaction, Andrew Harrison, Dixons Carphone Deputy Group Chief Executive and CEO of the Connected World Services division, said:
“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. 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 partnership and will be looking to deliver innovation and outstanding customer service under the Sprint brand.”