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.
Sprint (NYSE: S) is a communications services company that creates more and better ways to connect its customers to the things they care about most. Sprint served more than 57 million connections as of March 31, 2015 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; leading no-contract brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Sprint has been named to the Dow Jones Sustainability Index (DJSI) North America for the past four years. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
This release includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan,” “will,” “providing guidance,” and similar expressions are intended to identify information that is not historical in nature. All statements that address operating performance, events, or developments that we expect or anticipate may occur in the future — including statements relating to the agreements with Dixons Carphone, as well as statements expressing general views about future operating results, brand distribution, and efficiencies of such transaction — are forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, the ability to operationalize the anticipated benefits from the transaction, including the creation of the joint venture, as well as anticipated efficiencies of the agreement. Sprint believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date when made. Sprint undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in Sprint Corporation’s Annual Report on Form 10-K for the period ended March 31, 2015. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.