Dallas-Blockbuster Inc. and RadioShack Corp. announced a strategic alliance that will introduce a RadioShack store-within-a-store concept inside Blockbuster locations. The intent of the alliance is to create a full-service home entertainment destination within Blockbuster, while increasing RadioShack's reach to more consumers, more frequently and expanding their distribution network.
"This alliance brings Blockbuster, the leading home-entertainment brand, together with the leading brand in consumer electronics to benefit our customers by giving them neighborhood, one-stop shopping for the best selection of entertainment and electronic products and services," said John Antioco, Blockbuster CEO. "We're combining Blockbuster's domestic customer base of 48 million active member accounts and premiere store distribution network with RadioShack's high-quality products and expert electronic sales personnel. The results will be an extremely expanded home entertainment selection for our customers and entirely new revenue streams for Blockbuster with limited capital expenditures."
"Having a retail presence in as many as 5,000 Blockbuster stores nationwide opens up a new distribution channel for RadioShack, creating an enormous opportunity for accelerated growth," said Leonard Roberts, CEO of RadioShack Corp. "Our alliance with Blockbuster provides us access to more than 3 million Blockbuster customers each day, including more women and young adults, while using a capital-efficient way to expand our square footage and distribution network."
The companies will launch phase one of the concept in approximately 130 Blockbuster stores in four markets, and plan to follow that with a phase-two nationwide rollout of the company's remaining stores in 2002. Completion of phase one is expected by this summer and will include the Las Vegas; Norfolk, Virginia; Austin, Texas; and Tulsa, Oklahoma markets. -Business Wire