Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
RadioShack Operates Wireless Kiosks in 542 Sam's Clubs
FORT WORTH, Texas -- RadioShack Corp. is now operating wireless kiosks nationwide in 542 Sam's Club locations, a division of Wal-Mart Stores Inc., officials announced today . During calendar year 2003, wireless sales at Sam's Club exceeded $150 million.The ability to sell through Sam's Club was made possible by RadioShack's acquisition of certain assets previously owned by privately-held Arizona-based Wireless Retail Inc. RadioShack purchased fixtures, information systems, and training assets from Wireless Retail which had been operating the wireless business in Sam's Club, officials said. The Wireless Retail employees who have been working at Sam's Club are now employees of RadioShack."We believe that partnering with Sam's Club provides significant financial opportunity for RadioShack," said Leonard Roberts, chairman and chief executive officer. "By adding another sales channel to our retail services portfolio, we are well positioned to drive long-term shareholder value."Sprint PCS, T-Mobile and Cingular Wireless phones and service are being offered through the kiosks as well as a wide assortment of accessories.The impact from the transactions will reduce RadioShack's 2004 free cash flow as a result of initial ramp-up in working capital. RadioShack officials anticipate that the combined impact to capital expenditures, inventory, and receivables will result in 2004 year-end free cash flow of approximately $30 million to $40 million. Projections now call for sales growth of 6% to 8% and earnings per share growth of 19% to 21% next year, officials said.Visit RadioShack Corp.: www.radioshack.com"