by Christopher Freeburn | January 15, 2013 9:47 am
The mobile phone partnership between electronics chain RadioShack (NYSE:RSH) and big-box discounter Target (NYSE:TGT) will soon be over.
On Monday, RadioShack announced that the two companies had failed to come to terms on a new agreement to extend its operation of Target’s mobile device shops. Sales service provider MarketSource and wireless distributor Brightstar will replace RadioShack at Target Mobile shops in April, Reuters noted.
Investors liked the news, sending shares of RadioShack up about 2% in early Tuesday trading, while Target slipped fractionally.
The shops, dubbed “Target Mobile,” are located in 1,500 Target stores around the country. However, while RadioShack handled the sale of mobile phones, it didn’t control sales of phone accessories, which produce higher profits.
In October, RadioShack posted a $47 million third-quarter loss, significantly worse than most analysts had expected.
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