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Target will be starting mobile phone sales inside its stores. While most retail stores such as Target and Walmart and even Best Buy offer mobile phone sales, the way that Target is going to be selling mobile phones will be a bit different than others do.

Target will be outsourcing its mobile phone sales to Radio Shack. Because of this, Radio Shack will be opening up kiosks inside the store. Any consumer will be able to buy the same brands they can get other places. They will have T-Mobile, AT&T, and Verizon Wireless.

According to the article, you won’t be able to buy Sprint phones at the kiosks, but I can’t see that holding because Sprint has always been one of the main carriers that sold at Radio Shack stores.

This could be a good idea for smaller retailers; however Target is a pretty big store with a large retail footprint. Target has the ability to sell and the room to sell the phones and plans, but I suppose that they have felt as though this would be the best way to do it and would benefit everyone in the deal.

There wasn’t a lot of information released about the deal between Target and Radio Shack. However, an analyst at Wedbush Morgan Securities in Los Angeles, California said that Kiosk Operations (a subsidiary of Radio Shack that will be operating the kiosks inside the Target stores) is likely paying Target for the ability to operate In its stores. He said that it is likely for the company to pay between $30,000 and $40,000 per year for retail rent. It is likely that Kiosk Operations will also be paying Target a small amount of its sales, which is probably going to be less than 10 percent.

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Jeremy

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