Sprint has their work cut out for them in 2016, with nothing short of a full turnabout necessary to get them over T-Mobile and back in the number three spot in the United States. Between network enhancements and densification, revamped marketing and a bigger focus on retail presence, that's exactly what they stand to accomplish, should everything go according to plan. To those ends, they announced today that they've decided to partner up with Dixons Carphone, the biggest mobile consumer tech vendor in Europe. The venture is set to yield 500 retail locations scattered across America that will be helped along by the international arm of Dixons Carphone, known as Connected World Services. This same department of Dixons Carphone was responsible for the creation of Best Buy Mobile and Geek Squad during a joint venture with Best Buy, showing their chops for retail innovation.
The duo launched a pilot program in a few select markets last year and saw much stronger sales, better customer satisfaction ratings and better overall performance on the retail front. The new venture will see the two companies splitting the startup costs of the stores down the middle, with each company having a 50 percent interest in the new stores. They will cooperate on the stores' operations and management, and share the profits. In essence, Dixons Carphone would be lending their cash stores and know-how to Sprint to increase their footprint in return for a 50 percent cut of the new stores' profits.
This deal comes on the heels of a deal with Mobile Leasing, LLC to help with device leasing costs, showing a return to form of sorts for Sprint's retail front. Sprint CEO Marcelo Claure spoke very highly of Dixons Carphone, saying that they had "seen incredible results" from the joint pilot program and that he was confident that an expansion of that partnership would yield even better results. On the other side of the coin, Dixons Carphone Deputy Group Chief Executive Andrew Harrison said that Sprint was doing a great job in their transformation and that Dixons Carphone would be "excited to play an even greater role in enhancing their retail experience,".