Jun 9, 2017

Dixons Carphone walks away from Sprint joint venture in the US

Dixons Carphone is to end its US joint venture with mobile network Sprint after less than two years because of the "Changing US mobile market landscape", the phone and gadget retailer announced on Friday. Dixons Carphone entered into an agreement with Sprint in July 2015 to open and manage a number of Sprint-branded stores in the US as part of an ambitious expansion plan. After the experiment proved a success, the pair said in January 2016 that they would expand the tie-up to 500 stores under the Sprint brand at an expected cost to Dixons Carphone of just $32m. But following a review by Sprint of its distribution strategy, the retailer and telecoms group have agreed Dixons will sell its 50 per cent stake in the joint venture to Sprint for an undisclosed amount. The sale marks the second time in six years part of the Dixons Carphone group has abandoned a US joint venture. In 2011 Carphone Warehouse, which subsequently merged with electronics retailer Dixons to form Dixons Carphone, sold its stake in a joint venture with retailer Best Buy to its partner for more than $1bn. The Best Buy exit came after a period of strong growth in the business, which offered advice and sales to Best Buy customers in-store, as well as in some standalone outlets.

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