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Target, RadioShack call off mobile phone deal

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Minneapolis-based Target Corp. and Fort Worth, Texas-based RadioShack Corp. are ending their mobile phone partnership in April after the two retailers failed to reach a new agreement, the Pioneer Press reports. RadioShack has been operating mobile phone kiosks at 1,500 Target stores nationwide since 2010, but has struggled to make money from the deal.

In October, the consumer electronics chain said the company was losing money and was trying to renegotiate its contract terms with Target, the Star-Telegram reports. RadioShack did not manage the prepaid mobility business or the wider range of accessories offered in Target stores.

"In order for RadioShack to have continued this relationship, we needed to establish a new agreement that would be financially appealing to both companies," Telvin Jeffries, RadioShack executive vice president, chief human resources officer, and general manager of retail services, said in a news release. "Ultimately, we amicably agreed to dissolve the relationship."

Target announced it has selected two new service partners, wireless distributor Brightstar and marketing services company MarketSource, to take over the operations of Target Mobile.

“Collaborating with Brightstar and MarketSource will further enhance Target’s position in the wireless retail marketplace,” John Butcher, vice president, Electronics at Target, said in a news release. “These partnerships move the business forward and ensure our guests will receive the latest products and services coupled with Target’s exceptional value and best-in-class shopping experience.”

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