The days of being able to waltz into a Target and buy a smartphone with contract are nearing their end. RadioShack announced earlier today that it and Target reached an agreement to end their partnership, and that on April 8 Target Mobile will be no more. The reason for the dissolved partnership is cited as being financial in nature.
According to RadioShack, the company had entered re-negotiations of its partnership with Target for a change in terms that would be profitable for both of them. At the same time as the re-negotiations started, RadioShack also moved its termination notice into play, which would let it bail out of the partnership if the two companies couldn't come to a new agreement.
The termination of its partnership will affect 1,500 Target stores, all of which currently offer Target Mobile. Under the mobile service, RadioShack was granted access to Target's mobility business. Ultimately, an agreeable change in the partnership's terms could not be reached, and so the two companies decided to part ways with no ill will on either side.
RadioShack's Executive Vice President, Chief Human Resources, and General Manager of Retail Services Telvin Jeffries offered this statement. "In order for RadioShack to have continued this relationship, we needed to establish a new agreement that would be financially appealing to both companies. Ultimately, we amicably agreed to dissolve the relationship."