Target Corp. is making its boldest move yet into the competitive consumer electronics market, announcing a series of steps aimed at boosting sales and enhancing customer service.
The Minneapolis-based retailer said Wednesday it is joining with RadioShack to add mobile phone centers in about 850 of its 1,743 stores by year's end, with a nationwide rollout expected by the middle of next year. The program began as a pilot last year in about 100 Target stores.
RadioShack will operate and staff the Target Mobile centers, which offer wireless phones and accessories plus service plans from such carriers as Verizon, T-Mobile and AT&T.
RadioShack has provided a similar service in Sam's Club, a division of Wal-Mart Stores Inc., since 2004. That contract ends on March 31, 2011, and Wal-Mart has the option of taking over the kiosks at that time.
Target's mobile centers also will coordinate a new trade-in program, which launched Tuesday in Northern California. Customers can trade in a range of electronics -- including smart phones, MP3 players, cell phones and video games -- for store credit. The new in-store exchange does not replace Target's existing online recycling program, where consumers can trade in used electronics for gift cards.
The retailer also has established a free hot line for questions about any Target electronics purchases such as televisions, cameras and video consoles. The number (1-877-myTGTtech or 1-877-698-4883) can be used to troubleshoot problems and get warranty information.
The battleground for consumer electronics has become increasingly competitive and fragmented.
Richfield-based Best Buy Co. Inc. is the nation's largest consumer electronics retailer. But discounters such as Wal-Mart, Costco and Target have gotten into the game in recent years, along with bookstores and mom-and-pop specialty stores.
The consumer electronics industry is forecast to grow 3 percent over 2009, with revenue of about $179 billion this year, according to the Consumer Electronics Association. The boost will come largely from innovations such as tablet computers and 3D displays, the industry group said.
RadioShack Corp. has been the subject of takeover rumors since spring. It operates about 4,500 stores, many in regional malls or strip centers. Best Buy has been a rumored suitor, but the company has declined to comment on speculation.
Jackie Crosby • 612-673-7335