RadioShack Announces Southeast Asia Expansion With Berjaya Master Agreement
KUALA LUMPUR, Malaysia, and FORT WORTH, Texas, March 22, 2012 // PRNewswire // -- RadioShack Corp., a leading national retailer of innovative mobile and technology products, services and accessories, and Berjaya Retail Berhad, a Malaysian retail group with diverse franchised brands, have signed a master development agreement that substantially expands RadioShack's global footprint across 10 Southeast Asian countries.
Under the long-term agreement, Berjaya Retail (Cayman) Limited as franchise developer is expected to open at least 1,000 franchise locations across the Association of Southeast Asia Nations within the first 10 years. Its subsidiary in Malaysia, Berjaya RS Sdn. Bhd., expects to open its first RadioShack locations later this year in Kuala Lumpur. Berjaya Retail Berhad is owned by the major shareholder of Berjaya Corporation, which reported combined revenues of $7.06 billion (USD) across its holdings in fiscal year 2011.
The Berjaya relationship represents RadioShack's single largest franchise expansion to date and offers the potential to nearly double the number of RadioShack's total dealer-franchise locations worldwide, eventually increasing the Company's global footprint to 39 countries.
"Our franchising objective is to offer the RadioShack small-format consumer electronics retailing experience internationally in association with local experts. Based on its experience with multiple U.S. and international brands, we believe that Berjaya will represent RadioShack in Southeast Asia with the same high standards. Berjaya's depth of retailing experience will guarantee a quality customer experience as well as the relationships and expertise that are necessary to select high-quality, high-visibility and high-traffic locations in this growing region," said Martin B. Amschler, vice president of franchise for RadioShack Corp., based in Fort Worth, Texas.
"The RadioShack brand will complement our other retail successes not only by widening our product range, but also in terms of fulfilling our aim to deliver greater convenience to customers. Moreover, it affords us the opportunity to expose the market to a growing lifestyle trend in electronics and gadgets whereby accessories and IT peripherals are an integral part of modern urban life," said Ms. Yau Su Peng, Chief Operating Officer of Berjaya RS Sdn. Bhd., which is based in Kuala Lumpur.
Berjaya Retail Berhad operates the 7-Eleven and Singer brands that have a combined network of 2,000 stores. It is owned by Tan Sri Vincent Tan Chee Yioun, who is the major shareholder of Berjaya Corporation. Berjaya's diversified holdings include food-service franchises; retailing concepts in consumer packaged goods, convenience, home entertainment, durable goods and bookstores; and a broad range of other holdings and investments.
RadioShack offers master franchisees a range of modular, flexible approaches to retailing: stand-alone, mall-based units or strip-center units, leased or built; kiosks; shop-in-shop units; sale or distribution of exclusive private brands in consumer electronics; and facilitated access to leading global brands and manufacturers. The companies have agreed not to disclose other financial terms of the agreement.
"With a history that traces back more than 90 years, RadioShack is one of the most enduring and identifiable retail brands in consumer electronics today," Mr. Amschler said. "We are continuing to explore and cultivate relationships with qualified candidates to introduce RadioShack's small-format electronics experience in other global regions."
In the same vein, Berjaya RS Sdn. Bhd. is on the lookout for suitable candidates, whether corporates or individuals, to become sub-franchisees in Malaysia and the region. Ms. Yau also added that Berjaya RS Sdn. Bhd. expects to offer ample employment opportunities as they roll out the stores within Malaysia.
For more information about global franchising opportunities with RadioShack, please see franchiseradioshack.com for contact details and more information.
About RadioShack Corporation
RadioShack (NYSE: RSH) is a leading national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack offers consumers a targeted assortment of wireless phones and other electronic products and services from leading national brands, exclusive private brands and major wireless carriers, all within a comfortable and convenient shopping environment. RadioShack employs approximately 34,000 people globally, including a team of friendly and helpful sales experts who have been recognized for delivering the best customer service in the wireless industry. RadioShack's retail network includes approximately 4,700 company-operated stores in the United States and Mexico, 1,500 wireless phone centers in the United States, and more than 1,100 dealer and franchise locations worldwide. For more information on RadioShack Corporation, please visit www.radioshackcorporation.com; to purchase items online, please visit www.radioshack.com. RadioShack® and The Shack® are registered trademarks licensed by RadioShack Corporation.
About Berjaya Retail
Berjaya Retail was incorporated in Malaysia on 8 June 2009 under the Companies Act of 1965 as a private limited company under the name Berjaya Retail Sdn Bhd. On 29 September 2009, Berjaya Retail was converted into a public limited company, principally involved in the following businesses: operation of a chain of convenience stores via the 7-Eleven Group; and marketing and direct selling of consumer durables with installment option schemes via the Singer Group. Berjaya Retail was listed on the Main Market of Bursa Malaysia Securities Berhad on 16 August 2010 and subsequently delisted on 3 May 2011, now operating as a private entity.
SOURCE RadioShack Corporation
Berjaya RS Sdn. Bhd.
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