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Austin Lands First-Run Role for RadioShack, Blockbuster Alliance

AUSTIN-Thirty-seven Blockbuster stores in Austin are part of an initial 130-location premiere to put RadioShack kiosks into the video retailer's outlets. Coming soon: Blockbuster services in RadioShack stores. The alliance isn't expected to drive store closings.

By Connie Gore | Updated on February 27, 2001

AUSTIN-In a cross-marketing alliance, Blockbuster Inc. and RadioShack will be rolling out a store-within-a-store concept that premieres simultaneously in May at 37 Austin video stores.

The May rollout also calls for Ft. Worth-based RadioShack to set up shop in 39 Blockbuster’s in Las Vegas, 32 in Norfolk, VA and 26 in Tulsa. A second round of cities will be rolled out in first quarter 2002. The two-phased rollout involves more than 500 stores, with up to 300 coming on line this year. But the contract ultimately could put RadioShack into 5,000 US Blockbusters, including a now-developing program for Blockbuster’s 1,000 franchise operations, James Notarnicola, Blockbuster’s executive vice president and chief marketing officer, tells GlobeSt.com.

Dallas-based Blockbuster also is working on a plan to put some of its retail offerings into RadioShack stores, starting with gift cards. “But the centerpiece is the store-within-a-store in Blockbuster,” Notarnicola emphasizes.

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