Radio Shack, Compaq pact is extended, Exclusive sales deal to run through 2004

Radio Shack and Compaq Computer Corp. say they like their exclusive marketing alliance so much, it's been extended three years beyond the 2001 expiration date.<br><br>The companies said sales of Compaq

Monday, April 24th 2000, 12:00 am

By: News On 6

Radio Shack and Compaq Computer Corp. say they like their exclusive marketing alliance so much, it's been extended three years beyond the 2001 expiration date.

The companies said sales of Compaq personal computers in the consumer electronics stores have exceeded expectations, prompting the extension of their agreement through 2004.

David Edmondson, chief operating officer, said PCs have consistently accounted for 10 percent of Radio Shack's sales, which have grown 46 percent over the last three years.

Compaq would not disclose how many units it has sold through Radio Shack since the alliance began in 1998.

Brian Dennison, vice president of U.S. consumer sales for Compaq, said selling products at Radio Shack does not interfere with Compaq's new emphasis on direct sales. Customers, for example, can buy online inside a Radio Shack at a Web-enabled kiosk.

"We recognize that a vast majority of consumers are conditioned to buying retail, so we have a multi-pronged approach," Mr. Dennison said.

David Goldstein, president of Channel Marketing Corp., described the relationship as "win-win" for both companies. He said customers, far from being skeptical of seeing only Compaq PCs at Radio Shack, like the focused service.

"Customers can be overwhelmed by the vast number of brands and selections in the superstores," Mr. Goldstein said. "They welcome the help from these two strong brands."

Radio Shack receives residual income from the relationship with Compaq, a strategy it has extended to other products, such as satellite television and cell phones.