RadioShack to Open Small Stores in China Joint Venture

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RadioShack Corp is taking a minority stake in a joint venture that will open small-format stores in greater China, with the first location set to open in Shanghai next month.

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RadioShack will take a 49 percent stake in the venture while Cybermart, an affiliate of Hon Hai Precision Industry Co Ltd, will own 51 percent. They plan to operate stores in mainland China, as well as Taiwan, Hong Kong and Macau under the RadioShack name.

RadioShack will contribute $2.94 million upfront, and the two partners may contribute another $34 million over the next three years.

RadioShack, which gets the bulk of its revenue in North America, said in its most recent annual report it planned to expand internationally as growth rates could be greater.

Like larger rival Best Buy Co Inc, RadioShack has struggled to attract U.S. shoppers who increasingly buy their gadgets online.

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In 2011, RadioShack's sales at stores open at least a year fell 2.2 percent, and declined in the first quarter of 2012.