RadioShack to Close About 500 Stores Within Months

[bananas]

Source: Wall Street Journal

On Sunday, RadioShack Corp. RSH -4.84% used comedy, in the form of a Super Bowl ad, to show its stores being dismantled and rebuilt. On Tuesday, the news broke that some of the stores will be dismantled, period.

According to people familiar with the matter, RadioShack is planning to close around 500 locations in the coming months. It isn't clear which of RadioShack's roughly 4,300 stores will be closed and when exactly the closings will begin. The people familiar with the matter noted that it isn't unusual for companies to close stores when going through a restructuring.

The news was a cold dose of reality after the upbeat feeling generated by the commercial, which was widely considered one of the best that aired during the big game Sunday night. In the commercial, RadioShack poked fun at its outdated image by bringing in a crowd of throwback characters from the 1980s, including Hulk Hogan, Erik Estrada and Alf, who purport to want their store back and proceed to tear out the shelves and haul away products.

<snip>

The Fort Worth, Texas, retail chain has been working on transforming its image from an old-school electronics store into a destination for shoppers looking for entertainment gadgets, like headphones and smartphone cases. In October, RadioShack secured $835 million in loans to refinance about $625 million of debt. Those funds, from a group led by GE Capital, also freed up cash for RadioShack's overhaul.

<snip>

Read more: http://online.wsj.com/news/article_email/SB10001424052702303442704579362870830018510-lMyQjAxMTA0MDAwNDEwNDQyWj

---

Via http://slickdeals.net/news/6675276/radioshack-to-close-500-stores-in-coming-months

[Warpy]

1. Shit. There goes my computer emergency bits and pieces store.

They were only 5 minutes away, too.

[Crash2Parties]

2. And they were just starting to find their way again...

I've seen a lot of broken phone-screen and dead tablet traffic in the stores, plus they've started building up their line of arduino-type (think Make: crowd) merchandise. Of course, they have also been swapping out items faster than they can print shelf tags, sometimes it seems new items are only given a month or two before being yanked (while others are held onto for years past their obsolescence). It'd help with the hobbyists if they'd at least carry a few decent basics like a temp-controlled soldering iron instead of some of the garbage they've replaced them with. I wish them luck, we've lost all but one independent electronics / computer shop in the county.

[mwb970]

10. With me it's audio. Hope mine stays open.

They always seem to have whatever weird cable or adapter I need for my studio or a live sound setup. It ends up being cheaper than ordering online because the shipping costs on small items tend to be high.

[pothos]

3. i thought they already did the rebranding?

that whole thing about just calling it "the shack"? to me it makes no sense to become a store that sells batteries, headphones and smartphone cases. you can get that shit anywhere.

[TheBlackAdder]

4. RadioShack completely lost their focus... now just another Cell Phone store selling 'other stuff'.

Gone are the days when RadioShack catered to those with engineering-type skills.

They used to supply more 'nerdish' electrical components and supplies. Now, most of their stuff is commonplace, much like how Best Buy is just another appliance store. Both of these store removed the specialty components they used to sell and replaced them with all of the same common parts that can be found in a Sears, K-Mart, WalMart or Target. Such a stupid business model.

They would do better going back to their old specialty roots and sell consumer devices, like cell phones as a secondary item.

Best Buy used to have nice audio cables, battery backups, some high-end equipment. Now, they're just another TV, Apple, Appliance store... just like every other store. Try and buy high-end audio cabled in a Best Buy now. They just sell crap. Instead of being unique... they're just another 'common' store.

[davidpdx]

5. +1

They had a good niche market and have over the years blown it by trying to rebrand too many times.

The Super Bowl commercial was really good, but maybe too late.

[sendero]

7. I would like to agree with you...

.. but I'm not sure there are large numbers of "electronics hobbyists" any more. When I was a kid there were, I was one of them. But now, those same kids channel their efforts into assembling computers or hacking phones, not an activity that requires a lot of "parts", unless you consider video boards and USB boards to be parts - I don't and there are zillions of sources for them already anyway.

I will say that among those of us left RS lost their way not by selling cell phones but by offering really substandard cheaply made bottom of the line merchandise when it came to the hobbyist. A lot of their consumer items (like radios, computing equip) is of reasonable quality for the price but their components, connectors, cables, stuff like that is utter junk and not priced accordingly. Made a lot of folks just stop going there.

There is an RS about 20 miles from me in a small town. I hope it survives the cuts but I'm not betting on it.

[pocoloco]

14. "electronics hobbyists" are going to the source.

Most parts are manufactured in China and are dirt cheap with usually free shipping.

[Crash2Parties]

31. plenty of new genderation hobbyists

Wander over to hackaday or adafruit or makezine.com to see what they are doing. Mostly microcontrollers, 3-d printing/cnr, and a whole new DIY arena that mixes thru-hole and surface mount. I'd easily and happily compare them to the personal computer enthusiasts pre-1985 -ish, definitely pre 1982/IBM PC.

But Radio Shack has lost pretty much all of their geek credibility. They recently started carrying arduinos, but they shuffle the items too much and worse still, price them far, far above buying online plus shipping. The components drawers (which used to be, what, 6-8 swinging double sided pegboard) have nothing of use to the new hobbyiests apart from basic resistors and caps. No 555's, no optical couplers, etc.. And did I mention only one, really bad quality temp controllable soldering iron?

What could work for them is to start an internal skunk works of enthusiast-buyers coupled with experienced management. If they could regain the hobbyist market, they'd see the rest of their sale go up as well, if only by reputation, if not by actual recommendation.

Last thought: We've romanticized the old RS just a bit. There was a reason the TRS-80 was called the trash-80 & as I recall, they carried a lot of what would now be called, um, "reconditioned" parts.

[snooper2]

17. I went there last summer looking for one common capacitor

They didn't have it of course..

just a couple bins

I remember 20 years ago they had everything you needed to build/fix whatever you want-

[djean111]

6. Don't know if they still do this, but I used to be able to drop off a malfunctioning PC

and they would ship it to a nearby place and fix it, lower cost and very nice.
Last few times I went there - five minutes until a clerk emerged from the back, rude clerks, Kindle chargers that cost literally twice as much as i could find elsewhere.
Radio Shack will always have a place in my heart, though, because of the Amiga.
I would buy a new Amiga in a heartbeat.

[dionysus]

32. i still have my A500.. i should set it up!

memoriessssssss

[Helen Borg]

8. Well, the stores had become a joke...

The last time I set foot there was when I realized that pretty much all the boxed items you buy there is defective stuff previous customers had returned for some reason. And they keep giving it to people until finally one person is too busy to take it back.

[KurtNYC]

24. The last time I went to one, there was no sales person on the floor

and then they came running from the back and treated me as if I had stolen something.

I think Radio Shack's business model is too far gone to be updated. I prefer Frye's for electronics and I wish Frye's would consider doing smaller "express" stores.

[bigdarryl]

9. My prediction is when they close these 500 stores that's just the start

I give Radio Shack three years top and they will close ALL there stores.So if any DU'er know anyone working for them telll them to start looking for a new job NOW!!!!

[BoneDancer]

11. It's the only place where you can pick electronic parts like you can in an old-style hardware store.

They still have the trays full of resistors, capacitors, LEDs, etc. I'm fortunate to have two old-style hardware stores not far away. We have two Radio Shacks in the area. I suspect the one with the impossible parking lot is on the close list.

[Egalitarian Thug]

12. Another Texass based company that's been hollowed out and will now be tossed aside,

all so that a dozen parasites can walk away with millions. And it's all perfectly legal.

So long, suckers.

[onehandle]

13. But, but Super Bowl ad featuring stacks and stacks of Beats Audio gear?

Which is crap marketed to under 21 year olds who think it's 'cutting edge.'

[Prisoner_Number_Six]

15. Two words: "Circuit City"

Radio Shack is just another store that has lost its relevance.

A Real pity.

[RebelOne]

29. A Circuit City store closed here

in a large North Atlanta mall several years ago. I guess they weren't doing too well either.

[nilesobek]

16. Used to be able to get

cool radios that you could listen to programs around the world at Radio Shack. Went there a few months ago and all they had was cheap Walmart type radios.

[olddad56]

18. I've wondered for a long time how they managed to stay in business...

Few months ago, I went in their to buy a simple small cable. It was $21. Then I found the same cable that I needed on Texas Instruments website for $5, then on Amazon for $3. Bought it from amazon and returned the one from Radio Shack. You can't charge 7 times the price someone else is charging and remain in business.

[noiretextatique]

22. if i need something fast

I buy it and return it after I get it on EBay or Amazon for a fraction of the cost.

[mwooldri]

23. Mobile Phones.

That's the way they make their money. More often than not, if you're on a plan and you're eligible to upgrade and have to have the phone there and then today... going to the AT&T/Verizon/Sprint/T-Mobile store would cost you more than if you went to the Rat Shack. The days when you could get any bit of electronic gadgetry from there are gone. Some things they sell are worth it, some is just way overpriced.

[progressoid]

19. Uh Oh. My son-in-law works there.

But he hates it so...

[KurtNYC]

25. One of my friends used to go to Rdaio Shack to steal their employees

He said it was easy because they "know their stuff" but are "underpaid and over metric'd." Back in the day they paid minimum wage plus some bogus tiny commission.

He joked that Radio Shack was his HR department who pre-qualified his employees.

[gvstn]

20. I think there stores are a product of the franchisee

I have had a crappy Radio Shack nearby for 30 years. Terrible selection of real electronic components. Mostly just batteries and a poor selection of cheap gadgets that can be bought elsewhere for less.

However, I needed a USB drive a year ago and saw a Radio Shack ad that had them on sale. It was the last day of the sale and I was traveling that day. I stopped at a Radio Shack a couple hours from my house and it was beautiful. Well stocked, nice displays and a couple of clerks walking around offering knowledgeable advice. Completely different than my local store or the one at the mall.

I'm curious how this will shake out. Many stores may go but I'm guessing a few may stay around and find their niche.

[Erose999]

21. Years ago they had a store closing and I bought a bunch of stuff from the components cabinets for

pennies. Resistors, capacitors, LED's, bulb sockets, etc etc.

I'll say that Radio Shack has cut down their offerings a lot in that area and failed to keep parts in stock that people actually want. I needed some parts for a guitar, simple, common 250k potentiometers and Radio Shack didn't have them. But they have like 4 whole drawers of dp/dt switches.

[Politicalboi]

26. I got caught up in the Super Bowl ads

And IMO Radio Shack had the best one.

[Nye Bevan]

27. There's one a few minutes from me

but I haven't been there in a few years. Except to drop off old batteries for recycling. I used to be annoyed at their habit of asking for your name and address whatever you bought, no matter how small, and trying to sell extended warranties.

[shenmue]

28. I'll miss them.

I used to go there for little bits and wires I needed. I also feel sorry for the people who are losing their jobs. Hope they find something soon.

[Liberalynn]

30. I bought my tv from them a couple of years ago.

Their price was much better than the other stores at Christmas.