More on Radio Shack, store closings, new plans, etc (Your take on it?)

[The Straight Story]

Where did the innovative Radio Shack go to????

"RadioShack failed to achieve its financial objectives in 2005," Edmondson said. "We implemented several key changes including executive management, advertising, store operations, merchandise assortment, long-term wireless agreements, and more. We believe that the company's strategy is sound. But we must move at a much faster pace with a greater sense of urgency, and that is what necessitates our turnaround plan."

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"Sales results were good in many low-margin non-wireless categories; however, we experienced lower sales in high-margin categories. In addition, wireless sales and profits were below our expectations," said David Edmondson, president and chief executive officer. "The poor fourth quarter performance caused us to take a much deeper look at the state of our business and resulted in the launch of a turnaround plan including the significant fourth quarter inventory write-down."

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Over the next 18 months, RadioShack intends to achieve three major goals: increase the average unit volume of its core store base, rationalize its cost structure, and grow profitable square feet in its store portfolio.

The company will replace old, slower-moving merchandise with new, faster- moving merchandise within higher growth categories. RadioShack will concentrate its efforts and investment on improving top-performing stores in order to deliver a great customer experience. To do so, it will close 400 - 700 company-operated stores. In addition, the company intends to better align overhead costs with its business model which will help generate more profit per square foot. Lastly, the company will continue to expand its kiosk business and aggressively relocate RadioShack stores to better real estate.

In addition(to the 400-700 store closings), RadioShack intends to close its distribution centers in Charleston, SC and in Southhaven, MS.

More details here:
http://www.guru.newsalert.com/bin/story?StoryId=Cq_vyubWbmdq4Cda3ndi&FQ=c%25RSH%20

Now looking over this a few things come to mind, on a personal level - as to why I don't go to radio shack anymore:
1. I have fond memmories of the place. Dad and I bought a lot of electronics things there, plus we got our first computer there. Radio shack had it's own stuff, and was different than any other store I could think of (though I do recall another place that had similar things but not the depth of radio shack, I think it was thompson electronics store but I may be wrong).
I am not even sure what radio shack is anymore or how it is really different than other stores.

2. Their core business seemed to be hobbyists and for the non-hobbyist they had some unique items no one else had (like the old trs-80's). They had a battery club, and lots of cool things.

I could go on, but I found this information from their website sums it up for me in some ways:

Products That Took America by Storm
The decade of the '70s was pivotal for RadioShack. It was a time of incredible growth – not only in the number of stores that were opened, but in the quantity, quality and sophistication of the products available at the company's stores and dealers.

Following on the heels of the phenomenal popularity of citizen-band (CB) radios, the company had another instant hit.
In 1977, RadioShack introduced the first mass-produced personal computer: the TRS-80® microcomputer. In contrast to build-it-yourself units available at the time, the TRS-80 was fully wired and tested. Although a primitive machine by today's standards, it was a technological and price breakthrough, and overwhelming customer demand caused a production backlog that lasted for months. Over 200,000 TRS-80 Model I computers were sold from 1977 to 1981.

The '80s continued to make RadioShack the "biggest name in little computers," as the company's advertising proclaimed. In addition, RadioShack offered the first affordably priced stereo receiver with digital technology, the first mobile/portable cellular telephone that consumers could install themselves and the first high-performance satellite TV system that could be installed by the do-it-yourselfer.

A New Beginning
In July 1993, Leonard H. Roberts, a former chief executive with the Arby's and Shoney's restaurant chains, joined the company's RadioShack operating unit as president. The appointment of an outsider to the company's top spot was unprecedented in RadioShack's history, but Roberts brought with him innovative ideas on recreating the company. He was determined to transform the sleeping retail giant into a vibrant retail service concept.

"I don't care what your job title is," Roberts said during his first meeting with RadioShack senior management, "because from this day forward, I recognize only two jobs in our company: You either serve the customer directly, or you serve someone who does."

http://www.radioshackcorporation.com/about/history.html

[Demeter]

1. They Moved Away From Their Customer Base

In search of the elusive and now extinct Yuppie with more money than sense.

[Deja Q]

4. Go where the money is.

See my other post for more info. :)

[Deja Q]

2. They used to boast something like 7000 stories.

And sold lots of new electronic parts.

Given they don't even sell their own name-brand toy computers anymore... all they do is sell other peoples' parts at higher prices, along with a token selection of electronic parts for a field that's dead due to offshoring...

America is dead.

And the "philanthropic" execs will convert to the euro and vamoose.

Then expect the worst to happen.

[liveoaktx]

6. I went to Radio Shack the other day for a NIC card-the store

had changed its layout and the shelves containing computer components, wires, cables, gender changers, etc were ... gone. Instead, the store had a lot of overpriced finished goods that cost more than they would at a discount store. The ONLY reason I bought a NIC there was because of a time emergency.

[The Straight Story]

11. One of the reasons I suspect I highlighted:

In July 1993, Leonard H. Roberts, a former chief executive with the Arby's and Shoney's restaurant chains, joined the company's RadioShack operating unit as president. The appointment of an outsider to the company's top spot was unprecedented in RadioShack's history, but Roberts brought with him innovative ideas on recreating the company. He was determined to transform the sleeping retail giant into a vibrant retail service concept.

So shoneys, which sucks (the ones I went to anyway) and Arby's are this guys' main experience? And he comes in to a 'sleeping retail giant' and decides to recreate the company.

Reading over their history was amazing - until it got to the above point in time.

This, to me, has nothing to do with bush and the economy - it has to do with a dumbass at the helm without a clear vision of either customer base or need in the market.

[classics]

3. They priced themselves out of the market.

In addition to moving from specialty goods to mainstream goods where competition is extremely high, they also have priced themselves way outside the marketplace on store staples like batteries and toys.

RS used to sell a lot of things you could only get at RS, which resulted in a lot of sales of other items, even though they were overpriced. As they have gotten rid of most of the items that only RS sold, there really is no reason to go there instead of Wal-Mart or Target for anything.

RS needs to go back to concentrating on its specialty items or just shut down. Otherwise this is only the beginning of its slow and painful death.

[Skip Intro]

5. Best Buy, Circuit City and the ever-agressive Wal Mart played a part

as well, I'm sure.

Who goes to Radio Shack to buy a TV?

One of the distribution centers they're closing is in my hometown - about three miles from where I work.

[Nutmegger]

8. Yes, that definitely plays a factor

There were quite a few small family owned electronic stores but ever since Wal-Mart, Best Buy (a Media Play before they went out) and Circuit City took over, I've watched these small shops go out of business. It's a damn shame.

[Kali]

7. My experience: Local owner an incompetent drunk

who hires other similar for instalations. These guys couldn't manage a cd player for a dodge pick-up in less than three days. Then the POS promtly malfunctioned. That was when I quit going. (Note I would have done the instal myself - How hard is that? - but it was included in price and was a b-day gift. Never again.

Radioshack electronics = POS toys that last for one day

[MindPilot]

9. The staffing changed too

they used to be primarily an electronics parts store aimed at the hobbyist and basement tinkerer. Then the guy behind the counter knew something about electronics, but now it seems like it's always some drop-out who can barely conduct a credit card transaction let alone decipher the number on that SCR. Now radio shack is just an elaborate cell-phone kiosk.

[hobbit709]

10. Radio Shack now

wants only to sell you a new cell phone, get their credit card and buy their over-priced stuff.
A friend of mine worked there for 25 years. He was demoted from manager to sales person because he wasn't aggresive enough in signing people up for RS credit cards. His store was one of the top 10% in sales in the area. After he was tranferred, the store is now in the bottom 10% with 3 different managers in 1 year. He finally got smart and quit, cashed in his RS stock both in his 401K and personal, transferred the money to another 401k and is retiring. He did manage to get medical disability out of them for what 60-70 hours a week did to his back.

[The Straight Story]

12. It absolutely amazes me how blind upper management can be

in large retail companies like this.

I work for a huge company myself, and I am in management. I started as a tech and worked my way up - and have not forgotten what it was to be a tech. I still take good care of my people, invite them over for parties, give them a lot of lee way in taking off time for things, and work hard on their job security - all while saving the company money and increasing our line of business's profit.

What shocks me though at times is the waste I see, the idiotic ideas from upper management, and so on. I just don't think they get it. I am very vocal about it and peeople know me well for that but they rarely argue as I come prepared with logic and projections/facts/accounting.

Radio shack had it made, hell their old computers and games sell like wild on ebay (trs-80 models 1-4 do well) even though they are way out of date. People have fond memories of that place and now it means squat cause they have nothing original (again, read their history, they used to be on top of new technology).

[tridim]

13. Speaking for myself, I quit going to RS when they started

packaging their electronics parts in overpriced, single quantity packs. I don't miss RS at all because I discovered several great old-skool electronics suppliers to fill the gap. It's nice to talk to a sales clerk who actually knows what a resistor is, and actually has a good selection in stock. RS hasn't been worthy of the name "Radio Shack" since the early 80's IMO.

[XOKCowboy]

14. In my job, Radio Shack was always there...

in every major city with audio and video adapters, gender changers, cable, universal power units, etc. Whenever we had an emergency there was always one close to bail us out. It looks like these are exactly the low margin items that'll be discontinued and it'll be all cell phones, RC cars and gadgets that you can get cheaper at BestBuy, Fry's or anyplace on the internet.

That's a shame. Selling their soul for the bottom line.

[The Straight Story]

15. They do have this now,which is pretty cool (but pricey)

http://www.radioshack.com/product/index.jsp?productId=2104751&cp=&kw=cinego&parentPage=search



Bring the movie theater experience home.
Cinego Instant Theater Projector is a compact, all-in-one system for home theater: video projector with Texas Instruments Digital Light Processing™ technology, progressive-scan DVD player, 2.1 sound system and external subwoofer. No need to mess with a bulky TV, cumbersome cables, cords and other equipment--just pack up your Cinego projector and set it up in minutes for movie viewing anywhere there is a blank wall or screen. Plus, this DLP™ projector isn't just for viewing your DVDs. It can also be used for TV viewing when connected to a satellite or cable receiver, for video games and for viewing digital still images--all in one place! The Cinego projector is the perfect home theater system for anyone who wants bigger images, bigger sound and a state-of-the-art, in-home theater experience!

What is DLP™ technology? DLP™ (Digital Light Processing™) technology uses an optical semiconductor to manipulate light digitally for a crisp, clear picture. This optical semiconductor, called a Digital Micromirror Device or DMD chip, contains over 400,000 hinged microscopic mirrors (each less than one-fifth the width of a human hair). These mirrors, in conjunction with a digital video or graphic signal, a light source and a lens, work like light switches to reflect an all-digital image on the screen or other surface. They are placed less than one micron apart, to greatly reduce the pixellation in the image produced. The hinges on the mirrors allow them to tilt toward and away from the light source. Light generated by the DLP™ projection system goes through a color wheel on its way to the DMD chip. The Cinego D-1000 can create 16.7 million colors for a picture that will blow you away.

* Home theater projector with DLP™ technology for an instant home theater experience
* Projector weighs less than 8 lbs. so you can pack up and set up in minutes
* Control the screen size from 24-140" for excellent viewing in a variety of locations
* Up to 90% smaller than an ordinary TV, so there's less equipment and cable clutter

[XOKCowboy]

16. Dude if I wanted to buy a projector....

the company I work for is a Sony/Eiki/DP dealer. I can get better, cheaper projectors wholesale. I needed RS for all the little stuff when we set up shows on the road. It's a shame that they're abandoning us "enthusiasts".