Despite a humorous Super Bowl commercial poking fun at Radio Shack stores, the company will be closing about 1000 stores that it deems as under-performing. The brand image of Radio Shack has faded over the years, as the once regarded electronics experts are losing business to many big-box retailers and online sales. This generation growing up lived more with the impression that you buy your electronics from places like WalMart and Best Buy, rather than going into a corner store like Radio Shack and talking with an expert. The Radio Shack stores are just smaller than what consumers want, leaving a meager selection of products in-store to choose from.
The 80’s Called And Radio Shack Is Sending 1000 Stores Back
Radio Shack made its announcement to close these retail stores after another declining year in sales were reported, particularly their 4th quarter of 2013. Radio Shack, as a company, has been unable to produce a profit for the last 2 years straight, with no single quarter being an exception. This has been a bad sign for the company, but they do plan to change their strategy and come out of this ahead. During 2014 there will be a lot of restructuring of the company, and they will attempt to re-design their stores to meet consumer needs. They know that most customers are not walking in the door to buy a CB Radio to put in their T-Topped Camaro and instead are looking for mobile phones, TVs, and Computer Electronics.
This announcement may have some customers wondering what will happen to Radio Shack if this many stores are closed, while others will probably shrug their shoulders and wonder who even cares. Radio Shack still plans to keep roughly 4,000 retail stores open across the country, offering more than enough physical presence to stay in the public eye. One thing that they may need to work on is becoming more of an online retailer as well, as they have failed to successfully brand themselves in that arena, and are losing massive volumes of store traffic to places like Amazon and other online retailers.
Featured image of Radio Shack store from Wikipedia.
The 80’s Called And Radio Shack Is Sending 1000 Stores Back.