RadioShack Closing 400-700 Stores

[antfreq]

http://www.thestreet.com/_tscrss/sto.../10269086.html

selected bits

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

The company will replace old, slower-moving merchandise with new, faster- moving merchandise within higher growth categories.

... the company will continue to expand its kiosk business and aggressively relocate RadioShack stores to better real estate.

[Tom-H]

What I found even more interesting after reading the story at your link was the fact that RadioShacks current CEO apparently lied on his resume.

The story at the following link states that CEO David Edmunson lied about having degrees in both theology and psychology. Both schools he listed as getting the degrees from have no records stating such.

Can you say OOPS!

http://www.forbes.com/2006/02/16/rad...acescan11.html

[dimab]

yup. RS in my town is packing up.

[MacombMonitor]

Originally Posted by Tom-H

What I found even more interesting after reading the story at your link was the fact that RadioShacks current CEO apparently lied on his resume.

The story at the following link states that CEO David Edmunson lied about having degrees in both theology and psychology. Both schools he listed as getting the degrees from have no records stating such.

Can you say OOPS!

http://www.forbes.com/2006/02/16/rad...acescan11.html

Seems to be quite common these days. Look at the guy that was running FEMA!

I think with the obvious frequency that this is showing up, employers should start double checking their employee's credentials, and firing some of these frauds. It's not fair to those that really did earn degrees, or to those that haven't, and have suffered for it.

[Drifter]

Radio Shack has completely forgotten what it used to be about (electronics and radio hobby) and has gotten greedy...and now they pay the price.

I had this discussion with a friend recently and he said "oh but nobody does that stuff anymore" and I had to let him know how wrong he was, it's just that we've all been forced online by the lack of decent stores.

[rpowley]

Originally Posted by Drifter

Radio Shack has completely forgotten what it used to be about (electronics and radio hobby) and has gotten greedy...and now they pay the price.

I had this discussion with a friend recently and he said "oh but nobody does that stuff anymore" and I had to let him know how wrong he was, it's just that we've all been forced online by the lack of decent stores.

You are exactly right.....I drive past two of their "cell phone kiosk" type stores to get to a Radio Shack that has decent selection of electronics and radio stuff.

[antfreq]

Originally Posted by Drifter

Radio Shack has completely forgotten what it used to be about (electronics and radio hobby) and has gotten greedy...and now they pay the price.

I had this discussion with a friend recently and he said "oh but nobody does that stuff anymore" and I had to let him know how wrong he was, it's just that we've all been forced online by the lack of decent stores.

I'm curious about how this will affect Radio Shacks handling of scanners. Radio Shack used to be the only game in town to sell specialized electronics such as circuits, CBs and scanners. That is no longer true. Consumers can find the same product for a fraction of the price and triple the selection online. That opens up a whole other discussion about online sales.

I live in a major metro area with literally dozens of Radio Shacks. Inside malls and nestled into a strip mall, it's not hard to find a Radio Shack even after a few have shut down.

I remember walking into a Radio Shack to find a very nice selection of scanners. All lined up on a shelf or glass case. Models ranging from desktops to handhelds, clearance to state-of-the-art. Next to the scanners would be HAM and business radios with accessories.

Over the last couple years I've noticed Radio Shack's sales and advertising approach change greatly. Walking into a store it's easy to see what Radio Shack WANTS to sell.

Satellite Radio, Cell phones and computer accessories. One side is covered with a million cell phone accessories and models, the other side is a nook of wireless routers, cables, iPod bits and a kiosk of Satellite radios galore.

Walk to the counter, dodging the GIANT remote control HUMMER, you'll have to peek and poke around another billion cell phone cables, covers and models.

Giant posters and brilliant placards litter the walls and counters to advertise Radio Shack deals and packages for cell phones and their credit card.

Poking around a Radio Shack one day I spent quite some time trying to find their nook and pocket of scanner supplies. Noticing nothing excitng and different I worked my way to the front counter only to find a myriad of FRS radios. Nothing grand and nothing special. Standard FAMILY radios.

As I was leaving I spotted a tiny glass case, mounted up on a wall in a corner. I saw the familar shape and protruding antenna of a scanner. A simple tiny case. Nothing brilliant. A tiny red tag caught my eye - SALE -

In a blister pack ( plastic package ) was a Pro-97 nicely priced. The grey brick was appealing, and it had been quite a while since I spent some money on a Radio Shack scanner. ( i'm a uniden kinda guy ). Quickly I noticed how streamlined the scanner was packaged. It was like I had grabbed a cheap CD player from a WalMart shelf. I had never seen a scanner being sold and displayed in such a manner. I also noticed that this particular scanner DID NOT come with a wall wart. WHAT!??!!? These days that is just insane. A few feet away was the proud display of Radio Shacks wall-o-warts. Wall warts and adaptors somewhat neatly arranged. Personally I think this is one of the most intimidating parts of the store for a unsuspecting customer, one that is not "well" educated with electronics. Thinking, "Trust me sir, I don't need your help outside of handing me my reciept." I shooed away the salesman, picked out my wall adaptor and nubbin and bought my scanner. On a side note, I had to travel to another store to get the PC cable. Fun stuff.

As I walked out of the store I thought, "Sheesh, your average joe wouldn't even give that scanner in a blister pack, in the corner, a second look." That is when I had an epiphany, that Radio Shack caters to the average Joe. No longer does Radio Shack display their fleet of scanners proudly behind the register, directly in line-of-sight at the front counter. No longer can you find a dozen desktop and handheld models. No longer can you find an acceptable selection of HAM and business band radios.

Spend 15 minutes in the store and I'm sure you'll hear at least 15 times from the staff...

"We don't have that here in the store, but you can easily order it online."

Radio Shack is not the same store as it once was.

Originally Posted by Drifter

I had this discussion with a friend recently and he said "oh but nobody does that stuff anymore" and I had to let him know how wrong he was, it's just that we've all been forced online by the lack of decent stores.

Everybody reading this right now, who has been in the Scanner hobby for years ( before today's internet ) knows how we as a consumer have changed our methods of purchasing.

I will venture to guess that the majority of buyers get their scanners and supplies online.
We are mostly geeks at nature and enjoy "scanning" the internet for the golden reciever, the one that will occupy our time over the next several weeks.

Using the software downloaded online, programming via computer - nearly gone are the days of simply plugging in a few frequencies and watching that scanner do its amazing job. The hobby itself has developed into a scanner/online/computer package.

You are obviously sitting down in front of a computer right now reading this right? Why don't you just travel on over to wonderful http://www.scannermaster.com or http://www.grove-ent.com When you're done getting your new toy, jump on over to http://www.waltel.com/ and pick up some bits. Believe me, I will quickly jump over to an online vendor, buy that specific part I need, and wait a couple days.

Jumping back/forth from RR.com and a newly acquired scanner program by Butel or Uniden, I find myself sitting in front of my computer with a scanner ( or two, or three, or four ) next to me. I personally have a computer soley dedicated to my scanners. It runs a couple other basic programs, but I usually fire it up just for my scanners. The point is, a computer has become part of the scanner package and a computer is obviously a direct route to online sales. See the ultimate connection?

Will Radio Shack continue to be the vehicle to bring us the latest PRO scanner or will they slowly let the scanner fade away from the store shelves?

Will Radio Shack continue to push out the next generation scanner to be compared to Uniden's product? Will they start offering the free online software? I'm not wanting to turn this into a Uniden/Radio Shack issue. It is a matter of, will Radio Shack spend time and money on a product they obviously don't see as a priority.

It sounds a bit dramatic, but will Radio Shack ween itself from the scanner game?

Closing 400-700 stores is often times a "start" for a large corperation. After the initial phase, they will evaluate their standings. Status quo or more cuts? Part of the evaluation will be specific product sales. As the article states, specific products increase or descrease sales. Red or black ink. What color represents their scanners?

My first scanner was a Radio Shack product, I hope the PRO-97 isn't my last one.

[AEMTKieran]

The biggest problem I have is the push of damned cell phones. Scanners, parts, batteries, stereo systems, computer equipment, all seem to take a back seat to the damned phones. The cell phone market is already saturated. Time to focus on something else.

[K5MAR]

Radio Shack sells cellphones because, like the bank robber said: "That's where the money is". When somebody skips a local business to buy a scanner online and save $10, the store that used to sell scanners will go "where the money is" (or go under).

Myself, I try to buy from area businesses whenever possible, even if it costs slightly more. Example: I plan on buying a Yaesu FT-8800 ham rig. Online, it's running between $369 and $389, and may or may not include free shipping. In March, the Tulsa area amateur radio clubs will be holding their annual hamfest. If there is a vendor there with the 8800, I will buy from them, even though I have to drive to the hamfest (150 miles roundtrip) and pay sales tax (not to mention the delay in getting my new toy). It's worth it to me to support a local/area brick & morter store.

Mark S.

[John_M]

I heard that Verizon ended it's contract with RS. So the next time I go into a RS the salesman may not ask me: Can I interest you in a cellphone? I think they are under alot of competition from Circuit City and Walmart.

[MacombMonitor]

Originally Posted by JMedley_1

I heard that Verizon ended it's contract with RS. So the next time I go into a RS the salesman may not ask me: Can I interest you in a cellphone? I think they are under alot of competition from Circuit City and Walmart.

If only that could be true! On the contrary...Radio Shack is now pushing SPRINT, and CINGULAR! So it will be twice as bad!

http://www.radioshack.com/subcategor...064&cp=2032052

[tspainiv]

Originally Posted by JMedley_1

I heard that Verizon ended it's contract with RS. So the next time I go into a RS the salesman may not ask me: Can I interest you in a cellphone? I think they are under alot of competition from Circuit City and Walmart.

They now have a contract with Cingular so that phrase won't be going away anytime soon....

[woody_46]

Hmmm...wonder if this will change anything with the opening of Canadian Stores? Not that big of a deal anyways. There wasn't much of a scanner lineup available here in Canada. You were lucky to find one outdated unit on display, with an outrageous price. I guess the name "RADIOshack" should be changed to the "Cellphoneshack" anyways *sigh*. What happened to the old days when you could actually find radio equipment, & supplies there?

[bagmouse7]

They will be out of business in 5 years.
Look at what they say:

"The company will replace old, slower-moving merchandise with new, faster- moving merchandise within higher growth categories. "

I read this as:
"The company will replace old, slower-moving merchandise (electronic components - resisters, capacitators, etc) with new, faster-moving merchandise (crap like cellphones and remote control cars) within higher growth categories."

The only thing I ever buy from radio shack is the stuff (electronic components) that you just can't get anywhere else. What they call "faster-moving merchandise" you can get anywhere at stores that have a much wider selection (Besy Buy or Circuit City).

See ya Radio Shack, you will be missed...(when something electronic breaks...)

[diskmonger]

Radio shack has always been over priced, I believe this hurts their sales when people can either go online or walk next door to KMarts or Wallmarts and buy some of the same items for a LOT less. The only reason they have the business they do, is some of the stuff they sell you can't get at Kmarts/Wallmarts.

The GRE scanners/radios they sell are great. I owned a Uniden and traded it in for a GRE radio and never regreted it.

Ever been in a Fry's Electronic store? (Drool) They put Radio Shack to shame.

[whacker]

I've been a RS customer for a long time. I even worked there one Christmas season ('91). Obviously things changed for them, and sometimes it's of their own doing. There just aren't enough radio/electronics hobbyists to support the kind of store we would like to frequent. And a lot of us have been, out of necessity, swung over to the Web to get what we need/want at a good price. Same principle that applies to why WalMart does what it does, and the economic snowball that has been moving globally ever since WWII! Nothing is done in this country anymore that has to do with better judgement, unless it means a better report/numbers to the shareholders, and that means nothing is safe/sacred. Call it survival of the fittest, law of supply and demand, whatever. Some think it just means we'll simply evolve into something we're not currently familiar with, and they look forward to it (progress?). Others think that if we just weren't so bent on having the lowest price, and that if the stuff we wear, drive, walk on, build with, listen on, etc., were more domestically produced, a lot more people would be in better shape, instead of just yuppies and real estate fiddlers.

Sorry about the rant. I first got really pissed off at RS when they decided to stop issuing the paper catalogue. The one WITH the prices in it. What a drag...

[fireant]

Is there a list out there of the stores they plan to close ??? If so could someone please post it??

fireant

[Tom-H]

Originally Posted by fireant

Is there a list out there of the stores they plan to close ??? If so could someone please post it??

fireant

Good luck with that request. It wouldn't surprise me if the store employees didn't know which ones were closing, until they actually do!

[fireant]

Or show up for work and find a closed sign on the door which as been known to happen to some people.

fireant

[EC-7]

There WONT be a "list" and stores dont know until the last min. I have helped close 3 stores in the Detroit area 2 years ago. One day the manager will get a phone call out of the blue saying "Your store is closing in 2 weeks, were sending a small team there in 3 days to help you pack up, move merchandice to other stores and tear down." They dont gaurentee ANY of the employees jobs or even the managers. Your lucky if your still there after.

They get a are givin a sign to put up with the close date, and 2 nearest locations are listed.
Thy DONT do discount prices or extra sales, they just divide up and pack up all the merchandice and send it to other stores. Within about 8 days of the final sales day, ALL of the merchandise and fixtures are gone, and its a shell of a store.