The only way they could survive IMO is to shrink down to a handfull of key stores across the Nation then focus back on the original niche like milf suggests, then give HRO and the like a run for their money. Ham radio oughta be in their stores!
I know this is a very old post I’m quoting but I found your comment interesting. However, I don’t think this suggestion would work and I’ll tell you why. I’ve been in four different HROs in California within the past 12 months. Every time I walk in there, I see pretty much the same guys chatting with the owners – I am VERY good with faces, almost photographic if you will, and I remember a face forever. All of these guys (ALL males, NO women) are at least in their last 50’s to 70’s range. I’m 52 and I was ALWAYS the youngest person in the stores. Hardly anything is actually being bought - it's just a BS session, guys talking about antennas, DXing etc.
Now, in order for your business model to work, you would have to assume there is this great, big ham radio hobbyist demographic whose needs aren’t being met, and if RS would only cater to this demographic they would thrive. But as I said, there are no long lines of people “overcrowding” the existing HROs, at least the ones I’ve been in. If RS DID dwindle down to a “handful of key stores”, it would literally be a handful – perhaps a dozen stores could easily handle the ham radio/scannist demographic.
I will also say:
1. In all the times I have been to HRO I have NEVER seen anyone look at or even talk about scanners.
2. Same thing with Radio Shack. NEVER saw anyone talk about scanners or ham radio equipment.