RadioShack Time Running Out According To Analysts
Nine straight quarterly loses is not helping the “Shack’s” recovery efforts any and is leading some people like BB&T Capital Markets analyst Anthony Chukumba to state that "… We increasingly believe time could be running out for the company". Shack shares dropped another 14% as investors are also sensing they will not be able to compete with the likes of other retailers like Best Buy, Amazon, and Walmart.
"The (RadioShack) brand is tired, and they don’t have the capital to re-position the brand," Wedbush Securities analyst Michael Pachter said even though RadioShack has opened 38 new “concept” stores which have been doing well. However, its the rest of the 4,212 stores that are underperforming that are going to force RadioShack to close 200 Shacks per year for the next 3 years. This being better news than the previously suggested 1100 stores they announced last March.
Useful for finding hard to find cables and adapters in the 80’s and 90’s, but today RadioShack just is not able to carry the range and hence buying online through Amazon or other internet retailers has lured consumers away from shipping locally at a Shack. Further it will be difficult to lure consumers into such a small store when Best Buy is conveniently located and provides so much more square footage of eye candy for the geek in all of us. So this leaves RadioShack between a rock and a hard place in such small stores to not have the assortment of hard to find products people need today and the small storefront with significantly less appeal than a Best Buy or Wal-Mart store.
You got your work cut out for your RadioShack but I wish you the best in your efforts to reinvent yourself in a VERY difficult and ever changing retail landscape.
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After I bought my first Osborne computer back in 1982, I bought a computer desk (well, really a table) and a huge daisy wheel printer (actually rebranded from a Ricoh) for $1,995 at my local Radio Shack. I remember the Manager drove me to one of their larger stores at the mall to show me their latest thing, a dot matrix printer for only $1,695. But I stuck with the more expensive model. Back in the 70s, and most of the 80s, a week didn’t pass without me being in my Radio Shack for something. How times have changed.