Tuesday, February 21, 2006

RadioShack to close up to 700 stores

NEW YORK (Reuters) - RadioShack Corp. (NYSE:RSH - news), whose chief executive has admitted to lying on his resume, on Friday said quarterly profit fell 62 percent after a switch in wireless providers led to an inventory write-down, sending its shares to a nearly three-year low.

BIG surprise. Whenever I need to make a RadioShack trip for components I have to feign illness and try to get an unsuspecting friend or relative to go in my place. Why do you need my phone number? No I don't want a cell phone or a credit card! I want a $5 breadboard and some solder! Do they actually think that they can get people who come in for batteries to leave with a Verizon phone and a $2,000 credit line?

How about they rewind the clock to the '80s and do what they USED to do best. Sell electronics and hobby kits and some cheap A/V equipment. Don't sell cell phones and computers. Make the store fun again. Like a poor mans Sharper Image. TRUE. They won't be able to grow into a Best Buy with this model. But they'll have your own little niche market to themselves.


At 2/21/2006 9:21 AM , Blogger Ryan said...

Wow. That was weird. Some how Blogger posted this entry but then it didn't make it into their database. So no one could leave comments on it. Strike 1 for Blogger.

At 2/21/2006 12:18 PM , Anonymous Anonymous said...

If I need something in a jiffy, I head out to Fry's... They have a much larger selection of components and enclosures than Radio Shack ever did. The prices aren't that great, though.

I'm surprised Radio Shack is still around, honestly. It seems like they now survive off cell phones (at least until last quarter, maybe) and crappy cables and accessories.

I wonder how long it will be before they re-brand and stop selling radios all together.

At 2/21/2006 3:49 PM , Anonymous Anonymous said...

You can never go to RadioShack, buy what you need, and just be done with it. They always have some crappy thing that they sell you first and then it doesn't work and you have to go back to return it. And yes, they are very invasive about tracking who you are whenever you buy something.

It's real crazy because dedicated cell phone stores are popping up everywhere and do much better business than RadioShack. Basically, they've earned a reputation for selling crappy products. Anything worth more than $5 you shouldn't buy at RadioShack. They should be working to turn that image around. It's amazing how many businesses are based around providing crappy service and poor value for the dollar instead of doing the best job they can to earn their customers.

Fry's does do a good job of covering the crappy components that RadioShack tends to specialize in, but in Chicagoland there is only one store which, depending on where you are, can be out of the way to get to. Fry's is like Best Buy, Radioshack, and Microcenter rolled into one.


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