re:With this plan you'd REALLY have to reintroduce the free battery cards!!
Exactly, Now we are selling battery's again which leads to equipment sales such as volt meters , battery analyzers, acdc adaptors. For the new product line you can sell ultra sonic cleaners, no name carrying cases, bags, lock smith tools (so I hear LOL) etc. The new product line allows for personal names and message on the products which leads to engraving services, engraving machines for home, engraving supplies etc. It would also allow them to go back to their roots. Tandy was in the leather goods business.The only problem is that now they may need bigger stores.
The number of people that actually do this is probably not enough to keep one single store in business. Having an entire chain of retail stores (or even vending machines) just to accommodate the few people that need a hand full of last minute parts is pretty ridiculous. It's just not going to work.
Besides, I think the vending machine idea is already taken.
I too think that parts alone will not save RS...but having them increases foot traffic for a demographic that does not have many choices locally.
A vending machine has too few selections, what you need is something like a scaled down Teva warehouse robot ( http://www.youtube.com/watch?v=lWsMdN7HMuABy ) operating in another room full of racks. You would select catagory of things that the Kiva would bring a rack of up to a window for you to look at and pick out the specific item you want. After picking somthing out and paying for it using a credit card a robotic arm would put it in a tray that would slide out for you to pickup.
On the vending side, we have vending machines at work that dispense IT equipment such as keyboards mice etc worries me that they dont get damaged as they drop into the draw below!
As for being CEO, first thing i'd do is give myself a big pat on the back and a huge pay rise, then think about the severance package I would be getting when I get the push out the door shortly afterwards
Private branding was the way Radio Shack used to do things. I had a programmable TI calculator back in 1979 and Radio Shack had one that was identical under the Archer branding. Back then only Archer and Tandy brands were sold at Radio Shack. If it came from a 3rd party it was re-branded.
I think Bob Lawrence has come up with the idea that is most likely to save the company stores, unfortunately it would not be any help to those of us that need a few electronic parts for a project.
The major problem for Radio Shack are two fold. First, there are not enough people involved in building computers and electronics to support more than a few stores, and those few would have to be in major population centers. Second, with all the rest of their products they are competing with major retailers such as WalMart, Future Shop, Toys-R-Us, etc., and mall booth or hole in the wall cell phone retailers.
Even in major population centers there would only be room for a few locations, and they would have to carry a much wider and more up to date inventory of parts. If I were in charge I would be looking at a few large stores that serve the entire diy/hobby market (electronics/microcontroller parts, robotics kits, R/C hobbyists, etc). I would also take a serious look at having some of those locations become the regional distribution centers for on-line sales as well.
The bulk of the money made at any RS store has always been the "top 500" of the inventory, the major items at the front of the store. In the old days those used to be stereos and CBs. Fewer people are buying quad systems, and CBs have turned into smart phones. The "bottom 2500" is bread and butter, but ask any commissioned sales associate how tough it is to make decent money selling resistors all day.
In the 70s and 80s what propelled Radio Shack was cordless phones, citizen band radios, scanners, telephones, and hi-fis. This supported the lower revenue (though higher profit) components everyone knows Radio Shack for. The problem is the world has moved on, or has been commoditized. If you're in the market for a cordless phone you just pick one up at Target. The mobile phone scene was already tough and over crowded when RS tried to get in on the action. They still have to complete with tens of thousands of mall kiosks, stand-alone mobile stores, provider specific outlets like AT&T and T-Mobile, online sales, and most recently, big box stores like Walmart.
So, it's all rather hopeless. Unless, maybe, some really hot technology comes around that RS can get behind. But it has to be something any household would want. 3D printing, while interesting, doesn't measure up.
I agree with what you said up to but not including the last paragraph. Even if some "some really hot technology that every household wants" comes around every major retailer would want to carry it so RS is still doomed. Unless they get into a niche market with large stores that carry or can provide a wide range of products they will not survive. I am not sure if it is the same in the US, but every major city in Canada has at least one large store that caters to the hobby/RC market, and they seem to do very well. The one thing they all have in common is a large store (5000sq ft +) and a great inventory (chips, kits, motors, auto electronics, RC cars/planes/boats, computer parts, TV, Satellite, phone, etc., etc.. Anything they do not stock they can order on line and send it to your home or let you pick it up in a few days.
If I was the CEO of RadioShack I would firstly change the name to some applicable cellphone retailer name, being that they won't be selling much of anything electronics components/application are concerned. That way we at RadioShack, soon to be known by some other alias, can more effectively market to our new-found target audience: everyone. Next I would phase out the stereo/audio aspect of the company to help integrate the new and much more robust cellphone stockpile.
TESCO is also about to start selling their own TESCO Tablet.
Of course that does not help RadioShack, if there is a market for such things the supermarkets and other mega stores can jump in on that in a big way and again leave RS behind.
An after-hours grocery store, convenience store, with FedEx, DHL, and UPS dropoff and pickup. Add in 24 hour dry-cleaning and the ability to pay your local utility bills and every Radio Shack location would be a beehive of activity.
It's original core customers, ham radio, are disappearing as one can now Skype globally and use a cellular phone locally. Guys in shacks with big antennas have become dinosaurs. And even ham radio has had to accept that there is far less to construct. One can buy a unit that plugs into the backplane of a PC and use that to provide far more sophistication than ham radios of old.
I doubt that Radio Shack really wants that market. They want 'home run' sales of the latest and hottest demand electronic device. Apple just isn't playing along.
Inventories of tiny DIY parts for electronics are just nearly impossible to manage in a small retail setting. It works as a secondary market for large supply houses that see it as supporting their future sales by educating new engineers with current components.
If they really wanted to support guys in actual radio shacks, they would have outlets across the frozen tundra of Alaska and Canada.
It is all a rather silly retail game they play of not know what they might try to cash in on next.
An after-hours grocery store, convenience store...
That TESCO I was talking about. The last one I was in was open 24 hours per day 7 days per week. No scope for any competition there. Not sure how these things go in the states.
Thing is. If RS went bust tomorrow and sold out all it's stores it would not be long before they had new occupants making money with them. Assuming they are in economically active locations like shopping malls that have lot's of shoppers around.
Who knows what that might be? Probably nothing to do with phones or electronics. Coffee shops? Tattoo parlors?
So, all RS has to do is know what those new occupants might do, and do that. Easy?
I have been to Tesco.... in Chiang Mai, Thailand. It is certainly NOT a franchise operation.
On the other hand, Radio Shack is a testimonial to how long a corporate franchise can go on and on from one exploit to the next without any real vision of what their enterprise's customer base is or how to hang on to a sweet spot of growth.
Tesco might sell 3-D printers, but they are not likely to get into supplying electronic components to a retail public in any big way.
ACE Hardware is a corporate franchise with a real vision for growth and an understanding of their customer base.
You can't compare today's Radio Shack with yesterday's Radio Shack. The old company was a relatively small retailer in downscale locations -- strip malls or older downtown areas. By the 70s they started moving into malls, coinciding with the expansion of suburban shopping centers, and eventually opened over 7,000 stores. In the early 80s they were quite successful with this model ... my stock split three times in the early part of that decade. Seven thousand stores represents a HUGE overhead that can only work with mainstream products to drive the profits. RS has kept the components, at least some of them, but they do not make the bulk of their money from it.
Based on public statements by SparkFun made a few years ago, we can generally estimate their annual revenue at roughly $20M to $25M. Not bad at all. They're among the most popular, and therefore successful, electronics hobbyists sources in the world. But now compare with Radio Shack's revenue in 2010 of about $4.5 billion. Actually, how can you compare the two? Completely different leagues. RS makes (or made) in two days what one of the most popular electronics hobby outlets makes in a whole year.
Sorry guys, out little hobby does not support a $4.5B/year retailer.
RS is a mainstream seller, and in the past they've had success supporting the legacy hobbyist market by promoting high dollar products at the front of the store. That's no longer working because their chosen mainstream markets are over-saturated. The hobbyist market alone cannot support 7,000 stores. No way. They could close 70% of them, and it still wouldn't work.
Heater, Tesco makes their money on mainstream merchandise and food, and they can sell any narrow niche specialty product they want. This is precisely the point I made. As with Radio Shack, their mainstream sales support the niche products, not the other way around.
On the other hand, Radio Shack is a testimonial to how long a corporate franchise can go on and on
While some people call Radio Shack a franchise, it is actually a chain. A minority (just 20%) of its stores are franchised. The other 80% are corporate owned. This percentage is little changed over the years.
Tesco makes their money on mainstream merchandise and food, and they can sell any narrow niche specialty product they want. This is precisely the point I made. As with Radio Shack, their mainstream sales support the niche products,
Exactly so. That's why I, jokingly, said "Perhaps RS should move into the grocery business?" as it seems their current main revenue stream is not working so well.
"....RadioShack's $96 million loss during the first half of 2013 was more than triple the prior-year period's loss. The company's new CEO, which is the fourth in the last 3 years, is working to turn the business around...Its debt, however, is a concern, with nearly $7.20 per share in debt.... "
Tesco
Tesco tried, beginning in 2007, to break into the US market with a chain of stores called fresh&easy in California, Nevada, and Arizona.
Not supermarkets - less inventory, pre-bagged produce, tasty heat & heat meals; no cashiers, no bakery or on-site butcher.
At first they had good prices on their house-brand bread, cheese, milk, and "processed" stuff; and they had some interesting "foreign" goods (HP, Bisto, and like condiments.)
Late last year they started looking for a buyer.
They found one a few months ago (The Yucaipa Group). Lots of stores got closed ("mothballed" by their account.)
My own turnaround suggestions wouldn't make me popular around here, but they involve:
1. Divesting the hobby electronics business to online sales and "Radio Shack Super Stores," for which there would be only 1 or 2 in any metro area -- the days of the "neighborhood Radio Shack store" are over in this day and age;
2. Changing the store name from Radio Shack;
3. Closing less productive stores, particularly those in the wonky parts of town, selling stand-alone real estate to generate cash;
4. Concentrating on a known 21st century growth segment that has a "cool" factor, such as portable connectable devices, which would include phones (of course), tablets, set top boxes, readers, personal audio players, anything Bluetooth, home automation, etc. Much of this they are already doing, but they need to do it in a big and bold way that doesn't confuse customers as to their purpose;
5. Redesigning the stores to be cool -- lower the light levels, bring in spot lighting, add color, and do everything else to avoid a store that looks like grandma shops there;
6. Reflect these changes in their online stores. The rs . com site is pretty bland. They're selling a lifestyle, yet the product presentation is lifeless.
My own turnaround suggestions wouldn't make me popular around here, but they involve:
1. Divesting the hobby electronics business to online sales and "Radio Shack Super Stores," for which there would be only 1 or 2 in any metro area -- the days of the "neighborhood Radio Shack store" are over in this day and age;
2. Changing the store name from Radio Shack;
3. Closing less productive stores, particularly those in the wonky parts of town, selling stand-alone real estate to generate cash;
4. Concentrating on a known 21st century growth segment that has a "cool" factor, such as portable connectable devices, which would include phones (of course), tablets, set top boxes, readers, personal audio players, anything Bluetooth, home automation, etc. Much of this they are already doing, but they need to do it in a big and bold way that doesn't confuse customers as to their purpose;
5. Redesigning the stores to be cool -- lower the light levels, bring in spot lighting, add color, and do everything else to avoid a store that looks like grandma shops there;
6. Reflect these changes in their online stores. The rs . com site is pretty bland. They're selling a lifestyle, yet the product presentation is lifeless.
Exactly so. That's why I, jokingly, said "Perhaps RS should move into the grocery business?" as it seems their current main revenue stream is not working so well.
You know those Aldi Sud and Aldi Nord stores in Germany, Heater? The smaller ones are about the size of a RadioShack and they sell fairly good quality cheeses, meats and produce in volume. Selection is quite narrow, but the quality seems reasonably good.
In the USA, the only small stores are private corner markets or 7-11, neither of which has the Aldi style. Maybe your jokingly-presented idea isn't all that funny and a real possibility.
Never heard of Aldi, although the German Lidle is around here. Something must be working for them as their owners are worth billions. The richest men in Germany.
Do you think RS could continue to supply resistors, capacitors, transistors, LEDs, Propellers from under the counter when they switch to quality cheeses, meats and produce. I think it's an excellent idea, geeks need food as well:)
You know those Aldi Sud and Aldi Nord stores in Germany, Heater? The smaller ones are about the size of a RadioShack and they sell fairly good quality cheeses, meats and produce in volume. Selection is quite narrow, but the quality seems reasonably good.
In the USA, the only small stores are private corner markets or 7-11, neither of which has the Aldi style. Maybe your jokingly-presented idea isn't all that funny and a real possibility.
Here on the east coast Aldi Supermarkets are all over the place.
From their web site "ALDI is a discount grocery chain that operates over 1,200 stores in 32 states".
Here is a link to a make that shows the states they have stores in.
The Aldi stores are clean, small and mainly sell their own private label products.
The products are good quality, and are sold at great prices.
Do you think RS could continue to supply resistors, capacitors, transistors, LEDs, Propellers from under the counter when they switch to quality cheeses, meats and produce. I think it's an excellent idea, geeks need food as well:)
The first Fry's Electronics store sold groceries and electronics. I recall going to the Sunnyvale store in the 70's, and I thought it was interesting that I could buy potato chips and computer chips in the same store. Now Fry's sells mostly consumer electronics and appliances plus electronic components for hobbyist. They still sell potato chips and other junk food, but it's in a small section of the store by the checkout counters. The Fry's store in Austin also has a small cafe in the middle of the store.
If RadioShack was smart they would follow Fry's example.
If RadioShack was smart they would follow Fry's example.
Just the store concept, hopefully. The other things they are "famous" for can stay with them.
Fry's, among others, shows that a soup-to-nuts electronics super-store with board-level components can work. They made about $2B last year, which is quite good for the small number of stores they have. A problem for Radio Shack is that they already tried this concept with Incredible Universe, and failed. In fact, Fry's ended up buying several of the store locations.
It wasn't IU that was bad, but their execution was mismanaged. The layout could be confusing, and the store couldn't decide if they were going after the pro audio market with all their isolated sound rooms, or the general consumer buyer, who just wanted a good deal on a boom box. They gave up too quickly, and lost a fortune. It needed a few more years to fine-tune as they went along. The end result is that RS is not likely to try it again, which is a shame.
The reason the Fry's in Sunnyvale had groceries is that's the business the father was in. The dad ran a small chain of successful grocery stores, then sold his stake to give his sons the money. I suspect the Fry brothers weren't sure which type of business would really take off, and they had connections to the food servicing side of things. So they tried both.
Comments
With this plan you'd REALLY have to reintroduce the free battery cards!!
re:With this plan you'd REALLY have to reintroduce the free battery cards!!
Exactly, Now we are selling battery's again which leads to equipment sales such as volt meters , battery analyzers, acdc adaptors. For the new product line you can sell ultra sonic cleaners, no name carrying cases, bags, lock smith tools (so I hear LOL) etc. The new product line allows for personal names and message on the products which leads to engraving services, engraving machines for home, engraving supplies etc. It would also allow them to go back to their roots. Tandy was in the leather goods business.The only problem is that now they may need bigger stores.
Actually the Free Battery card would be a great idea to increase foot traffic into the stores.
I too think that parts alone will not save RS...but having them increases foot traffic for a demographic that does not have many choices locally.
As for being CEO, first thing i'd do is give myself a big pat on the back and a huge pay rise, then think about the severance package I would be getting when I get the push out the door shortly afterwards
Has anyone seen news of any NEW product lines other than the 3D printers...which were already in the product pipeline for months.
The major problem for Radio Shack are two fold. First, there are not enough people involved in building computers and electronics to support more than a few stores, and those few would have to be in major population centers. Second, with all the rest of their products they are competing with major retailers such as WalMart, Future Shop, Toys-R-Us, etc., and mall booth or hole in the wall cell phone retailers.
Even in major population centers there would only be room for a few locations, and they would have to carry a much wider and more up to date inventory of parts. If I were in charge I would be looking at a few large stores that serve the entire diy/hobby market (electronics/microcontroller parts, robotics kits, R/C hobbyists, etc). I would also take a serious look at having some of those locations become the regional distribution centers for on-line sales as well.
In the 70s and 80s what propelled Radio Shack was cordless phones, citizen band radios, scanners, telephones, and hi-fis. This supported the lower revenue (though higher profit) components everyone knows Radio Shack for. The problem is the world has moved on, or has been commoditized. If you're in the market for a cordless phone you just pick one up at Target. The mobile phone scene was already tough and over crowded when RS tried to get in on the action. They still have to complete with tens of thousands of mall kiosks, stand-alone mobile stores, provider specific outlets like AT&T and T-Mobile, online sales, and most recently, big box stores like Walmart.
So, it's all rather hopeless. Unless, maybe, some really hot technology comes around that RS can get behind. But it has to be something any household would want. 3D printing, while interesting, doesn't measure up.
I agree with what you said up to but not including the last paragraph. Even if some "some really hot technology that every household wants" comes around every major retailer would want to carry it so RS is still doomed. Unless they get into a niche market with large stores that carry or can provide a wide range of products they will not survive. I am not sure if it is the same in the US, but every major city in Canada has at least one large store that caters to the hobby/RC market, and they seem to do very well. The one thing they all have in common is a large store (5000sq ft +) and a great inventory (chips, kits, motors, auto electronics, RC cars/planes/boats, computer parts, TV, Satellite, phone, etc., etc.. Anything they do not stock they can order on line and send it to your home or let you pick it up in a few days.
In the UK the TESCO supermarket chain is already looking at offering 3D printing in it's stores:
http://www.dailymail.co.uk/sciencetech/article-2348278/Tesco-soon-offer-3D-printing-customers-print-toys-spare-parts-clothes.html
With a view to possibly selling 3D printers at some point.
TESCO is also about to start selling their own TESCO Tablet.
Of course that does not help RadioShack, if there is a market for such things the supermarkets and other mega stores can jump in on that in a big way and again leave RS behind.
Perhaps RS should move into the grocery business?
It's original core customers, ham radio, are disappearing as one can now Skype globally and use a cellular phone locally. Guys in shacks with big antennas have become dinosaurs. And even ham radio has had to accept that there is far less to construct. One can buy a unit that plugs into the backplane of a PC and use that to provide far more sophistication than ham radios of old.
I doubt that Radio Shack really wants that market. They want 'home run' sales of the latest and hottest demand electronic device. Apple just isn't playing along.
Inventories of tiny DIY parts for electronics are just nearly impossible to manage in a small retail setting. It works as a secondary market for large supply houses that see it as supporting their future sales by educating new engineers with current components.
If they really wanted to support guys in actual radio shacks, they would have outlets across the frozen tundra of Alaska and Canada.
It is all a rather silly retail game they play of not know what they might try to cash in on next.
Thing is. If RS went bust tomorrow and sold out all it's stores it would not be long before they had new occupants making money with them. Assuming they are in economically active locations like shopping malls that have lot's of shoppers around.
Who knows what that might be? Probably nothing to do with phones or electronics. Coffee shops? Tattoo parlors?
So, all RS has to do is know what those new occupants might do, and do that. Easy?
On the other hand, Radio Shack is a testimonial to how long a corporate franchise can go on and on from one exploit to the next without any real vision of what their enterprise's customer base is or how to hang on to a sweet spot of growth.
Tesco might sell 3-D printers, but they are not likely to get into supplying electronic components to a retail public in any big way.
ACE Hardware is a corporate franchise with a real vision for growth and an understanding of their customer base.
Based on public statements by SparkFun made a few years ago, we can generally estimate their annual revenue at roughly $20M to $25M. Not bad at all. They're among the most popular, and therefore successful, electronics hobbyists sources in the world. But now compare with Radio Shack's revenue in 2010 of about $4.5 billion. Actually, how can you compare the two? Completely different leagues. RS makes (or made) in two days what one of the most popular electronics hobby outlets makes in a whole year.
Sorry guys, out little hobby does not support a $4.5B/year retailer.
RS is a mainstream seller, and in the past they've had success supporting the legacy hobbyist market by promoting high dollar products at the front of the store. That's no longer working because their chosen mainstream markets are over-saturated. The hobbyist market alone cannot support 7,000 stores. No way. They could close 70% of them, and it still wouldn't work.
Heater, Tesco makes their money on mainstream merchandise and food, and they can sell any narrow niche specialty product they want. This is precisely the point I made. As with Radio Shack, their mainstream sales support the niche products, not the other way around.
While some people call Radio Shack a franchise, it is actually a chain. A minority (just 20%) of its stores are franchised. The other 80% are corporate owned. This percentage is little changed over the years.
"....RadioShack's $96 million loss during the first half of 2013 was more than triple the prior-year period's loss. The company's new CEO, which is the fourth in the last 3 years, is working to turn the business around...Its debt, however, is a concern, with nearly $7.20 per share in debt.... "
Wow.
What's this! Picking on us Canucks again! Oh well, at least you included Alaskans.
Tesco tried, beginning in 2007, to break into the US market with a chain of stores called fresh&easy in California, Nevada, and Arizona.
Not supermarkets - less inventory, pre-bagged produce, tasty heat & heat meals; no cashiers, no bakery or on-site butcher.
At first they had good prices on their house-brand bread, cheese, milk, and "processed" stuff; and they had some interesting "foreign" goods (HP, Bisto, and like condiments.)
Late last year they started looking for a buyer.
They found one a few months ago (The Yucaipa Group). Lots of stores got closed ("mothballed" by their account.)
1. Divesting the hobby electronics business to online sales and "Radio Shack Super Stores," for which there would be only 1 or 2 in any metro area -- the days of the "neighborhood Radio Shack store" are over in this day and age;
2. Changing the store name from Radio Shack;
3. Closing less productive stores, particularly those in the wonky parts of town, selling stand-alone real estate to generate cash;
4. Concentrating on a known 21st century growth segment that has a "cool" factor, such as portable connectable devices, which would include phones (of course), tablets, set top boxes, readers, personal audio players, anything Bluetooth, home automation, etc. Much of this they are already doing, but they need to do it in a big and bold way that doesn't confuse customers as to their purpose;
5. Redesigning the stores to be cool -- lower the light levels, bring in spot lighting, add color, and do everything else to avoid a store that looks like grandma shops there;
6. Reflect these changes in their online stores. The rs . com site is pretty bland. They're selling a lifestyle, yet the product presentation is lifeless.
You know those Aldi Sud and Aldi Nord stores in Germany, Heater? The smaller ones are about the size of a RadioShack and they sell fairly good quality cheeses, meats and produce in volume. Selection is quite narrow, but the quality seems reasonably good.
In the USA, the only small stores are private corner markets or 7-11, neither of which has the Aldi style. Maybe your jokingly-presented idea isn't all that funny and a real possibility.
Never heard of Aldi, although the German Lidle is around here. Something must be working for them as their owners are worth billions. The richest men in Germany.
Do you think RS could continue to supply resistors, capacitors, transistors, LEDs, Propellers from under the counter when they switch to quality cheeses, meats and produce. I think it's an excellent idea, geeks need food as well:)
Here on the east coast Aldi Supermarkets are all over the place.
From their web site "ALDI is a discount grocery chain that operates over 1,200 stores in 32 states".
Here is a link to a make that shows the states they have stores in.
The Aldi stores are clean, small and mainly sell their own private label products.
The products are good quality, and are sold at great prices.
No, I don't work for Aldi, I just shop there.
If RadioShack was smart they would follow Fry's example.
Just the store concept, hopefully. The other things they are "famous" for can stay with them.
Fry's, among others, shows that a soup-to-nuts electronics super-store with board-level components can work. They made about $2B last year, which is quite good for the small number of stores they have. A problem for Radio Shack is that they already tried this concept with Incredible Universe, and failed. In fact, Fry's ended up buying several of the store locations.
It wasn't IU that was bad, but their execution was mismanaged. The layout could be confusing, and the store couldn't decide if they were going after the pro audio market with all their isolated sound rooms, or the general consumer buyer, who just wanted a good deal on a boom box. They gave up too quickly, and lost a fortune. It needed a few more years to fine-tune as they went along. The end result is that RS is not likely to try it again, which is a shame.
The reason the Fry's in Sunnyvale had groceries is that's the business the father was in. The dad ran a small chain of successful grocery stores, then sold his stake to give his sons the money. I suspect the Fry brothers weren't sure which type of business would really take off, and they had connections to the food servicing side of things. So they tried both.