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RadioShack To Close 1,100 Stores
wjcofkc writes "The decline of RadioShack has been painful to watch, and now CNN Money reports that they will be closing 1,100 of their stores, totaling 20% of their brick and mortar presence. RadioShack has also publicly admitted its current stores are out of date and in need of a massive overhaul. But the number-one culprit has been a continuous slide in sales down a steep slope in the area of mobile device sales. A few years ago, in a bid to expand its customer base, RadioShack made a bid to return to its roots as a hobbyist electronic components retailer. Apparently the extra traffic hasn't been enough to make up for their failings. The article mentions that some of their stiffest competition is coming from online retailers. The big question is, in order to ensure their survival, would RadioShack be better off continuing to phase out their brick and mortar presence while making substantial efforts to expand as an exclusively online retailer?"
There isn't a place for a Radio Shack that won't commit 100% to being the hobbyist shop they started to be, or an online retailer that isn't just a smaller version of Mouser or DigiKey. We already have little rat shacks everywhere on the Internet that sell soup-to-nuts, we need a retailer that is passionate about their place in the market. You can't beat the big boys on price - they can always undercut you, and if needs be - they can give product away for free until they drive you out of business. You need to be able to provide service and product that the larger competitors can't or won't - so far, Radio Shack doesn't seem to be able or willing to do it.
I stopped visiting RadioShack in the mid-90's because everything in it had their fucking name stamped on it in big ass bold letters. I wanted an alarm clock but every single one had "WE'RE RADIOSHACK BITCH" written on the front right next to the time. I hate this in much the same way I hate car dealers putting their dealerships logo on the car I want to buy. I actually made a salesman scrape it off and have it repainted at their expense before I purchased the vehicle.
Radio Shack would be better off just closing all of their stores and firing everyone, as that would surely make them heroes in the eyes of the American business community.
Nobody in America cares about electronics any more. You could stage a broad daylight bank robbery perpetrated by clowns armed with handgrenades and you'd have a below average chance of getting the average American to look up from their phone.
Anything that leads to massive waves of layoffs, abandoned stores, landfills brimming with brand new discarded products, crying, pain, suffering, bankruptcy, investor fraud, theft, arson, graft, embezzlement, female store staff getting their asses pinched, CNN specials, Piers Morgan scolding us five nights a week and a government bailout is always the better option.
Close 'em all.
Radio shack has always been one of those stores I walk into looking for parts and come out realizing I'm only getting it online and I have to wait a week. What they should do is repurpose the stores to become what they always should have been, a hacker haven. Fill it with knowledgeable people who know how to make custom electronics, and foster people who want to build things but don't know how. Problem is... its just too late. Would be cool to see someone like sparkfun or something buy them and do something like that.
The big question is, in order to ensure their survival, would Radio Shack be better off continuing to phase out their brick and mortar presence while making substantial efforts to expand as an exclusively online retailer?"
Not likely. They have no particular advantage in the online space aside from a recognizable (if tarnished) brand name. What they really should have done was to expand their catalog sales back in the day and become a distributor like Digikey or Mouser. I suppose they still could though they are behind the curve. They've gotten into cell phones but no one really thinks Radio Shack when they think cell phones. They sell batteries but there now are specialty battery stores that usually have a better selection and better prices. They don't have the scale or the expertise to compete with Amazon online and they are too unfocused to have profitable retail space. I can't really think of anything where Radio Shack would be my preferred shopping destination.
Radio shack has been trying to be all things to all people and when you do that you don't serve any of them well. They have expensive real estate, small square footage, small selections of products, high prices and unclear strategy. Their advantages are that they are fairly well known and have a lot of storefronts. That's a pretty thin advantage these days. I'm thinking Radio Shack might be a pretty good stock to think about short selling.
Went to Radio Shack 6 months ago for a replacement mini-usb cable for programming a Logitech Harmony remote for my parents (they lost theirs in a move). They wanted $30 for a 3-foot cable. At that price they deserve go to out of business. Waiting 2 days for Amazon to deliver your cable is inconvenient, but saving $25 to wait 2 days? That's a no-brainer for most folks. If instead of focusing on gouging ignorant consumers (they're not alone in this, I realize) instead of providing reasonably priced products with excellent service, they've done this to themselves.
Based on that experience, why would I even think of looking for hobby electronics at this store? So I can pay $10 for a capacitor available for 30 cents online?
I worked at RadioShack around the turn of the century. IMHO back then they had poor management at the cooperate level. Inside of listening to the stores and stocking things the customers were asking for (like blank CDs) they chose to stock things no one wanted (and overcharged for it). They claimed there higher prices were because they had better trained employees. The employees didn't see that money. And the training program was a joke. Every employee had to take about 15 multiple choice tests. But every store had cheat sheets and no one really learned anything.
At one point their managers filed a class action lawsuit against them. Some of the executives had to give dispositions and they were posted online. After reading them I could tell that either they had no idea how things worked in the store or they were lying though their teeth.
Around the time I left they had started putting part in "bins". And they started sending in secret shoppers. If an employee didn't ask every customer about a cell phone AND a satellite dish they were fired. Even before that turnover was like a fast food place.
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I'll have you know, sir, that my brother-in-law is a COLLEGE dropout selling cell phones at radioshack!
I think convenience is the one thing brick and mortar stores have going for them. I sometimes buy things at the local gas station. They are more expensive there, but they are a lot more convenient.
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Radio Shack is already 100x bigger than that niche could ever support
And, having been around and watching in the 1970s and comparing to today, I wouldn't be surprised if the hobbyist electronic niche is 100X time smaller today than it was then.
I was once denied a job at Radio Shack because I had been trained as an electronics technician. It was explained I knew too much about electronics and they didn't want me talking electronics with customers. The manager said they were trying to move the company away from that.
Radio Shack just makes me cry when I go in there now. Having one small cabinet with nothing more than about a dozen different resistor values and toggle switches priced at $8 a piece is not a "return to your roots"
When Radio Shack was doing well they sold some of the best, and even most unique Stereo equipment you could find. The first surround sound I ever heard was in a Radio Shack and that was a good 5 years before I saw it anywhere else. I could take in a parts list and the clerk would tell me to come back in a few days and he'd have my order ready.
There IS a market for Radio Shack and they could do well, but they need to get out of the mall where rent is so high and start stocking real stuff again. How about offering project boxes with custom silk screen or etching right in the store? I'd pay $100 - $200 for such a service. How about an array of knobs and such to make your project stand out? 3D printers and supplies? Arduino supplies... how about workshops on coding for them? Come on, this isn't that hard.
There's a strip mall near me and all within about 5 blocks you can find Woodcraft, Harbor Freight, Northern Tool, Home Depot, AutoZone, Hobby Lobby and a fabric store. THAT is where Radio Shack needs their store... not next to Bannana republic for gods sake.
I think a better headline would have been "Radio Shack still has at least 1,100 stores".
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As far as I'm concerned, Radio Shack's business model has long been to sell overpriced but inferior merchandise. In many areas it is the only place one can physically go to by some electronic parts, so it does get some traffic even from people who are reluctant to buy from them. If they were to go on-line only, I expect that they would soon be out of business completely, a result that I would not feel bad about because just maybe someone else might try to fill the void.
Even the simplest things bought from RS seem to be plagued with defects. I've bought cables from them and found them intermittent and once I bought a simple 2 to 1 telephone jack and, when my phone wouldn't dial when connected through it, I found it was wired wrong. Their electronic component "substitutes" are frequently improperly spec'ed. And as to price, I recently saw a Raspberry Pi kit in Radio Shack, it was priced well over $100.
May these stores just be the first, I'll be glad to see them all go.
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I would agree. People don't want to fix that expensive [something electronic], when they already know everything is surface mount, and they don't have the skill to fix it. The cost for the replacement part and tools is higher than the cost of the replacement unit.
We are in a disposable society now. Throw away your old electronics and buy new ones.
There are fewer hobbyists now. I was at one of the Radio Shacks that actually sells components. I spent probably 2 hours doing parts conversions in my head to see what could work, and redesigning parts, because virtually nothing I wanted was in stock. Even for 4 transistors, I spent time going through what they had to find what was "good enough", versus what I wanted. Part of that time, I was restocking their stuff, because things I was looking for were tossed back in the wrong drawers. Not just one compartment off, they'd be in the wrong rack entirely. They tried to help, but they knew more about the cell phones and batteries, than they knew about the components. At least one guy working there knew what a transistor or resistor was. We had a decent talk while I shopped for parts. When I couldn't find something (like heatsinks for the transistors I settled on), he checked the other local store inventory, and then ended up telling me I had to buy it online.
I was looking for another component the other day. I don't remember what it was, but it was something fairly simple. Their site had "Web Only" right the photo. The same for every potentially compatible part.
Serious? Seriousness is well above my pay grade.
Blame the MBAs. Every time they take over a niche business, they want to turn it into the business model of the largest generic vendor out there. The Science Channel is no longer science, but looks like every other cable channel. Mini wants to sell bigger and bigger cars. Radio Shack is no longer electronics bits and pieces, but wants to be every other electronics vendor. A successful small business is never enough. The greedy buggers only care about their suicidal rush to the top.
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RadioShack reminds me a lot of how CompUSA was run into the ground during its final decade of business. You basically had upper management throwing random ideas at the wall hoping to see what sticks (not much). The truth is, companies like these fail because the they are constantly trying to hitch themselves to the latest "bandwagon" rather than focusing on their core business.
With CompUSA, it was a result of them trying to become a BestBuy clone. In doing so, they relegated their core business of computer parts to one or two small isles of video cards, and their tech services devolved into being middle men shipping laptops out for warranty service. They chose instead to focus selling printers (because the ink and cables were high margin), TV's (because they wanted to be like BestBuy), cameras (because most could only be returned to the manufacturer back then, bypassing the store's bottom line or a while), and a shitload of laptops (but only because they could sell TAP on them). They replaced that stuff with such a wide variety of product that sometimes it felt like they had absorbed one of the generic Indian retailers that hangs out in mall hallways selling cheap RC copters, or Sega Genesis emulators. There was even a laughable attempt by the store manager to try and sell this new HD VHS system as being the next big thing, and how the AV quality was better then either HD-DVD or BluRay.
The biggest sign of trouble, however, was TAP (Technology Assurance Program, if I remember correctly). It was basically your standard high-margin warranty extension that most places offer. You can tell when a company is truly screwed because they begin to view these "products" as the only viable source of revenue, and begin training staff to push them as hard as possible. There were times where employees were basically instructed to use fear tactics to sell TAP, where they would play out scenarios for the customer like "You don't want to open this new monitor and find out there's a dead pixel do you? We can't return it if you don't purchase TAP!" Of course you also people like the best salesmen claiming TAP covered practically everything from flooding to divine retribution, when in reality it was basically an extension of the manufacturer's warranty.
The reason I bring all of this up is because the same patterns happened with Circuit City, and now RadioShack. They've confused their core business model with newer shiny opportunities, like cell phones, and service plans. It's fine to expand your business with those things, but it should never push your bread and butter out of the spotlight. RadioShack can branch out all it wants, as long as its stores continue to offer the core services (hacker parts, electronics, and knowledgeable staff) front and center. Since it isn't doing that, it will become another CompUSA.
Seriously. I've got two words for Radio Shack:
Monoprice and Digikey.
I went in there to buy some lame battery (CR123 or whatever) and ended up buying like a 30 pack online for cheaper than their ONE battery. Same deal with cables, electrical components, etc.
Oh gee, you started selling Arduino? At the size of Radio Shack, why the fuck can't they get within every $10 of the price of the board online? FAIL...
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Before Online Privacy was even a concept, Radio Shack happily demanded to know my phone number, home address, blood type, maternal grandmother's maiden name, the dog's last vet checkup results, an affidavit from my first girlfriend as to how often she caught me staring at her chest...
The sad part? One of the absolute best presents I ever had as a little kid was that 120-in-one electronics lab kit they used to sell (even the then-brand-new Atari VCS I got for Christmas came in 2nd place... but mostly because I had to share that with the younger siblings).
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I'm guessing the margins on the cell phone business were pretty good there for a while.
As much as I'd love a retail store where I could buy hobby components, and I'd be willing to pay more than internet prices for the immediacy. Heck, for an individual resistor or whatever, I'd pay double. But I don't think there's enough business there, sadly.
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The hobbyist niche didn't fully support them in the old days either, with something like 80% of retail revenue coming at Christmas time and Radio Shack selling a ton of RC toys and such. Other times of the year, non-geeks looking for cables, adapters, etc. were a major market for them. Their slogan "you've got questions, we've got answers" was accurate - their employees got raises for passing tests in various fields, so they would have the answer. Any average Joe could come in saying "I want to hook both my DVD player and my game console to two TVs ..." and the Radio Shack employees would steer them to the products they needed, cable, A/B switches, etc.
For the niche that defined the brand, that's still there, it's just shifted a little bit. The same guys, like me, are still interested in similar stuff. It's just shifted from ie short-wave radio to 3D printing. If each Radio Shack location (or some of them) had a 3D printer in the store, that would bring traffic from the same people who used to buy resistors and antennas there. We're not building homebrew computers anymore, but we sure might want some servos to hook to our Raspberry Pi.
Video game stores aren't still trying to sell Atari 2600 games, but they haven't changed too much - they are just selling the new games. Radio Shack could do the same. Not by selling (only) the same resistors they sold 30 years ago, but by adding what today's geeks want, stuff for rPi and microcontroller systems, and whatever else is most popular on makezine.com.
As to your 20 questions complaint, they always swear that they never sell or share your info. But decades ago I started giving RS my mailing info with a middle initial of R in my name. My middle name doesn't start with an R, it was just a flag to see where my junk mail was coming from. Sure enough, within a year, I was getting junk mail from "Bell & Howell Schools" (remember them?) wanting to sell me an education in electronics, with that R prominently placed between my first and last name.
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Exactly. Electronics is now just a support for software. You don't design electronics so much as specify what completed system you want to program. Electronics is a mature field now, the only place I see new challenges is in power electronics, either in cars/EV in general, and HVDC transmission, and I guess solar PV home systems. Everything else? Dead and buried. Take a look at 20 year old electronics magazines: I'd wager 90% of the proposed hobby projects are either useless, too expensive or simply not relevant anymore these days. When was the last time you needed a 100KHz sawtooth generator, even if it had a digital readout of the frequency? Who cares? Anything you needed a 100KHz sawtooth wave for is probably software-defined nowadays, or deeply buried in a 1$ microcontroller (PWM)...
I know I don't even use my oscilloscope much anymore, and I don't understand why some people seem so convinced you absolutely need one. To beginners, I always recommend a good power supply and to not waste time making your own. Get one that works first. Then you need a decent multimeter that at least checks diodes, and maybe capacitor and frequency measurement. Then you need one or two USB based instruments like a logic analyzer and a I2C/SPI/JTAG master. Then add a ICSP programmer for microcontrollers. Of course, a good soldering iron with fine tips, some fine braid, a bit of fine tin/lead solder. (It wets better).
There you go, small, simple, cheap, compact.
Oh I know, like last time I said this someone always comes up with an anecdote of the variety "but I had a signal that didn't work and the oscilloscope showed it had the wrong logic level!"
To which I say read the damn datasheet. You'll learn more and end up knowing your device more. Scopes are a tool of a bygone era where things like television sets had a few signal paths with one or two very complex analog signals snaking around a few active components where having all the information from one or two channels of an analog scope made sense.
"But but but!"
But nothing. Electronics has fundamentally shifted away from the basics of the R, the L and the C and is now about the ONE and the ZERO.
(Disclaimer: For the vast majority of hobyists I believe I am right. Naturally for the professional engineer working in a corporate environment things are different. But even then, there aren't that many 'scopes anymore. It's about the DCA.)
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