Having a lifelong friend that owns a Radio Shack franchise, he told me that those in the know, know the REAL reason why corporate decided to close 1,100 stores all over the nation. Sure, one can easily say low sales - standard excuse.
Its OBAMACARE, a.k.a The "affordable" healthcare act. AND the DICTATED raising of the minimum wage.
At the current moment, most Radio Shack franchisers pay their staff employees MINIMUM WAGE plus a percentage of the commissions on sales, with cellphone sales with plans offering the highest commission. Radio Shack would not be able to compete in the marketplace paying $15 an hour to their sales associates (manager/owners get the lion's share of the commissions and they DON'T have to sell anything!) to just stand around converting oxygen to carbon dioxide after the employee has done their mandatory cleanup/stocking/maintenance tasks while waiting for a customer to come in that WANTS to spend some big money.
Radio Shack is a publicly traded corporation, and the CEO must find ways to ensure the stockholders receive a return on their investment, lest he lose HIS job and benefits package. Cutting operating costs is the usual first step for many retail companies in a stagnant economy with closing underperforming locations the norm. Giving employees government mandated health benefits, and increasing wages is not in the game plan or a viable option. Changing the method of how goods and services are marketed is the usual second step.....with Chapter 13 reorganization next, and then Chapter 7 and liquidation of the company.
I can't wait to see how many "McBurger" joints and retailers are left open after these mandatory "executive orders" are enacted by the "community organizer" in Washington. The "good idea" fairy must be a personal friend of his.
Slashdot Mirror
Having a lifelong friend that owns a Radio Shack franchise, he told me that those in the know, know the REAL reason why corporate decided to close 1,100 stores all over the nation. Sure, one can easily say low sales - standard excuse. Its OBAMACARE, a.k.a The "affordable" healthcare act. AND the DICTATED raising of the minimum wage. At the current moment, most Radio Shack franchisers pay their staff employees MINIMUM WAGE plus a percentage of the commissions on sales, with cellphone sales with plans offering the highest commission. Radio Shack would not be able to compete in the marketplace paying $15 an hour to their sales associates (manager/owners get the lion's share of the commissions and they DON'T have to sell anything!) to just stand around converting oxygen to carbon dioxide after the employee has done their mandatory cleanup/stocking/maintenance tasks while waiting for a customer to come in that WANTS to spend some big money. Radio Shack is a publicly traded corporation, and the CEO must find ways to ensure the stockholders receive a return on their investment, lest he lose HIS job and benefits package. Cutting operating costs is the usual first step for many retail companies in a stagnant economy with closing underperforming locations the norm. Giving employees government mandated health benefits, and increasing wages is not in the game plan or a viable option. Changing the method of how goods and services are marketed is the usual second step.....with Chapter 13 reorganization next, and then Chapter 7 and liquidation of the company. I can't wait to see how many "McBurger" joints and retailers are left open after these mandatory "executive orders" are enacted by the "community organizer" in Washington. The "good idea" fairy must be a personal friend of his.