The 94 year old retailer slims down, so to speak, this time (luckily for them) not in relevancy…
Radio Shack has always been the place to find things like really specific hearing aid batteries for your grandma, or random the obscure cord needed to connect the cable box in the spare bedroom. Apparently selling those items doesn’t necessarily pay the bills.
A hedge fund investment group called Standard General has stepped in to salvage the wreckage of the Radio Shack bankruptcy fiasco. The takeover calls for a reevaluation of the retailer’s position in an over-saturated marketplace. What this means is a rethought strategy for mapping stores, and a leaner, albeit more targeted, offering of products.
What is the lesson here? There are several.
Radio Shack let the internet world sneak attack. It’s a competitive world for tech products these days. In an age of endless online commerce with next day shipping, convenience and competitive cost have many times overshadowed brick and mortar convenience.
Plus their offerings were too much. A good guess would be that it is pricey to keep so many items in stock.
Kudos to their strong social media presence, but even that can only go so far; because sometimes brand presence is and isn’t enough.
On one side, brand recognition is what has floated the company for quite sometime. Radio Shack is a recognized name, and has earned consumer trust throughout the years. This will be great in the coming months in rural markets, where people still rely on the store their go-to place for electronic accessories.
On the flip side, recognition hasn’t been enough, or they wouldn’t have filed for bankruptcy. Because in this case, consumer trust didn’t always equal loyalty and sales. You can promote all day long, but if people aren’t buying what you promote, then it is a little like the definition of insanity (or negative ROI induced panic).
We all have to reconnect with our purpose. Radio Shack, in its heyday, had a niche…and then it didn’t.
Sometimes you just need a little revamp. It’s like the summer between 8th and 9th grade, everyone comes back to school a head taller and with blossoming bosoms, better hair cuts and trendier clothes.