RadioShack’s $21MM Net Loss and a Phone Charger

How does my recent need for a phone charger relate to RadioShack’s $21 million dollar 2nd quarterly net loss?

RadioShack's $21MM Net Loss and a Phone Charger

Plenty.

On a recent visit to NYC, I needed two micro usb chargers for phones. “No problem, there’s RadioShack a few blocks down the street,” my daughter said.

Off I go, as the marketer in me is thinking that The Shack still has relevance to 20 somethings.

I walk up to the phone charger display. Nothing. The usb options are all mini usb – the outdated standard.

I ask the clerk. She looks around and tells me they don’t have any. I look in every aisle. Still nothing.

For me RadioShack has always been the place to go when you need to make something work. They failed. I went to Rite-Aid and bought what I needed within five minutes.

Last week, RadioShack shocked investors with a a huge net quarterly loss. Margins tanked as they focused on selling low-margin iPhones. But I can’t walk-in and buy an incredibly high margin and very much in-demand phone accessory.

I’m sure someone in the company’s Fort Worth headquarters is saying that my experience is a fluke. My response, “Get away from the desk and see what is really happening.”

Amazon is expected to launch same day local delivery soon by partnering with local brink-and-mortar stores with Amazon pick-up lockers.  Think of the power of RadioShack’s 4,700 corporate locations as Amazon’s delivery channel while offering high margin products and services that make today’s electronics work. Here’s Forbes take on the idea.

Thanks for listening.

What’s your advice to RadioShack?

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About donkincaid

Marketing | Customer Satisfaction Getting, Growing and Keeping Customers - Profitably www.linkedin.com/in/donkincaid
This entry was posted in Customer Satisfaction, Marketing, Retail, Technology and tagged , , . Bookmark the permalink.

2 Responses to RadioShack’s $21MM Net Loss and a Phone Charger

  1. Radio Shack is the last place I go if I need something they might carry, due to their prices and not so smart employees. The last time I was there out of desperation to buy a cable for $40 that I ended up returning because despite their insistence that it would work, they were wrong. I knew better but ended up doing what you did, went to Walgreens and found what I really needed.

    Re-invent the Shack? Maybe, but does anyone care anymore?

    • donkincaid says:

      Scott,

      Thanks for your comment.

      Often the best turnaround opportunities are only after there appears to be no hope.

      I don’t think current management gets it yet. They surprised their investors with the loss and don’t appear to have a solution. It’s easy to know early in the quarter how phone sales will impact net income.

      Now we’ll see if the executive team cares.

      Don

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