How does my recent need for a phone charger relate to RadioShack’s $21 million dollar 2nd quarterly net loss?
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 The usb options are all mini usb – the outdated standard.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?