Is there a place for Radio Shack?

Implications: There can be. In the spirit of first things first, cleaning up their operations, processes and balance sheet is absolutely necessary. It’s key to creating a solid foundation to support their next step – injecting vision, creativity and badly needed brand personality into their small stores, and making them synonymous with quick, easy transactions for basic CE and related products you need in hurry.


Analysis: Now that they seemed to have gotten their back end in order, Radio Shack needs to build a brand that stands for something. Something they can uniquely and superbly deliver, and that will drive their top line and future.

Their ads today promise brand names - Panasonic and LG LCD TVs, Apple ipods, TomTom personal navigation devices and Yamaha surround sound systems. 

Their web site today promises expertise and knowledge.

But walk by or into a store today, and it’s not clear what they stand for. Certainly not savvy merchandising, expert help, or a consistent experience from store to store.   - Many of the hottest CE items and brands available in select stores only.

With over 6000 small locations, Radio Shack is not going to be the place for heavily considered big-ticket or highly complex CE purchases. But, there is a sweet spot within entry and mid-level price points they can play in.

Radio Shack is uniquely positioned to deliver a convenience based value prop.  A value prop no one else in the market is delivering, but one consumers want. Key item assortments, combined with plenty of higher profit, higher frequency small ticket items - such as blank media and other consumables – can position Radio Shack as the 7-11 of consumer electronics.

When it's too far, too late, too inconvenient, or just not worth going to a big box for what you need, Radio Shack should be the first place consumers think of and go to. And, Radio Shack should reward them by delivering a consistent, quality experience at every one of the their 6000+ locations. (And, locations that aren’t convenient should be closed.)

Cleaning up the back end is a good start, but only a start.