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Radioshack Celebrates One Year Anniversary Of Closing 500 Stores By Closing 500 More
Zero Hedge ^ | 02/04/2014 | Tyler Durden

Posted on 02/04/2014 2:41:04 PM PST by SeekAndFind

If it seems like it was exactly a year ago that turmoiling retailer Radioshack shut down 500 stores due to lack of consumer interest in its wares (and or consumer disposable cash), it is because it was. So how does Radioshack demonstrate its morbid sense of humor on the one year anniversary of said announcement? Well, by closing another 500, or about 12% of the retailer's total 4500 outlets currently in existence.

The WSJ reports that the company which once was the butt of all LBO-rumor jokes (and still is, only this time in the context of an M&A-rumor with JCPenney and/or the Joseph A. Wearhouse joint venture), is "planning to close around 500 stores in the coming months as the electronics retailer continues working with advisers to restructure the company."

RSH's pre-bankruptcy operation problems are well-documented. And funded - "in October, RadioShack secured $835 million in loans to refinance about $625 million of debt. Those funds, from a group led by GE Capital, also freed up cash for RadioShack's overhaul." Of course, when said overhaul fails, the loans rolls into a DIP loan which funds the company's bankruptcy.

As was well-documented during the Super Bowl, the Fort Worth, Texas, retail chain has been working on transforming its image from an old-school electronics store into a destination for shoppers looking for entertainment gadgets, like headphones and smartphone cases. Sadly, it appears to not be working.

The retailer has struggled to reverse a string of losses deepened by a sales strategy focused around smartphones, which failed to improve revenue over the past two years.

 

RadioShack executives last year suggested the company would resist downsizing its store footprint as they focused most of their attention on reinventing the brand's image. Stores might close in one section of a neighborhood to set up shop in more highly trafficked locales, but the number of outlets would stay the same, they had previously said.

 

"I think we're a 4,000-plus network," RadioShack Chief Executive Joe Magnacca said in a November interview. "My job is to make sure that we've got the market covered."

That, or a '0-precisely network.' And while the Shack struggles to find just what market it is that it covers, if any, the population will enjoy how it spends several months of cash flow on amusing Super Bowl gimmick ads such as this one which is a fitting - and hilarious - epitaph of what happens to every retailer that stop adapting to its current environment.

 

CLICK ABOVE LINK FOR THE VIDEO

 

Finally, while the ultimate fate of Radioshack is quite clear to most, a far more important topic is what happens to all the commercial real estate secuiritizations and/or malls that currently have a RSH location which is about to shutter. Then again, this is the new normal, and things such a fundamentals and cash flows are merely an irrelevant footnote.



TOPICS: Business/Economy; Computers/Internet
KEYWORDS: bhoeconomy; electronics; layoffs; radioshack; retail
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1 posted on 02/04/2014 2:41:04 PM PST by SeekAndFind
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To: SeekAndFind
As indicated before, I have three stores equidistant.

I'd be satisfied with just one as long as the inventory was kept up.

2 posted on 02/04/2014 2:44:06 PM PST by Paladin2
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To: Paladin2
You can't throw a rock in my town without hitting a Radio Shack. They've oversaturated the market.

Not as much as, say, "Walgreens" or "Starbucks", but they're certainly close.

3 posted on 02/04/2014 2:45:14 PM PST by wbill
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To: SeekAndFind

My experience with Radio Shack is that everything is way overpriced but it is a good place to find hard to get batteries.


4 posted on 02/04/2014 2:46:40 PM PST by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
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To: PoloSec

I miss the old Olson Electronics store. They handled a lot of neat stuff, like kits, etc..


5 posted on 02/04/2014 2:48:27 PM PST by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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To: SeekAndFind
One of the top Super Bowl commercials IMO!


The Phone Call: #InWithTheNew RadioShack Commercial

6 posted on 02/04/2014 2:50:21 PM PST by workerbee (The President of the United States is DOMESTIC ENEMY #1!)
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To: SeekAndFind

Back in the day Radio Shack was a Mecca for young budding inventors and electrical engineers.

I’m not sure why they still exist.


7 posted on 02/04/2014 2:52:37 PM PST by P-Marlowe (There can be no Victory without a fight and no battle without wounds)
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To: workerbee

It was funny but I don’t think it helped the brand. Really it just showed that RS used to be a great store to go to with all your electronics needs, and now they aren’t.


8 posted on 02/04/2014 2:52:58 PM PST by discostu (I don't meme well.)
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To: SeekAndFind

They have some things that I can’t find anywhere else, but I don’t like the attitude of the people they have working there, so I shop online where possible.

I won’t miss them.


9 posted on 02/04/2014 2:53:46 PM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
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To: SeekAndFind

RS used to carry all kinds of electronic parts..All of that went bye bye 10+ years ago.

I learned on my own how to replace transistors, capacitors etc., do basic troubleshooting and have save thousands in repairs over the years.

I get my electrical components on-line now.

And I don’t have to deal with 27 year olds who don’t know zip about anything..

RS has phones and Chinese trinket gadgets.......When the entire country is awash in cell phones and cheap gadgets..Did RS executives go to business school to learn how to destroy a business?


10 posted on 02/04/2014 2:55:00 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

I remember the CB craze in the late 70’s and RS was the place to go for all sorts of equipment related to it.


11 posted on 02/04/2014 3:05:39 PM PST by headstamp 2 (What would Scooby do?)
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To: discostu
I don't know -- the most important thing is that you remember it was a RS ad. That alone helps the brand. I see your point about the message, but the optimistic side of that is that they are "returning to greatness."
12 posted on 02/04/2014 3:09:50 PM PST by workerbee (The President of the United States is DOMESTIC ENEMY #1!)
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To: Dr. Bogus Pachysandra

“I miss the old Olson Electronics store. They handled a lot of neat stuff, like kits, etc.”

That was a long time ago. 45+ years ago, one of my first “hacks” was an AM radio transmitter “sort of kit” I got from them; I also got a part to boost my walkie-talkie power. You never knew what you would find in their “prices as marked” boxes. In Chicago, they were right across from Allied Electronics, which was also a very cool place with a retail desk and shop.


13 posted on 02/04/2014 3:15:47 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: SeekAndFind

I went in a couple of years ago and asked for a capacitor the saleschild looked at me like I was speaking Martian


14 posted on 02/04/2014 3:19:24 PM PST by globoreally
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To: I want the USA back

Their parts are for the most part outrageously overpriced, and the quality is basically Chinese floor sweepings. I once was buying a switch and noticed that it had fallen apart in the package! I’m sure that the clerk put it back...


15 posted on 02/04/2014 3:19:32 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: headstamp 2

Now ya send in your electronics and fat screen TV’s for a $700 repair as they use a .25 cent parts to make the repair.

Or the sheep just replace it and buy a new one or spend hundreds on extended warranty rip offs.


16 posted on 02/04/2014 3:20:41 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: SeekAndFind

the population of the country barely has any capability to understand the purpose of circuit boards, diodes or capacitors let alone how to design a circuit to utilize them.

we’ve dumbed down the population to sub third world status


17 posted on 02/04/2014 3:26:34 PM PST by sten (fighting tyranny never goes out of style)
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To: dragnet2

“Now ya send in your electronics and fat screen TV’s for a $700 repair as they use a .25 cent parts to make the repair.”

I’m sorry, I just have to say something here...actually, some of the parts on a modern surface mount circuit board cost considerably LESS than $0.01...BUT...it might take several thousands of dollars of equipment to find it and some boards simply can’t be diagnosed without a five-figure test fixture. Contrast this with fixing a transistor radio with some electronics knowledge and a $5.00 VOM from Radio Shack. Worse, instead of a $7.00 soldering iron and $3.00 of solder, it might take a hot-air gun, a “reballing” station for the ball-grid-array chips, and a circuit board oven to de/resolder the part, and the solder is now fairy exotic and perishable!


18 posted on 02/04/2014 3:39:20 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: SeekAndFind; Revolting cat!

I was in Radio Shack last month. Needed some kind of overpriced stereo whatsit connector piece.

Half of the store was cellphones and possibly cellphone services.

There was also a display of vibrators (uh, personal massagers) in the middle of the room as well.

I guess they know how to get their battery sales up.


19 posted on 02/04/2014 3:41:55 PM PST by a fool in paradise ("Health care is too important to be left to the government.")
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To: sten

“the population of the country barely has any capability to understand the purpose of circuit boards, diodes or capacitors let alone how to design a circuit to utilize them.”

Not all of them...but I feel that the percentage of capable young people is much smaller in propotion to “the rest” than it was even 20 years ago.

I buy most of my geek parts from China these days, and they are making original, creative sruff, stuff that clearly was never “invented here first”, and yes, it hurts for me to write this.


20 posted on 02/04/2014 3:43:12 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: workerbee

Exactly! I liked the commercial. Not many of the others....

RadioShack used to be a good place for DIY electronics. Not as much anymore.

But I did just buy an old-fashioned tape recorder for my son there. Can’t believe they still exist.


21 posted on 02/04/2014 3:44:17 PM PST by the OlLine Rebel (Common sense is an uncommon virtue./Technological progress cannot be legislated.)
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To: The Antiyuppie
it might take several thousands of dollars of equipment to find it

And it might not...It might be something painfully simple to spot, with no test equipment at all.

22 posted on 02/04/2014 3:47:36 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: The Antiyuppie

we barely do software any more. go into your local bookstore. software books use to be 3 or 4 isles. down to 1 in most book stores.

as for hardware, prototyping supplies are simply gone from retail. the last great store I saw that had loads of supplies was fryes in CA.


23 posted on 02/04/2014 3:49:07 PM PST by sten (fighting tyranny never goes out of style)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


24 posted on 02/04/2014 3:55:00 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


25 posted on 02/04/2014 3:55:24 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


26 posted on 02/04/2014 3:55:28 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


27 posted on 02/04/2014 3:55:53 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: GeronL

When the markets start to puke up the fake money and entitlements fade, we’ll see what our country really looks like.


28 posted on 02/04/2014 3:56:25 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


29 posted on 02/04/2014 3:58:16 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


30 posted on 02/04/2014 3:58:30 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: dragnet2; MeshugeMikey

That recovery is going so awesome, isn’t it??

All we will be able to afford in this country is rice and beans soon. And we will still be told we are in recovery.


31 posted on 02/04/2014 3:58:37 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: The Antiyuppie

I do the BGA rework stuff and have a fridge full of solder paste.

Radio Shack is pretty much useless nowadays.

I buy lots of stuff from http://www.taydaelectronics.com

They are in Thailand but they ship fast and reasonable and as for prices... knobs for .22 - 1n4007 .02 - PN2222 .05 condenser mics .25 - ceramic disc caps .01 - trimpots .06 - 8pin DIP sockets .03 - DC power jacks .13

You can get 10 small 2-sided pc boards for just 9.90 at http://imall.iteadstudio.com/open-pcb/pcb-prototyping.html


32 posted on 02/04/2014 4:02:37 PM PST by Bobalu (Happiness is a fast ISR)
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To: GeronL

its a rolling recovery....however ....where its rolling at the moment... no one seems to know!


33 posted on 02/04/2014 4:03:15 PM PST by MeshugeMikey ("When you meet the unbelievers, strike at their necks..." -- Qur'an 47:4)
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To: GeronL

You can say that again.


34 posted on 02/04/2014 4:06:05 PM PST by Bobalu (Happiness is a fast ISR)
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To: I want the USA back
so I shop online where possible

That's it in a nutshell, isn't it.

The grocery store, the gas station, and the smoke shop [on the reservation] are the only brick-and-mortar stores I go to. Oh, once in a blue moon, I may drive 15 miles to the nearest WalMart for something because it's raining and I'm bored, but that's about it.

We're seeing a truly revolutionary change in retailing take place before our very eyes.

35 posted on 02/04/2014 4:13:05 PM PST by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: SeekAndFind

It was due to a lack of men interested in or capable of paying for electronics parts for projects long ago. Then Radio Shack started using politically correct advertising and selling more finished electronics items in an effort to sell more to women. Meanwhile, smaller parts with different mounting technologies were used to make smaller appliances/gadgets.


36 posted on 02/04/2014 4:18:37 PM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: the OlLine Rebel
But I did just buy an old-fashioned tape recorder for my son there. Can’t believe they still exist.

By "old fashion", please tell me you aren't talking about a cassette recorder. If you are, then I am going shopping for a walker tomorrow, it's only a matter of time.

37 posted on 02/04/2014 4:20:39 PM PST by DeepInTheHeartOfTexas
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To: SeekAndFind

You know, I actually thought of going to Radio Shack today. I wanted to buy a joystick controller for Flight Simulator.

But when I thought of going through the hassle of declining go give my name and address to the salesperson, I decided to go to Best Buy instead.

Got it for $28.


38 posted on 02/04/2014 5:16:38 PM PST by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: SeekAndFind

I really don’t see much reason for Radio Shack to exist anymore as brick-and-mortar locations.

Having said that, I am in the process of digitizing my old cassette tape collection, most of which were recorded in the 70’s and are thus at or near 40 years old. The tapes that have held up the best over the years? Radio Shack Supertapes.


39 posted on 02/04/2014 5:20:09 PM PST by Some Fat Guy in L.A. (Still bitterly clinging to rational thought despite it's unfashionability)
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To: Bobalu

I’m an old fart and I still wire-wrap 1960-70’s designs so that they can be period authentic, but I did design and build one single surface mount project (it needed to be small) just to prove to myself that I could do it!


40 posted on 02/04/2014 5:23:02 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: Steely Tom

“But when I thought of going through the hassle of declining go give my name and address to the salesperson, I decided to go to Best Buy instead.”

...Where the Best Buy salesman tried to upsell you, and then sell you a warranty, and then when you escaped to the register, the cashier tried to sell you a warranty.


41 posted on 02/04/2014 5:34:08 PM PST by Blue Ink
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To: SeekAndFind; a fool in paradise

Radio Shack was a great chain when they sold electronics parts. There was another chain that sold electronics kits, what was its name Zenith, or something?


42 posted on 02/04/2014 5:36:49 PM PST by Revolting cat! (Bad things are wrong! Ice cream is delicious! We reserve the right to serve refuse to anyone!)
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To: Revolting cat!

You thinking of Heath kit? They sold some zenith items.


43 posted on 02/04/2014 5:41:10 PM PST by Covenantor ("Men are ruled...by liars who refuse them news, and by fools who cannot govern." Chesterton)
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To: Covenantor

Yep, Heath stores, superior to Radio Shack when it came to kits. Thanks.


44 posted on 02/04/2014 5:43:23 PM PST by Revolting cat! (Bad things are wrong! Ice cream is delicious! We reserve the right to serve refuse to anyone!)
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To: Revolting cat!
I've got a $1.09 store in my town that beats Radio Shack hands down. RCA cables, stereo whatsits, headphone adapters, headphone cord extenders, headphones, etc. each for $1.09. Actually you can get a whole kit of stereo whatsits for $1.09.

Each one of those items will run you $6.99-11.99 at Radio Shack and just come in Radio Shack's own packaging.

Computer screwdriver kits for $1.09 too (all of those odd star shaped heads in metric and English measures, tiny heads too, this stuff runs $20-30 a kit at Microcenter).

But I didn't have time to drive across town and spend $3-6 on gas to get a $1.09 whatsit.

45 posted on 02/04/2014 5:44:01 PM PST by a fool in paradise ("Health care is too important to be left to the government.")
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To: Covenantor
I've got a Heathkit tach/dwell meter I built in the 60s.

Still use it to tune up my 67 Camaro.


46 posted on 02/04/2014 5:44:21 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: a fool in paradise

Wow, that’s great. We have an old electronics store in town with all kinds of things, but it isn’t cheap, and who knows how long it’s going to survive. A family operation.


47 posted on 02/04/2014 5:46:44 PM PST by Revolting cat! (Bad things are wrong! Ice cream is delicious! We reserve the right to serve refuse to anyone!)
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To: Revolting cat!

This isn’t even an electronics store, just a well stocked dollar store.

There are still 2 or 3 parts stores I know of. Bins of whatever (pre-sorted, maybe one department with used items, the rest new).

The markup on cables and the like is insane.


48 posted on 02/04/2014 5:52:12 PM PST by a fool in paradise ("Health care is too important to be left to the government.")
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To: SeekAndFind

We have a Radio Shack in our small town. I have been in there a few times looking for things I can’t get at the local Wallymart but I’ve yet to buy anything there yet. When they have had what I was looking for they were 2 to 3x what I was willing to pay. When I really needed it, I could get it off the net for much, much less.

Their problem is they have lost their reason for existing. Their niche came from supplying electronics hobbyists with things that couldn’t be found elsewhere. Time moved on and electronics became too specialized and miniaturized for the hobbyist component business and they no longer have any consumer brands they can differentiate from competition. They are in a death spiral, charging premium prices stuff you can get elsewhere.


49 posted on 02/04/2014 6:02:36 PM PST by Flying Circus (God save us!)
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To: The Antiyuppie

SM is not hard, it’s just intimidating for a newbie.

You can just drag solder many parts.

And a cheap 150$ hot air rework station will let you handle maybe 90% of SM chores.

A good microscope or even better yet a USB scope will help greatly.

You need a BGA workstation to do anything with modern SoCs ...nothing else will suffice.

I have been known to use an electric skillet to reflow a board,in a pinch. I used a 16 dollar hot air gun from Harbor Freight to do SM once... just to see if it could be done.. It worked,sorta, blew the small SM parts off the board at first though. Some Kapton tape made it work but it was a mess. :-)


50 posted on 02/04/2014 6:05:53 PM PST by Bobalu (Happiness is a fast ISR)
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