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RadioShack Prepares Bankruptcy Filing

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Re: RadioShack Prepares Bankruptcy Filing

#201

Post by zackmorris »

I'm late to the game on this but Radio Shack has one thing the rest of us don't, and that's access to capital. I think they should sell the company to their employees and form a collective with borrowing power in order to fund some of the more compelling technologies that are sorely needed today like rooftop wifi meshnets or burner wimax cell phones that can be used to tether laptops for free. There are so many crowdfunded projects that would benefit from a technology co-op taking the place of institutional investors.

Then go back to their roots as a local store that keeps certain niche products in stock. For example, when I need parts from microchip.com, I should be able to have them sent to my local Radio Shack and pick them up the next day (if they aren't already there). So basically their business model would be to be a local subsidiary of amazon.com that specializes in up and coming technology. The information about who’s buying what and what they are building could be more valuable than sales.

I guess to summarize they would be a farmer’s market for technology, where people could buy shelf space and showcase their creations, which as far as I can tell doesn’t exist in most cities. We came close where I live during the Great Recession when big box stores were closing like crazy and the space was converted to bazaars. Unfortunately there were a lot more nicknacks than crafts because nobody had any money to buy anything. It would have been so awesome to be able to buy things like solar panels or hydroponics garden kits but usually we’d spend our money on a chair or whatever.

Re: RadioShack Prepares Bankruptcy Filing

#202

Post by gtjay »

porsupah wrote: post #199
gtjay wrote: post #88

Having moved to Australia in recent years, I was very happy to see that JayCar, their equivalent to Radio Shack, seemed to be doing quite well. This is judging by what I've seen of the stores in what is considered a fairly backwards part of Australia (Queensland). The difference seems to be two-fold. First, Jaycar didn't go through an insane expansion (there are only 12 or so locations per state). Second, they've gro…

Likewise, in the UK, the dozens of Maplin stores remain places where it's possible to pick up components for electronics projects, alongside the kinds of other electronic products you mention. Evidently, there does remain a place in the world for stores of this kind, whatever can be offered online.

That's interesting. The UK also has more protections for small contractors (e.g. electricians, welders, etc.). I wonder if that's the common thread (meaning it's basically impossible to replicate in the US) or if Radical Hack could have stayed alive if it had just doubled down.

The overgrowth factor shouldn't be ignored though. It's a particularly sad effect of MBA-culture and perverse incentives that so many perfectly viable retail outlets grow themselves to death. Krispy Kreme is the perfect example of a chain that was obviously working and did everything it could to kill itself with growth. I sympathize that everyone involved in those decisions made ones that were rational for them and their personal gains, it's just a sad outcome for the chain.

Re: RadioShack Prepares Bankruptcy Filing

#203

Post by ghaff »

canvia wrote: post #171
ghaff wrote: post #112

Earlier quoted context omitted.

A lot of things can work at small scale that don't work at Radio Shack public company scale. Example. There's a board game store in Harvard Square that has been there forever. I assume it must make enough money for its owners to have stayed in business all these years. That doesn't mean that opening hundreds or thousands of such stores across the country would be a brilliant business plan. The same applies to the ind…

There's a term for that: https://en.wikipedia.org/wiki/Lifestyle_business Lots of (good) restaurants fall into this category.

Yes, even though it's an abused term that covers everything from a thriving small-scale full-time business with reasonable hours, to making enough bucks to hang out on the beach for 6 months a year, to barely making it in spite of 80 hour weeks, to labors of love that fit in there someplace.

Re: RadioShack Prepares Bankruptcy Filing

#204

Post by jdietrich »

DanBlake wrote: post #147

Nobody seems to have a good answer for what RS should become to avoid shutting down. The most common answer is to go back to its roots and embrace the maker market and stock up on things like 3d printers, breadboards and arduinos. I think this is the wrong idea, since the market is nowhere near large enough to support the vast amounts of stores RS has. I think if I was the CEO, I would focus on being a boutique shop…

Here in the UK, Maplin Electronics are debt free and profitable with a fundamentally similar business model to the old Radio Shack. Piles of radio control cars and weather stations at the front of store, cables and miscellaneous electronics accessories in the middle, components at the back. Maplin thrive on their lack of focus - you go there when you need a Lighting cable or an RJ45 faceplate, and you leave with what you came for plus something you didn't know you even wanted.

It seems to me that the only real difference is the quality of management. Maplin were struggling in the 90s, but were bought out by a private equity firm who turned the business around. There were no radical changes in direction, just a lot of incremental improvements to their core business.

I think that Radio Shack have far too many stores, and the management is fixated on finding a silver bullet for the company's woes. The complaints I hear about Radio Shack seem to be mainly issues of basic merchandising and customer service - their stock is erratic and outdated, their staff are indifferent and poorly trained. If your basic pitch is "we know you can buy this stuff online for less, but we offer convenience and service" then you actually need to follow through on the latter.

Re: RadioShack Prepares Bankruptcy Filing

#205

Post by ghaff »

tod222 wrote: post #179
ghaff wrote: post #112

Earlier quoted context omitted.

A lot of things can work at small scale that don't work at Radio Shack public company scale. Example. There's a board game store in Harvard Square that has been there forever. I assume it must make enough money for its owners to have stayed in business all these years. That doesn't mean that opening hundreds or thousands of such stores across the country would be a brilliant business plan. The same applies to the ind…

You must be talking about The Games People Play[1]. Long ago I bought things there such as the D&D boxed set and the Chivalry & Sorcery[2] rules. Another purchase I made there was a Magic Cube, imported from Hungary before the worldwide release as Rubik's Cube. These first cubes were heavier than the widely-released ones[3]. Great store, glad that it's still around. [1] http://www.thegamespeopleplaycambridge.com/ [2]…

Yep. I'm not really in a board game crowd but I still look in from time to time.

Re: RadioShack Prepares Bankruptcy Filing

#206

Post by ansible »

ChickeNES wrote: post #185
rhino369 wrote: post #138

Earlier quoted context omitted.

You got the cause and effect backwards. They expanded into non-technical markets because the technical market was failing. >resistors, fuses, soldering equipment, breadboards, various controllers and sensors, hard drives, processors: everything I needed to assemble an electronics project, fix a computer, make something. Almost nobody uses any of these. Those who do it as a hobby and don't wanna pay corner store retai…

Actually the Microcenter near me (Chicago), has expanded their selection of electronic components significantly in the past couple of years. What once was one rack is now an entire wall, with Sparkfun, Adafruit, Parallax, and Seeedstudio stuff, Arduinos, Beaglebones, and Raspberry Pis, and plenty of resistors, transistors, and other individual parts.

Now we just need same day drone delivery for them and Fry's. That would be so handy.

Re: RadioShack Prepares Bankruptcy Filing

#207

Post by ghaff »

DanBlake wrote: post #162
morcheeba wrote: post #161

Earlier quoted context omitted.

While this is a cool idea for a store, does it really fit with the assets that Radio Shack has? Here's what I see they've got to work with: - lots of retail stores in crappy locations. There's no way I'll hear the difference between a Grado and a Sony when the juicer at Orange Julius is echoing down the hallway. It would be perfect for 3d printers, though. - Cheap, non-committed workers. I'm not sure it would be wort…

I think the point is, there current business model of catering to low end clientele is NOT working. They need to reinvent themselves and this is what I feel has the most legs of keeping them alive. The margin for high end goods is much more palatable than selling power strips. The long and the short of it is, RS needs to radically change everything about themselves and go for broke. Trying to do slow changes while ho…

Right. So close down the legacy business and start something new. Whether you do so within the existing corporate structure is for the lawyers and investment bankers to decide. Pop quiz: What's Woolworth's these days?

Re: RadioShack Prepares Bankruptcy Filing

#210

Post by bnolsen »

lanaius wrote: post #90
dragonwriter wrote: post #66

Earlier quoted context omitted.

> The only chance they had to stay relevant was to challenge the Best Buy's of the world, but they failed to do that. They tried -- back when what is now RadioShack was Tandy Corp. and Radio Shack was one of its units, it tried with the Incredible Universe stores -- but gave up because at the time their boutique Radio Shack stores were more profitable than their big-box Incredible Universe stores. Of course, for wide…

Boy did I ever love Incredible Universe. Must've gone there 20 times as a kid, don't think we ever bought a single item.

i bought some kitchen gadget at one. An interesting store, purple inside with just lots of strange things. Not surprised they didn't last.
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