Thursday, July 22, 2010

Radio Shack losing a customer

I'm a gadget freak. All my friends are going 'duh!'

I've been shopping at Radio Shack stores for 40+ years -- I remember when they were a catalog only, then they started their retail operation.

Radio Shack helped get the personal computer revolution started 'back in the day'. My first several computers were from Radio Shack.

But what I liked best was being able to go in there to buy parts so I could make or fix electronic stuff. Unfortunately that's no more.

In the past week I've gone in twice to buy something I've gotten there before.  And it's no longer offered. Instead, there are cell phones, a few cb's, and 'pop' electronic stuff.  It seems Radio Shack is trying to compete with Best Buy.  Ain't gonna succeed.

What the mba grad who decided to do this didn't understand is that while, yes, parts are a low margin item, they bring people in. Once in, we see something we've 'just gotta have' and buy it.

Remember the Sears Catalog?  When they did away with it, Sears headed towards bankruptcy. The brilliant Sears mba who decided THAT didn't realize that we'd sit at home, look through the catalog, and THEN head to the retail store to buy whatever, plus something on display we 'just hadta have'.  No catalog, no visit to the retail store, reduced sales.

Looks like history repeating itself.  If I owned Radio Shack's stock I'd be selling it.

1 comment:

  1. Just like Congress -- they have lost touch with their constituents (customers) and will be voted out!