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Old 01-19-2015, 12:20 AM
 
5,445 posts, read 4,418,113 times
Reputation: 14992

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Quote:
Originally Posted by oldtrader View Post
There is a lot more to closing a store than the posters like this one realize. There are government mandates things to consider. Severance pay for employees. Lease buyouts. Creditors to work things out with, before you can just haul off the merchandise. Etc. Etc.

When you only want to close part of the stores in a chain, it is difficult to do if the company has financial problems, as in closing those stores you don't frighten creditors who will demand to be paid now, which could force you into bankruptcy. In this situation, it can cost you a lot of money to close a store due to all it triggers into being dealt with first.
The creditors knew what was going on. They knew RS planned on closing 1100 stores so there was no surprise. As discussed, lease buyouts and severance would be a drop in the bucket in the grand scheme of the money RS is hemmoraging. I stand by that this is nothing but the higher ups milking this for every dime they can before the entire company folds on itself because they truly know that there is a 0% change of recovery.
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Old 01-19-2015, 10:01 PM
 
Location: Hiding from Antifa?
5,836 posts, read 3,782,775 times
Reputation: 5015
The only direction RS could have gone was to close down all the small stores and open up regional mega stores in the same model as Fry's. It wasn't their fault that electronics became disposable as opposed to fixable. They tried to respond by dropping the components from their stock and trying to become the low end version of Best Buy with mini stores on every corner. Didn't work. They would have been better off putting a drive through lane with a Starbucks in one corner of their stores. Speaking of Starbucks, what do you think the over/under will be for a Starbuck taking up shop in a closed down Radio Shack building near you?

There are still some people who would have patronized Radio Shack if they had kept their hobbyist products. Those people would still travel a little distance out of their way to see if RS had what they need. But, they would drive more than an hour out of their way to go to a Fry's first, once they have had a chance to see what Fry's is all about.
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Old 01-20-2015, 02:52 AM
 
Location: SF Bay Area
14,330 posts, read 19,043,671 times
Reputation: 18436
Quote:
Originally Posted by headingtoDenver View Post
This is really no surprise to me. Any time I walk past or drive past a RS, there is never anyone in there.

RadioShack may be near bankruptcy - Jan. 14, 2015

The last time I went into a RS was about 6 months ago. Prior to that, it had been MANY years. I went in to see if they had clips to attach coax cable to the wall. Basically a half hoop with a nail on one end. The electronic component section which use to be the pride and joy of RS was basically non-existent. They didn't have my clips so I went to Home Depot. There were plenty there.

The thing that bothered me in the article above is that they don't have the money to close stores. I'm definitely no business wiz, but why does it cost so much money to close a store? You walk in, tell everyone that tomorrow is your last day. You have a truck pick up all the remaining merch and drive it back to a RS warehouse. The next day, the doors are locked and the store is closed. Businesses close doors all the time. I've never heard a business owner say they don't have the money to close the doors. Don't confuse this with, I cannot close my business because then I can't pay my bills, that is completely different.

"The struggling electronics retailer has been trying to close 1,100 of its 5,000 stores since March, but it's an expensive undertaking. It only came up with enough cash to close 175 stores through the end of October. "

What do you all think?
I think exactly what it says. They are a struggling electronics retailer. They'd like to close more stores, but don't have the money to do so, so they're only closing 175 stores until they find the money to close more. Nothing complicated about it.
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Old 01-20-2015, 08:43 AM
 
Location: Los Angeles County
11,094 posts, read 9,042,198 times
Reputation: 29104
Spending 8 million on the SuperBowl Ad last year didn't help the bottom line either.
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Old 01-20-2015, 09:11 AM
 
Location: Blue Ridge
20,900 posts, read 22,740,288 times
Reputation: 8641
Quote:
Originally Posted by Cruzincat View Post
The only direction RS could have gone was to close down all the small stores and open up regional mega stores in the same model as Fry's. It wasn't their fault that electronics became disposable as opposed to fixable. They tried to respond by dropping the components from their stock and trying to become the low end version of Best Buy with mini stores on every corner. Didn't work. They would have been better off putting a drive through lane with a Starbucks in one corner of their stores. Speaking of Starbucks, what do you think the over/under will be for a Starbuck taking up shop in a closed down Radio Shack building near you?

There are still some people who would have patronized Radio Shack if they had kept their hobbyist products. Those people would still travel a little distance out of their way to see if RS had what they need. But, they would drive more than an hour out of their way to go to a Fry's first, once they have had a chance to see what Fry's is all about.
Radio shack doesn't think that way and Fry's had the ability to learn from other's failures to create its business model. Radio Shack tried the big box store direction with Computer City and Incredible Universe.
Both crashed and burned because they tried to run them like Radio Shack stores which had high daily margins.

Computer City - Wikipedia, the free encyclopedia

Incredible Universe - Wikipedia, the free encyclopedia


One simply has to go through their old catalogs to see the magnitude of items they brought to market before anyone else. They carried numerous items that allowed them to be in multiple niche markets.

Radio Shack Catalogs - General Catalogs
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Old 01-20-2015, 12:45 PM
 
Location: Hiding from Antifa?
5,836 posts, read 3,782,775 times
Reputation: 5015
Quote:
Originally Posted by Pruzhany View Post
Radio shack doesn't think that way and Fry's had the ability to learn from other's failures to create its business model. Radio Shack tried the big box store direction with Computer City and Incredible Universe.
Both crashed and burned because they tried to run them like Radio Shack stores which had high daily margins.
Problem was they didn't go far enough. You could still drive from one Circuit City to another inside a half hour. And they did not maintain the components, like Fry's does, for repairs. The hobbyist was still left out. Fry's gets the people looking for appliances and such, but still meets the hobbyists' needs.
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Old 01-20-2015, 01:18 PM
 
Location: Blue Ridge
20,900 posts, read 22,740,288 times
Reputation: 8641
Quote:
Originally Posted by Cruzincat View Post
Problem was they didn't go far enough. You could still drive from one Circuit City to another inside a half hour. And they did not maintain the components, like Fry's does, for repairs. The hobbyist was still left out. Fry's gets the people looking for appliances and such, but still meets the hobbyists' needs.
Circuit City was not Computer City
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Old 01-20-2015, 01:24 PM
 
2,459 posts, read 4,680,087 times
Reputation: 4403
This brings me great joy. I'm a former employee (albeit a long time ago) and the last time I was in one of their stores, I left fuming. Asked the guy for a power adapter and he hands me a surge protector.

Over priced, moronic employees, with a completely clueless group of people running it. Like others, I can't believe they survived this long.
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Old 01-20-2015, 01:27 PM
 
Location: Hiding from Antifa?
5,836 posts, read 3,782,775 times
Reputation: 5015
Quote:
Originally Posted by Pruzhany View Post
Circuit City was not Computer City
Sorry. Missed that! Never had one in my area.
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Old 01-20-2015, 01:51 PM
 
Location: NYC
11,841 posts, read 7,738,294 times
Reputation: 12824
I think RS is mismanaged. They have the brand name to reinvent themselves but they haven't. They are trying to mimmick what is currently hot or selling but there already exist Best Buy or Walmart and Amazon that you can buy electronics cheap.

The need to create a niche or invent something new. There are tons of these iphone repairs shops or place you can help people customize your phones and instead of doing that all they do is sell phones like all these other mall booths.

The other way is become like Brookstone, which is doing reasonable better.
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