Rat Shack Blues
February 21, 2006
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Posted by Aubrey Turner
It would appear that Radio Shack is having a bad time of it lately.
RadioShack Corp., coming off a quarter in which earnings plunged 62 percent, said it will close 400 to 700 stores and pare overhead costs as part of an 18-month turnaround effort.
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RadioShack executives capped a challenging week by unveiling a turnaround plan at a meeting with analysts and investors. Slow-selling merchandise will be replaced with more popular items, and outside consultants will examine every expense category to find ways of cutting costs.
Between bad earnings and a CEO forced to resign after lying on his resume, it’s looking pretty bad for them. I can’t help but wonder if their store experience doesn’t have something to do with it. I spent many years avoiding them over their demands for name/address for every purchase. When I finally went back I found that they were annoyingly pushy, trying to get you to buy the most expensive version of whatever you were seeking, or hawking those damn batteries. It got to the point where I would avoid them unless I knew for sure that they had the item in stock and there wasn’t anywhere else to get it. I also hated having the salesmen descend on me like a pack of sharks upon entering the store. I like to shop in peace, and I usually know what I’m after. It’s not like I need a lot of help to buy speaker wire or A/V cables. It comes across to me like they’re guarding access to the products and they have to test my knowledge to make sure I know what I want (while making sure to steer me to the most expensive item). Frankly, it’s a level of hassle I can do without.
Maybe if they made the store experience more friendly and less pressure-ridden perhaps more people would come back?
Categories: Random Ramblings
I have the same aversion to RShack, fueled by similar experiences at their stores. I suspect that the “shark pool/upsell” environment in the store is indicative of the corporate culture as a whole. (Outdated in retail, prevalent in used car sales.)
I regard RShack as an experience on par with a WalMart at Christmas. A different environment, to be sure, but just as senseless and irritating.
In the long ago Radio Shaft had actual electronic stuff available, xtals, wire, resistors, you now the stuff. Now they’ve got the same lame crap everyone else has except with lower quality and higher prices in stores that are packed to the rafters with cheap plastic Chinese junk and almost no maneuvering room on the showroom floor. Couple that with having to carry a bayonet to keep the floor sharks at bay while you decide what to buy makes me think long and hard before going into one of their shark pools.
Tell me about it. I used to be something of an electronics geek when I was a kid. I used to go to Radio Shack to buy electronic components for whatever I was fiddling with at the time.
Now they’ve got one little section of the store with these components, and it’s hidden behind a movable panel that has “regular” merchandise on it. You have to really know it’s there ahead of time. And their selection is pretty crappy. These days it looks like you have to go to Fry’s or a specialty store (if there’s one near you).
I read somewhere that often when a company builds a brand spanking new headquarters they are just a few years away from a major downturn or worse. There are several examples.
To all of that I’ll add: Never, ever buy anything from Radio Shack with a rebate attached. I picked up $800 worth of cell phones with $300 worth of rebates. Took me at least ten phone calls (including Better Business Bureau) and three full months to get my rebates.
Now when any merchant offers a rebate on an item, I deliberately avoid it.
On another note, are you going to vote for me, Aubrey? I’m running for Place 4 (against one of the ones who felt it unnecessary to let you vote on the library).
Jim
Jim,
I know from your previous writings (like the post on the art purchase)that you take a more libertarian approach to matters, and I like that. I’m interested in seeing your positions on other issues that are likely to come up. But so far, so good.