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RadioShack Corp. Message Board

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  • timberlandko timberlandko Jun 19, 2002 9:55 AM Flag

    Why doesn't RSH sell software?

    Just a bit of additional info here, e-mailed to me this morning by a "donor who wishes to remain anonymous"

    "Timber - I cannot post on the Yahoo board for obvious reasons - but the reason we don't sell nintendo, x-box, etc at RS is because we don't have the floor space to carry all of the software - the margin is all in the software according to merchandising but they feel the space committment required would not exhibit a substantial enough risk/reward relationship for RS to be in that market. That is the "company" line ... "

    This makes perfect sense to me; given RS's dismal record of software sales, I can easily imagine store shelves full of outdated game titles gathering dust and successively marked-down clearance tags untill finally reaching "Discontinued/Devalued" status with resultant negative impact on P&L.

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