During earnings announcement one of the quarters last year Radio Shack used the poor showing by Sprint as an excuse why their own sales were down. Let's see what happens this time around.
6 months ago there were people here touting these comments as strong reasons to buy RS. It could only go up once the Target relationship begin to pay off.
We heard the same things when Verizon came on board. #1 cellular service provider in the country would result in much higher sales of not just phones but all the high margin accessories. Never happened, at least not so far.
Prior to that it was the introduction of the iPhones into the stores. The company couldn't miss with that one. Major coup for Radio Shack. Serious gains ahead. Except............ it all went nowhere just like the few customers who did come in and learned that only a few, very few, select stores actually carried the product.
So many predictions of future glory while completely ignoring the fundamental issues of poor inventory, inept middle and upper management and one of the single most alienated sales force in the entire country.
Do it all the time. Know what you are buying before you go it and don't go during the day when it is the most busy. After 7 or 8 the crowds disappear.
The $72 you save at WalMart will buy a car charger, a case and a basic bluetooth. You're in, you're out. No one bugging you for batteries, donations, personal information that has been declared illegal by the courts but RS ignores that, worthless extended warranties. No waiting at the counter to pay while the poor sale associate has to stop to answer a phone call about the poor numbers in the last 3 hours and what he plans on doing to change that.
You could have said the same thing several years ago when RS went into Target with their kiosks. Lots of applause by those with underwater stock positions claiming that NOW we were going to see the rebirth of the company and a major uptick in the stock price.
You have said the same thing when RS begin selling T-Mobile. Or when they dumped T-Mobile for Verizon. It's been over a year now since Verizon arrived yet we only hear that sales are continuing their long decline. The #1 cellular service in the country but Radio Shack is doing nothing with it?
What about the introduction of the iPhone to the stores? That was suppose to revitalize the company. Zilch. The same with the iPad. "I'm sorry but we actually don't carry them here in this store. But I would be happy to order you one online for next week delivery. We also can show you a great selection of really nice accessories while you are here." FAIL!
And how can we forget the masterful plan to get the company in gear for a modern world by firing all the long term store managers and humiliating them on the way out? Replace knowledgeable well paid people with those who know little to nothing and find themselves sometimes working for less than their employees. That sure did wonders. Look how well sales have done since that idea.
You're missing the important point of their retailing strategy. Yes, they are losing $30 on every iPhone but they will make that up with higher volume. LOL.
OK, here's the real plan and it is a good one that is clearly working. With each phone sale there is the golden opportunity to harass the customer for overpriced junky accessories and deceitful extended warranties. This alienates the customers so much that they never return which is what is happening at the moment. That means no future phone sales which means no more losing $30 a phone. Pure profit, baby.
What we see here is the winning team proving how to make a business work. Sharp management with strong backgrounds in accounting/fiances and, preferably, little to no customer experience means you get the cream of the crop calling the shots. That's why they make the big bucks.
I just read an article about the company rated the worse to work for by present and past employees. Dish. It mentioned that Dish beat even Radio Shack. So I hopped over to GlassDoor, the large online site that rates and discusses companies, and did a quick search on RS. It gets a 2.3 whereas Dish got a 2.2. Imagine one of those surveys where you pick a number, or star in this case, that best represents extremely dissatisfied, dissatisfied, neutral, satisfied, extremely satisfied. 2.3 sucks big time.
How have a lot of companies stayed in business for this long? Easy, by focusing on giving their customers value and service. Plus, treating their employees as valuable assets.
Starting in the 90s more and more companies begin moving from a people oriented style of business to one of pure numbers. Millions of often long term well trained employees were fired as increasing numbers of companies moved their production offshore so as to lower costs. It was also the time when salaries, or net worth, of the top strata of society begin to dramatically distance those of the middle and lower classes. With all of that came a virtual divorce between the top and bottom not only of money but in total life styles.
Dealing specifically with RS, it was a company that had served the communities very well for decades. People recognized the brand and the service they knew existed in the stores. All of this was destroyed with the arrival of former CEO Julian Day and those he brought in. RS suddenly became a number to be manipulated by those who have zero retail experience and, even worse, no understanding nor respect for the people who worked in the stores and their customers. The only real human emotion left was one of greed.
RS will not last another year. And it is not alone. The retail environment is full of major changes taking place of which online retailing is only a part of a larger picture. Our entire society is being torn apart by social and economic problems that have been building for several decades. The fact that the firms and their leaders on Wall Street could essentially destroy the financial system for their own gain and not a single one of them even charged with a crime is indicative of how truly serious the situation is. Large business and Washington are dancing to a tune that will bring nothing but further catastrophes. RS is really nothing more at this time than a minor foot note of what went wrong.
Make sure it is one of those nifty emergency radios that can be cranked to generate power. Or solar energy. Or two kinds of batteries. One warning though. Cranking those things for say, 5 minutes, gets you less than a minute of power for the radio and literally only seconds for the cell phone. Plus, there is no way in an end of the world settings that the handles are going to last very long as they feel very cheaply made.
BFE, you hit the nail right there. Once you go above the level of a store manager it becomes extremely rare to find anyone who has actual retail experience of working in a store. These people have little to no prior contact interacting with customers. How can you possibly create a viable sales environment if you don't know the attitudes, the likes and dislikes of the people you are suppose to be selling to?
This reminds me of the companies that are famous for stating that they don't have to talk to the customers since they already know what is best for them. Years ago I worked for an extremely well know franchise. When I started, visits from the company executives were conducted from the position of them asking us what our customers wanted and how we could best motivate our employees to be productive and happy.
Over the years the founding upper management retired and were replaced by strictly numbers people. Our regional meetings changed from one of friendliness and mutual respect to utter arrogance on the part of the regional and national management. Store employees were no longer rewarded and store managers were seen as stupid and worthless. We were actually told to our faces in one meeting how useless we were and that the company did not need ours nor the customers opinions. "You don't like it, then get out." Needless to say, this company went into a steep decline and was sold time and time again to larger firms that tried to somehow turn things around. They are still around although at a much reduced size and without the famous #1 spot to go that they enjoyed for decades. And all because of management who knew nothing about the people who sold their product nor the ones who were buying it.
"The RM isn't any better either - came over from Blockbuster and doesn't know his head from his behind about the stores or the products. Screams and yells at the DMs who then screams and yells at the SMs and SAs."
There are 26 regions but that RM sounds exactly like the one we had.
Why shouldn't Dave gloat? Most of the people fired or run out of RS were highly competent employees with years of valuable experience. And look what is left? So who turned out to be right in the end? The title alone of this thread says it all. Down, down, down.
i bet Dave's wishes he could win the Lotto, wait until the stock reaches $.15 or so, buy a controlling interest in the company, and then fire every one of the fools that came in with Day and Bevens with a YouTube video showing who they were and how they ruined a former major icon in the consumer electronics business.
Something that is not understood by certain people here is that the former long term employees of the company had a relationship that is rarely seen today. They, not Fort Worth, were the ones who made RS the success that it once was. They were the ones who often opened early and stayed late, off the clock. They were the ones who knew a wealth of information regarding everything from resistors to hard drives to the proper type of battery for a watch.
Few people are aware of how many items this company actually sells and the time it takes to truly learn the inventory and how different things in the stores are used and can relate to one another. To many a former manager these stories were like a second home or a wife. It was their lives and they gave it everything they had. To leave with honor is one thing but to leave with a boot print on your back and insults of how you are no longer of any value is another. I don't blame these people for their attitudes at all. They were right and the current management style over the last 7 years or so has destroyed the company.
lynngeoc, how many RS stores actually stock these three items on a permanent basis? Maybe 30%, if that. For a customer to walk in looking for a product and then being told that the store doesn't have any but can order the item online is a guaranteed customer who won't be back. Best Buy and WalMart stores all carry these IN their stores. Radio Shack designates certain stores to stock the items in limited quantity and then the other stores in the area are suppose to send the customer over or tell them it can be shipped over and picked up the next day or so. That doesn't cut it in today's world. To add insult to injury the poor sale associate is then suppose to waste the customer's time pushing some overpriced accessories for these iProducts that the customer wanted but can't get at the store.
I once had a customer come in that wasn't a teen in the 80s but probably in his 20s or so. He hands me an immaculate instruction booklet for a Optimus dual cassette player/recorder that he bought then and tells me he needs one of the rubber bands that helped turn the reels around. Obviously, we didn't carry that so I told him I would check online. No dice.
The guy went ballistic and started yelling about how Radio Shack HAD to carry the item since they sold the recorder. It was their OBLIGATION to stock the parts. Forever. I tired to explain, in a calm and slightly humorous way, that cassette players like that had been obsolete for decades. No matter. He just got madder and madder. Next he demanded to know the number of the regional manager to make a complaint. Then the number of corporate. As he leered at me with his best tough guy face he said, "You don't know who you are talking to. I get results." OK, what could I say? "How about we check to see if your phone is due for an upgrade and you can use that as a great storage device for music and pictures and so much more?" He stormed out. Some teens never grow up.
Tomorrow, Friday the 21st, is suppose to be the end of the world. So will you be long or short Radio Shack when the final moment arrives? Remember, this position is for eternity or at least until the next cycle begins.
I think the proper term is Native American.
Assuming you are right about RS being at $50 in ten years what is that adjusting for inflation and all the massive tax hikes that are coming down the line? Are what will the capital gains tax rate be? 90%?
The only thing that will clean up Washington will be a huge tidal wave that sweeps all the politicians, lawyers and lobbyists out to sea. And that would cause a huge amount of pollution.
Posting in all caps is like wearing a sign that says "Ignore me because I am stupid and refuse to follow proper etiquette". It is typically seen in people, men, who are in their late 50s or older and who never really got into computers, the Internet, and cool electronics until fairly late. People who think cool is having a land line phone you can carry around the house. Or go into Radio Shack looking for a cool Walkman and then get mad when told that no one, except totally uncool people, plays music that way any longer.
Cool people don't use the word cool. It really dates you in a seriously negative way. Cool people don't care you went to Woodstock or had a hippie VW bus. And they most definitely do not go to Radio Shack unless it is with their grandfather to humor him. And the word cool? The word is now sick or bad meaning just the opposite. Can you dig that? Right on! Power to the people. Up against the wall MF. Heavy. Trippy. Too much.