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RadioShack's Conceptual Venture

Zacks Equity Research

In an attempt to revamp its retail business, RadioShack Corp. (RSH) has launched a unique next-generation store. The outlet has been designed to enhance the buying experience.

The new store is located in the posh locality of Manhattan and targets the affluent tech savvy customers. The store features all popular brands and products like Apple Inc.’s (AAPL) iPhones and iPads, Samsung Electronics’s Galaxy flagship products, to name a few. The products are also well supported with lightening fast data plans from the country’s two major carriers, namely, AT&T, Inc. (T) and Verizon Communication Inc. (VZ).

The customer gets all the leading brands under one roof, thus making it easier for them to compare each product. Moreover, they are assisted by sales staff, who possess concrete knowledge about the products.

RadioShack continues to face hard times as the company posted disappointing financial results for the first quarter of 2013, where both its top and bottom line fell short of the Zacks Consensus Estimate. This somber condition is mainly due to weakness in the company’s postpaid wireless business coupled with declining store footfall and adverse product mix.

By rolling out such stores in the country as well as abroad, RadioShack will not only attract more customers but will also improve its product mix by selling high-margin products to its customers. This will drive the bottom line.
Currently, RadioShack Corp. carries a Zacks Rank #5 (Strong Sell).

Headquartered in Fort Worth, Texas, RadioShack Corp. is one of the leading consumer electronics specialty retailers in the U.S., offering innovative products and services from the leading brands.

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