Friday, August 22, 2014

NYT: "RadioShack in Need of Rewiring" $RSH

NYT article:

"Mr. Magnacca and his team have put a plan in place to try to turn around the brand, and fill its stores with unique, higher-margin merchandise... A display of Beats by Dr. Dre headphones, dotted with small rectangular mirrors, greets customers at the front of the store, where shoppers can test both the sound and the look. An array of phones and tablets are available for tapping and testing." Where is the higher margin? Nothing articulated here does anything to alleviate the pricing power issue set forth earlier in the article - each of those products is still insanely competitive from a price standpoint and can't be sold in a brick-and-mortar store at a price that will save RSH. Many consumers, like me, are likely to perhaps go to a RadioShack store to 'experience' a given product, determine what they want, then buy it online for 60% of whaat RadioShack is asking.

No comments: