"Troubled RadioShack taps local flavor to rebuild business" by Taryn Luna | Globe Correspondent April 09, 2014
Struggling electronics retailer RadioShack Corp. is trying to rebuild its image in Boston, the city where the chain was founded in 1921 by two British immigrants.
The Texas-based company on Wednesday plans to unveil a redesign of its Downtown Crossing store that ditches the familiar red, black, and white color scheme for white walls and cabinets, stainless steel, and chestnut wood accents. And in a nod to the city’s coastal geography, the store includes nautical map wallpaper, an activity table built to resemble a ship’s bow, and sails hanging from the ceiling.
Beyond the new look, seven locations in the Boston area that will get makeovers in the next few months.
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The company is among a handful of retailers that have responded to poor financial performances with plans to close some locations and revamp others.
How can that be after five years of economic recovery?
But RadioShack’s plight is particularly dire — revenue fell 20 percent in the fourth quarter of 2013 compared with the same period the previous year, and the $400 million in losses last year dwarfed the $139 million deficit it reported in 2012.
Last month, RadioShack said it would close 1,100 stores — about one-fifth of its US locations. The company this week said it had not determined whether any of its 111 Massachusetts stores will shutter.
Some analysts and Wall Street investors, while encouraged by the turnaround attempt, are not convinced the chain can prosper again.
“The key is they have identified that it’s a tired brand, both in terms of what is has offered and how it looks,” said Scott Tilghman, a Boston-based senior analyst for B. Riley & Co. in Los Angeles. “The challenge is that this could have been done two or three years ago.”
Tilghman said competition in RadioShack’s core wireless phone category is increasing as companies like Best Buy Co. Inc. and Staples Inc. offer more phone deals.
Another challenge is that most people don’t think of RadioShack as a place to check out the latest gadgets. Store traffic is largely driven by shoppers looking for last-minute items — like adapter cables — or obscure products, Tilghman said.
Stuff they don't have, but will order online for you.
Of course, I could have done that. That's why I went to RadioShack. I wanted the part now.
The store still draws hobbyists such as amateur radio operators, but even that demographic has dwindled.
The $ignal is fading fa$t.
“My question that I still don’t have a satisfactory answer to is: how do you drive traffic?” Tilghman said.
The Downtown Crossing store, on School Street, is one of three unique concepts being rolled out by RadioShack. The other two are in New York and Fort Worth and the look of each is tailored to its location....
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I'm getting nothing but static now.
