March 4, 2014
RadioShack Is Doomed (and So Is Retail)

As ingeniously self-deprecating as RadioShack’s Super Bowl commercial was, its finances are sadly even more proficient at making a mockery of the company. Shares fell by a delirious 24 percent after holiday sales came in way under its (already managed) expectations. Today the company announced that it will be closing 1,100 stores, leaving it with 4,000 brick-and-mortar locations in the U.S.

(Aside: How in the world are there still 5,000 RadioShacks? That’s three times more than Chipotle.)

RadioShack’s long slide coincides the steep ascendance of Amazon as America’s great brick-and-mortar destroyer. In 2003, Amazon and RadioShack each had about $5 billion in sales, as WSJ business editor Dennis Berman pointed out. Last year, Amazon had $75 billion to RadioShack’s $3.5 billion.

Some further comparison is illuminating: At the end of 2013, RadioShack had 5,000 brick-and-mortar stores with 27,500 employees and $3.5 billion in sales, which is $127,000 in sales per employee. Its website is the 1,066th most popular in the world. At the end of 2013, Amazon had zero brick-and-mortar stores with 117,300 employees (full- and part-time) and $75 billion in sales, which is $640,000 in sales per employee. Its website is the 5th most popular in the world. 
What are people still buying at RadioShack? 
Read more. [Image: Reuters]

RadioShack Is Doomed (and So Is Retail)

As ingeniously self-deprecating as RadioShack’s Super Bowl commercial was, its finances are sadly even more proficient at making a mockery of the company. Shares fell by a delirious 24 percent after holiday sales came in way under its (already managed) expectations. Today the company announced that it will be closing 1,100 stores, leaving it with 4,000 brick-and-mortar locations in the U.S.

(Aside: How in the world are there still 5,000 RadioShacks? That’s three times more than Chipotle.)

RadioShack’s long slide coincides the steep ascendance of Amazon as America’s great brick-and-mortar destroyer. In 2003, Amazon and RadioShack each had about $5 billion in sales, as WSJ business editor Dennis Berman pointed out. Last year, Amazon had $75 billion to RadioShack’s $3.5 billion.

Some further comparison is illuminating: At the end of 2013, RadioShack had 5,000 brick-and-mortar stores with 27,500 employees and $3.5 billion in sales, which is $127,000 in sales per employee. Its website is the 1,066th most popular in the world. At the end of 2013, Amazon had zero brick-and-mortar stores with 117,300 employees (full- and part-time) and $75 billion in sales, which is $640,000 in sales per employee. Its website is the 5th most popular in the world. 

What are people still buying at RadioShack?

Read more. [Image: Reuters]

1:55pm
  
Filed under: Business RadioShack Retail 
  1. cinnamoneclair reblogged this from theatlantic
  2. atrexi reblogged this from theatlantic and added:
    Jajajjaja que cosa era tu irea que cool @@@@@@
  3. vc22 reblogged this from theatlantic
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  10. fyahblaze reblogged this from marsofbrooklyn and added:
    well…everything must change i hope folks are able to find jobs at best buy
  11. sonkm3 reblogged this from theatlantic
  12. tblraris reblogged this from theatlantic
  13. marktuminello said: Still sad to see a once-successful business begin to slow down and maybe come to an end.
  14. discardedelectronics reblogged this from theatlantic and added:
    Remember when Radio Shack employees used to know stuff? Now it’s all about cellphones, house brand batteries, and janky...