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RadioShack Learns Apple Is the Meal That Eats You

5 March 2014 558 views 2 Comments

Like many retailers, RadioShack is having trouble finding its way in the post-Amazon world, but is there more to the story than that…

Electronics reseller RadioShack has made headlines of late because it plans to close over 1,000 stores. Like many retailers, RadioShack is having trouble finding its way in the post-Amazon world, but is there more to the story than that.

In the US, iPhone, iPad and iPod very much dominate. So, as a matter of necessity, RadioShack sells most if not all of Apple’s non-desktop products.

However, the company’s relationship with iPhone maker is complicated by the simple fact that Apple is also a direct competitor in retail. That said, RadioShack’s market share has declined markedly over the years as Apple has increased its piece of the retail electronics biz.

Like many retailers, RadioShack is having trouble finding its way in the post-Amazon world, but is there more to the story than that…

Further, according to MarketWatch, RadioShack has a smaller share of a declining market — retail electronics sales shrank from $109.9 billion in 2007 to $95.9 in 2013.

“The Shack” doesn’t publish what share of their sales come from Apple products. Nevertheless, RadioShack’s relationship with the iPhone maker must be, at best, bittersweet…

What’s your take?

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2 Comments »

  • Jeff Garner said:

    The real issue for Radio Shack, as has been the issue for them, is NOT Apple who does not discount their products, but Walmart and Best Buy. In fact Radio Shack has been in a tit-for-tat with these two retailers for years constantly matching their price changes and promotions.

    That said, Radio Shacks issues are FAR more complex and deserving far more scrutiny than has been provided for here. Their issues, largely driven by their slowness to adapt their store format and merchandising to changing customer demands. Store location has been another challenge where years ago Radio Shack located itself in small store plazas that have since falling out or favor and often into disrepair. They opened new stores in malls, but often malls that were not destination and again mirroring their plaza store format.

    In short Radio Shack didn’t evolve until it was too late and by then not even Apple could save them. To lay their demise at Apple’s feet, in ANY way, is missing the mark and fundamentally illustrates the lack of understanding that led to the situation Radio Shack is in today.

    IMHO!

  • the rocr (author) said:

    ‘Twas meant as an amusing aside only.

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