Radio Shack recently announced that it is entering Chapter 11 bankruptcy, closing thousands of locations, and re-engineering most of the others to include Sprint cell phone stores. I’m skeptical (per this RetailWire comment) about the brand’s future regardless:
A recent article about Radio Shack pointed out that it is vastly overstored, citing an example of six stores in a five-mile radius in one of its markets. Leaving up to 2400 out of 4000 locations in place doesn’t address that problem by itself.
The bigger question is whether a Sprint “inpost” is going to draw traffic effectively enough to salvage the brand. (And Sprint itself is not among the strongest cellular brands anyway.) Once a customer has finished buying or servicing a cell phone, is there anything else inside Radio Shack that he or she will want to buy?
Radio Shack’s perceived brand irrelevance to most shoppers isn’t going to solved overnight by this new direction…if it can be fixed at all.