RadioShack is a brand name that we are all familiar with, but how many of us have actually walked into one of their retail locations in the last few years, let alone even buy anything?
I’m guessing this question didn’t apply much to anyone’s personal buying and spending habits, since everything RadioShack sells in their stores can be purchased easily at many of the other big retailers such as BestBuy, Walmart and Target.
When I personally think of RadioShack, I think about the 80s… times were much simpler then. There was no internet and I would visit the store with my dad. We would check out the cool electronics they had and maybe even pick up a long extension cord for the phone on the wall or some batteries.
This is probably what most people think of when they hear “RadioShack.”
Apparently we aren’t the only ones who felt this way. RadioShack themselves even used some good money during the SuperBowl to air a commercial expressing the dire need for them to re-brand themselves and its stores.
The question now for RadioShack is… is it too late?
RadioShack to Close Over 500 Retail Locations
Not only will RadioShack be spending a lot of time and money on re-branding itself and its stores but are also closing a bunch of existing locations. This only makes sense for an organization that is already having a tough time dealing with the 4,300 stores they already have in operation.
According to people familiar with the matter, RadioShack is planning to close around 500 locations in the coming months. It isn’t clear which of RadioShack’s roughly 4,300 stores will be closed and when exactly the closings will begin. The people familiar with the matter noted that it isn’t unusual for companies to close stores when going through a restructuring. (source: WSJ)
The commercial from RadioShack was awesome and it related with everyone who was a child, teen or young adult in the 80s. The RadioShack of today doesn’t portray the same brand and necessity that it used to be, however.
How many times have you seen a RadioShack in a mall and seen it packed with customers? Yet, stores like Apple are always packed!
It will be interesting to see how the RadioShack re-brands itself and if they can bring back the attraction and necessity they once had. The key focus here should be on adapting their business to the internet and relying less on retail locations (which it looks like they are starting to do).
However, as stated in the WSJ article, the company would still like to have 4,000 plus stores in their network.
The Importance of Keeping Your Brand Alive
RadioShack has an interesting and complex situation in front of them. Not only is its brand name well recognized but they have thousands of retail locations that they need to get people into (also to experience after the re-brand).
Super Bowl commercials are a great way to spread awareness, but they are also expensive. RadioShack now needs to make sure they have a “cool” brand like Apple that people not only relate with but also want to pay a premium price for.
Apple stores are just cool to be in. It would be great to see RadioShack find a lot of success with its new stores and re-branding, but it will be an uphill challenge.
In addition to everything else RadioShack has going on, they will need to continue to focus their efforts on social media, building out their Facebook and Twitter accounts with great content and funneling users back to their online store. Should the retail business end up not working out for the company, they can always cut their losses and fall back on their Web site and brand name that is still known throughout the world.
In the end, it all comes back to the power of the brand that they have spent so many years to build up and what message they end up using to keep it alive and well.
To learn more about how to keep your organization and brand ahead of the competition at all times and always getting your message in front of the right people, call Brand.com for a free consultation today.