RadioShack shares hit low on downgrade, analyst cites Cingular ascause for the downgrade.

"Shares of RadioShack Corp. hit a 52-week low on Monday after an analyst
said the electronics retailer's transition to selling Cingular products
appeared to be "more difficult" than expected, and downgraded the stock."

"http://www.businessweek.com/ap/financialnews/D8GOJ1BG0.htm?campaign_id=apn_home_down&chan=db"

---

› See More: RadioShack shares hit low on downgrade, analyst cites Cingular ascause for the downgrade.

[POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]

In <[email protected]> on Mon, 03 Apr 2006 09:16:04
-0700, SMS <[email protected]> wrote:

>"Shares of RadioShack Corp. hit a 52-week low on Monday after an analyst
>said the electronics retailer's transition to selling Cingular products
>appeared to be "more difficult" than expected, and downgraded the stock."
>
>"http://www.businessweek.com/ap/financialnews/D8GOJ1BG0.htm?campaign_id=apn_home_down&chan=db"

Continuation of a long downhill slide by Radio Shack due to poor management in
a more challenging business environment.

--
Best regards, SEE THE FAQ FOR CINGULAR WIRELESS AT
John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>

In article <[email protected]>,
SMS <[email protected]> wrote:
>"Shares of RadioShack Corp. hit a 52-week low on Monday after an analyst
>said the electronics retailer's transition to selling Cingular products
>appeared to be "more difficult" than expected, and downgraded the stock."
>
>"http://www.businessweek.com/ap/financialnews/D8GOJ1BG0.htm?campaign_id=apn_home_down&chan=db"

Anyone who grew up with Radio Shack would not recognize the store in its
present reincarnation. It appears to be positioned as a "Circuit City
Lite", but often situated in the same place where other electronics
discounters carry the same stuff, have more variety, and usually at lower
prices. Granted, you can't make big profits selling resistors and diodes
in this market anymore, but even taking that into account ... I have fewer
and fewer reasons to visit Radio Shack with each passing month.

Mike S. wrote:

<snip>

> Anyone who grew up with Radio Shack would not recognize the store in its
> present reincarnation. It appears to be positioned as a "Circuit City
> Lite", but often situated in the same place where other electronics
> discounters carry the same stuff, have more variety, and usually at lower
> prices. Granted, you can't make big profits selling resistors and diodes
> in this market anymore, but even taking that into account ... I have fewer
> and fewer reasons to visit Radio Shack with each passing month.

The reason I posted this is because, at least in my area (San Francisco
Bay Area), the Radio Shack managers and franchisees have been livid over
the lost revenue in wireless sales since Radio Shack stopped selling
Verizon, and started selling Cingular. There was a report in February
that said pretty much the same thing, but now, with three months of
sales, the evidence is more concrete.

Radio Shack became too dependent on the huge profits from signing up new
wireless customers. Just as in the past they were too dependent on
whatever new market they fell into, be it CB radios, home computers, etc.

I agree entirely. It is a company that has just not moved with the
times. I suspect that most of their customers are old timers who have
not got up to speed with the idea of online purchases, and are yet to
discover Best Buy and Circuit City. The only time I've ventured into
Radio Shack were when I find myself short of a resistor and dont want
to justify spending $5 postage/packing for a 5cent component! So
instead, I spend $1.50 in Radio Shack. Prices suck, products suck.

pstnly wrote:
> I agree entirely. It is a company that has just not moved with the
> times. I suspect that most of their customers are old timers who have
> not got up to speed with the idea of online purchases, and are yet to
> discover Best Buy and Circuit City. The only time I've ventured into
> Radio Shack were when I find myself short of a resistor and dont want
> to justify spending $5 postage/packing for a 5cent component! So
> instead, I spend $1.50 in Radio Shack. Prices suck, products suck.

People still go there to buy an occasional cable or connector or odd
battery, but that's obviously not enough to stay in business. Also, they
really over-expanded. There were once six stores within a ten minute
drive of my house, and four of them have closed. The mall stores seem to
have done the poorest.

"http://www2.townonline.com/wellesley/businessNews/view.bg?articleid=461542"

[POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]

In <[email protected]> on Mon, 03 Apr 2006 10:44:22
-0700, SMS <[email protected]> wrote:

>Mike S. wrote:
>
><snip>
>
>> Anyone who grew up with Radio Shack would not recognize the store in its
>> present reincarnation. It appears to be positioned as a "Circuit City
>> Lite", but often situated in the same place where other electronics
>> discounters carry the same stuff, have more variety, and usually at lower
>> prices. Granted, you can't make big profits selling resistors and diodes
>> in this market anymore, but even taking that into account ... I have fewer
>> and fewer reasons to visit Radio Shack with each passing month.
>
>The reason I posted this is because, at least in my area (San Francisco
>Bay Area), the Radio Shack managers and franchisees have been livid over
>the lost revenue in wireless sales since Radio Shack stopped selling
>Verizon, and started selling Cingular.

Actually just another made up fantasy of yours.

>There was a report in February
>that said pretty much the same thing,

Nope.

>but now, with three months of
>sales, the evidence is more concrete.

Wrong on that too. The actual evidence is that Radio Shack dumped Verizon in
favor of Cingular due to poor results in 2005.

>Radio Shack became too dependent on the huge profits from signing up new
>wireless customers. Just as in the past they were too dependent on
>whatever new market they fell into, be it CB radios, home computers, etc.

Radio Shack is simply the victim of its own mismanagement.

--
Best regards, SEE THE FAQ FOR CINGULAR WIRELESS AT
John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>

"John Navas" <[email protected]> wrote in message
news:[email protected]...
> [POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]
>
> In <[email protected]> on Mon, 03 Apr 2006 10:44:22
> -0700, SMS <[email protected]> wrote:
>
>>Mike S. wrote:
>>
>><snip>
>>
>>> Anyone who grew up with Radio Shack would not recognize the store in its
>>> present reincarnation. It appears to be positioned as a "Circuit City
>>> Lite", but often situated in the same place where other electronics
>>> discounters carry the same stuff, have more variety, and usually at
>>> lower
>>> prices. Granted, you can't make big profits selling resistors and diodes
>>> in this market anymore, but even taking that into account ... I have
>>> fewer
>>> and fewer reasons to visit Radio Shack with each passing month.
>>
>>The reason I posted this is because, at least in my area (San Francisco
>>Bay Area), the Radio Shack managers and franchisees have been livid over
>>the lost revenue in wireless sales since Radio Shack stopped selling
>>Verizon, and started selling Cingular.
>
> Actually just another made up fantasy of yours.

Not according to ALL published reports- care to post something to indicate
otherwise?

>
>>There was a report in February
>>that said pretty much the same thing,
>
> Nope.

Yes there was- sticking your head in the sand does not make it untrue.

>
>>but now, with three months of
>>sales, the evidence is more concrete.
>
> Wrong on that too. The actual evidence is that Radio Shack dumped Verizon
> in
> favor of Cingular due to poor results in 2005.

The actual evidence is that Verizon Dropped Radio Shack- at least try to get
your facts straight, moron.

>
>>Radio Shack became too dependent on the huge profits from signing up new
>>wireless customers. Just as in the past they were too dependent on
>>whatever new market they fell into, be it CB radios, home computers, etc.
>
> Radio Shack is simply the victim of its own mismanagement.
>

Then you are admitting that taking on Cingular was a bad management
decision. Thanks for agreeing.

"John Navas" <[email protected]> wrote in message
news:[email protected]...
> [POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]
>
> In <[email protected]> on Mon, 03 Apr 2006 09:16:04
> -0700, SMS <[email protected]> wrote:
>
>>"Shares of RadioShack Corp. hit a 52-week low on Monday after an analyst
>>said the electronics retailer's transition to selling Cingular products
>>appeared to be "more difficult" than expected, and downgraded the stock."
>>
>>"http://www.businessweek.com/ap/financialnews/D8GOJ1BG0.htm?campaign_id=apn_home_down&chan=db"
>
> Continuation of a long downhill slide by Radio Shack due to poor
> management in
> a more challenging business environment.

Rubbish.

SMS wrote:
> pstnly wrote:
>
>> I agree entirely. It is a company that has just not moved with the
>> times. I suspect that most of their customers are old timers who have
>> not got up to speed with the idea of online purchases, and are yet to
>> discover Best Buy and Circuit City. The only time I've ventured into
>> Radio Shack were when I find myself short of a resistor and dont want
>> to justify spending $5 postage/packing for a 5cent component! So
>> instead, I spend $1.50 in Radio Shack. Prices suck, products suck.
>
>
> People still go there to buy an occasional cable or connector or odd
> battery, but that's obviously not enough to stay in business. Also, they

Yeah, that's pretty much what I use them for. Cheap cables and sometimes a weird sized battery.
Best Buy/Circuit City charge exorbitant prices for cables! Though I have noticed when I've been in
RS that they have more phone selections and cheaper phone prices than a Cingular store.

-Jason

"Mike S." <[email protected]> wrote in message
news:[email protected]...
>
> In article <[email protected]>,
> SMS <[email protected]> wrote:
>>"Shares of RadioShack Corp. hit a 52-week low on Monday after an analyst
>>said the electronics retailer's transition to selling Cingular products
>>appeared to be "more difficult" than expected, and downgraded the stock."
>>
>>"http://www.businessweek.com/ap/financialnews/D8GOJ1BG0.htm?campaign_id=apn_home_down&chan=db"
>
> Anyone who grew up with Radio Shack would not recognize the store in its
> present reincarnation. It appears to be positioned as a "Circuit City
> Lite", but often situated in the same place where other electronics
> discounters carry the same stuff, have more variety, and usually at lower
> prices. Granted, you can't make big profits selling resistors and diodes
> in this market anymore, but even taking that into account ... I have fewer
> and fewer reasons to visit Radio Shack with each passing month.
>
>

I was a RS store manager from '71-'74, when Citizens Band Radios were all
the rage. Back then Radio Shack emulated Sears, with virtually every item
sold having the Radio Shack brand name.

Their stereo components were adequate, at best. The high end receivers were
rebadged Hitachis, and they sold a couple of West German turntables by
Miracord, with Radio Shack branded cartridges by Shure. They were not the
V-15 Type III, that the high end audio dealers carried, but some lesser
model, which Radio Shack represented as being "top-of-the-line."

Their CB radios were junk, not like the ones manufactured by Johnson, but RS
had stores everywhere, and they had a certain band of followers. They
always got their customers' names and addresses whenever a purchase, however
insignificant, was made, and they sent out monthly sales flyers and offered
free catalogs every August. I haven't seen a monthly flyer in many years,
and last time I asked for a "free catalog," they told me I had to pay. I
declined.

Without that catalog in the hands of their customers, their sales dropped
through the floor. I remember absolutely that customers came in to the
store with a specific item in mind--and they often had the catalog number
when they asked for it. Sure, we tried to sell accessories or upsell the
order to something better, but it was the CATALOG that got the customer into
the store in the first place. We didn't have a high percentage of browsers
that turned into impulse buyers, like Best Buy or Circuit City has today.
Part of the problem was that the stores were all small--little electronics
boutiques--not the "big box" stores that invited browsing. Customers were
reluctant to walk in because they were within sight of the store manager all
the time, and they felt uncomfortable just looking and then leaving without
making a purchase. The stores were set up to encourage customers to walk in
with an intention to make a specific purchase.

And RS always gave out frivolous premiums, like their free
"Battery-of-the-Month" card (how silly! Maybe Wally & The Beaver came down
the store to get their free transistor radio 9-volt battery every month, but
that was back in the days when they had "transistor radios.") Every fall
they offered a cheap 'Five-Cell Flashlight," as an inducement to get people
to come out for their free catalog (and we were expected to turn those "free
flashlight" customers into buyers of the 5 D-Cells that were needed to make
the flashlights work).

There was no prestige in being a Radio Shack store manager--just 54-60 hour
weeks (and that was when their stores were closed on Sundays). It was
drudgery, and we kept being made fun of for selling third-tier goods, rather
than the name brands that were advertised in the audio magazines.

The combination of selling resistors along with "high-end" high fidelity
components was not very sound. Buyers didn't feel good about buying audio
components from the same place that sold batteries, diodes and cheap (and
illegal) telephones to hobbyists.

Once the big box stores began selling "real" audio (and video) components,
RS looked pretty dowdy by comparison. What really killed them were those
"Tandy" computers. They even opened up a line of stores dedicated to
selling, installing and servicing Tandy computers and Tandy business
telephone systems. That lasted only a few years, then they all closed. No
respectable business would be caught dead with computers bearing the name
"Tandy." They were always below spec when compared to IBM. And I still
remember when Radio Shack computers had CASSETTE RECORDERS, rather than hard
drives or floppy drives!

They sold toys, under the guise of professional equipment, and their
customers were mainly truckers, basement hobbyists and uneducated tinkerers.
They have never been able to shake off that reputation. Even today, their
managers, district managers and regional managers are primarily high-school
educated folks. No MBAs or engineers work at Radio Shack!

They have been eclipsed by better competitors, and I believe that they will
wither and eventually die a natural death. I read recently that they are
closing a large number of stores this year.

"Jeremy" <[email protected]> wrote in message
news:aYgYf.4512$e11.4384@trnddc02...
>
> "Mike S." <[email protected]> wrote in message
> news:[email protected]...
>>
>> In article <[email protected]>,
>> SMS <[email protected]> wrote:
>>>"Shares of RadioShack Corp. hit a 52-week low on Monday after an analyst
>>>said the electronics retailer's transition to selling Cingular products
>>>appeared to be "more difficult" than expected, and downgraded the stock."
>>>
>>>"http://www.businessweek.com/ap/financialnews/D8GOJ1BG0.htm?campaign_id=apn_home_down&chan=db"
>>
>> Anyone who grew up with Radio Shack would not recognize the store in its
>> present reincarnation. It appears to be positioned as a "Circuit City
>> Lite", but often situated in the same place where other electronics
>> discounters carry the same stuff, have more variety, and usually at lower
>> prices. Granted, you can't make big profits selling resistors and diodes
>> in this market anymore, but even taking that into account ... I have
>> fewer
>> and fewer reasons to visit Radio Shack with each passing month.
>>
>>
>
> I was a RS store manager from '71-'74, when Citizens Band Radios were all
> the rage. Back then Radio Shack emulated Sears, with virtually every item
> sold having the Radio Shack brand name.
>
> Their stereo components were adequate, at best. The high end receivers
> were rebadged Hitachis, and they sold a couple of West German turntables
> by Miracord, with Radio Shack branded cartridges by Shure. They were not
> the V-15 Type III, that the high end audio dealers carried, but some
> lesser model, which Radio Shack represented as being "top-of-the-line."
>
> Their CB radios were junk, not like the ones manufactured by Johnson, but
> RS had stores everywhere, and they had a certain band of followers. They
> always got their customers' names and addresses whenever a purchase,
> however insignificant, was made, and they sent out monthly sales flyers
> and offered free catalogs every August. I haven't seen a monthly flyer in
> many years, and last time I asked for a "free catalog," they told me I had
> to pay. I declined.
>
> Without that catalog in the hands of their customers, their sales dropped
> through the floor. I remember absolutely that customers came in to the
> store with a specific item in mind--and they often had the catalog number
> when they asked for it. Sure, we tried to sell accessories or upsell the
> order to something better, but it was the CATALOG that got the customer
> into the store in the first place. We didn't have a high percentage of
> browsers that turned into impulse buyers, like Best Buy or Circuit City
> has today. Part of the problem was that the stores were all small--little
> electronics boutiques--not the "big box" stores that invited browsing.
> Customers were reluctant to walk in because they were within sight of the
> store manager all the time, and they felt uncomfortable just looking and
> then leaving without making a purchase. The stores were set up to
> encourage customers to walk in with an intention to make a specific
> purchase.
>
> And RS always gave out frivolous premiums, like their free
> "Battery-of-the-Month" card (how silly! Maybe Wally & The Beaver came
> down the store to get their free transistor radio 9-volt battery every
> month, but that was back in the days when they had "transistor radios.")
> Every fall they offered a cheap 'Five-Cell Flashlight," as an inducement
> to get people to come out for their free catalog (and we were expected to
> turn those "free flashlight" customers into buyers of the 5 D-Cells that
> were needed to make the flashlights work).
>
> There was no prestige in being a Radio Shack store manager--just 54-60
> hour weeks (and that was when their stores were closed on Sundays). It
> was drudgery, and we kept being made fun of for selling third-tier goods,
> rather than the name brands that were advertised in the audio magazines.
>
> The combination of selling resistors along with "high-end" high fidelity
> components was not very sound. Buyers didn't feel good about buying audio
> components from the same place that sold batteries, diodes and cheap (and
> illegal) telephones to hobbyists.
>
> Once the big box stores began selling "real" audio (and video) components,
> RS looked pretty dowdy by comparison. What really killed them were those
> "Tandy" computers. They even opened up a line of stores dedicated to
> selling, installing and servicing Tandy computers and Tandy business
> telephone systems. That lasted only a few years, then they all closed.
> No respectable business would be caught dead with computers bearing the
> name "Tandy." They were always below spec when compared to IBM. And I
> still remember when Radio Shack computers had CASSETTE RECORDERS, rather
> than hard drives or floppy drives!
>
> They sold toys, under the guise of professional equipment, and their
> customers were mainly truckers, basement hobbyists and uneducated
> tinkerers. They have never been able to shake off that reputation. Even
> today, their managers, district managers and regional managers are
> primarily high-school educated folks. No MBAs or engineers work at Radio
> Shack!
>
> They have been eclipsed by better competitors, and I believe that they
> will wither and eventually die a natural death. I read recently that they
> are closing a large number of stores this year.
>
As a former Radio Shack salesman, I remember selling huge volumes of low
margin, low priced junk and a few cutting edge devices; portable calculators
at 269.95 each - 4 "AAs" AND 2 9-Volt batteries w/ add, subtract, multiply,
divide - no memory, no % key, no scientific functions. We were the only
place in town to buy the things and sold between 65K and 100K gross sales
per month in a town of under 100000 people. Audio sales dropped off when
"Playback" (now defunct) opened their doors. I also owned "Trash 80"
computers, when IBM PC Jrs were 5000 bucks.

To this day, I still pick up resistors, caps and assorted "parts" that I
need in small quantities in a hurry, but with the end of the catalog and the
advent of Best Buy and Circuit City, Radio Shack has lost its mass market
appeal. Hobbyists can now buy online from a host of sources and if the
general public can compare all the wireless brands in one stop at the big
box locations,and shop for everything from audio, video and computers to
washers and dryers at the same place, why go across the street to RS?

I agree with Jeremy, Tandy Corp's days are numbered without some kind of
paradigm shift in their market.

Mark
(Who remembers Allied Radio)

[POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]

In <aYgYf.4512$e11.4384@trnddc02> on Mon, 03 Apr 2006 22:02:46 GMT, "Jeremy"
<[email protected]> wrote:

>They have been eclipsed by better competitors, and I believe that they will
>wither and eventually die a natural death. I read recently that they are
>closing a large number of stores this year.

<http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=...>

LIFTING THE LID: RadioShack under pressure after CEO admission
Fri Feb 17, 2006 6:48 PM ET

Senior executives then launched a roughly 3-hour long presentation,
broadcast over the Internet, discussing the earnings results and
turnaround plan, which could cost up to $100 million and close up to
700 stores.

--
Best regards, SEE THE FAQ FOR CINGULAR WIRELESS AT
John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>

Mark W. Oots wrote:

<snip>

> I agree with Jeremy, Tandy Corp's days are numbered without some kind of
> paradigm shift in their market.

They need "the next big thing." Cellular, with its huge bonuses for new
customers, just couldn't have continued forever. Verizon just got tired
of paying those spiffs to Radio Shack, when there were so many more
economical ways to distribute their products.

> Mark
> (Who remembers Allied Radio)

Remember when Allied and Radio Shack "Got Married" and send out free
dollar coupons as the wedding gift!

Allied Electronics is still around actually, as a subsidiary of some
other company. I actually ordered something from them not too long ago.

The real question is who remembers Olson Electronics and Lafayette Radio
Electronics? Olson gave away free pearls for every $10 you spent.

At least Jameco, formerly James Electronics, has survived. I bought
mail-order from them in the early 1970's, then worked directly across
the street from them when I moved to California.

"SMS" <[email protected]> wrote in message
news:[email protected]...
> People still go there to buy an occasional cable or connector or odd
> battery, but that's obviously not enough to stay in business. Also, they
> really over-expanded. There were once six stores within a ten minute drive
> of my house, and four of them have closed. The mall stores seem to have
> done the poorest.

I went to two different stores awhile back for some 50 ohm coax, acouple
pl259 connectors and something else. Neither store had any of it. Radio
Shack is of no further use to me.