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  1. #1
    SMS
    Guest
    "http://www.ajc.com/business/content/business/stories/0831radioshack.html"

    "Radio Shack has been stung by sluggish sales and has been slow to
    adjust to the loss of Verizon Wireless."

    ("http://www.thestreet.com/_googlen/newsanalysis/retail/10303115.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA")





    "Tug on anything at all and you'll find it connected to everything else
    in the universe." John Muir



    See More: ""You've got mail! ...and no job!" Radio Shack fires Employees viaE-Mail.




  2. #2
    John Navas
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employees via E-Mail.

    On Fri, 01 Sep 2006 10:16:13 -0700, SMS <[email protected]>
    wrote in <[email protected]>:

    >"http://www.ajc.com/business/content/business/stories/0831radioshack.html"
    >
    >"Radio Shack has been stung by sluggish sales and has been slow to
    >adjust to the loss of Verizon Wireless."
    >
    >("http://www.thestreet.com/_googlen/newsanalysis/retail/10303115.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA")


    "And now for the rest of the story:"

    RadioShack has been stung by sluggish sales and has been slow to
    adjust to the loss of Verizon Wireless -- a joint venture of Verizon
    (VZ - commentary - Cramer's Take) and Vodafone (VOD - commentary -
    Cramer's Take) -- as its cell phone service partner. Cingular,
    co-owned by AT&T (T - commentary - Cramer's Take) and BellSouth (BLS
    - commentary - Cramer's Take), has replaced Verizon Wireless, but the
    transition has been difficult.

    Earlier this year, RadioShack set itself on a turnaround course by
    closing low-producing stores and expanding successful outlets. The
    company says it has so far closed 480 stores and now has about 6,000
    stores in total.

    The Verizon problem actually began long before Radio Shack dumped
    Verizon for Cingular in the hope of doing better than with Verizon.

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



  3. #3
    Diamond Dave
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employees via E-Mail.

    On Fri, 01 Sep 2006 17:27:22 GMT, John Navas
    <[email protected]> wrote:

    >The Verizon problem actually began long before Radio Shack dumped
    >Verizon for Cingular in the hope of doing better than with Verizon.


    And that's the point. People want Verizon Wireless, not Stinkular. Who
    ever's decision it was to drop one another (either VZW from RS or the
    other way around) must have been high on drugs. The current
    Cingular-RS arrangement is just not working.

    Bue I agree, RS has been a shell of its former self for a number of
    years. Years ago, when people wanted electronics parts - they went to
    RS. Now they either to to Beast Buy, Circuit ****ty, or go online and
    buy the parts they need (either computer or bare-bones electronics).

    For me, it hasn't been the same since they dropped their yearly paper
    catalog in 2002.

    Dave




  4. #4
    SMS
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    Diamond Dave wrote:

    > And that's the point. People want Verizon Wireless, not Stinkular. Who
    > ever's decision it was to drop one another (either VZW from RS or the
    > other way around) must have been high on drugs. The current
    > Cingular-RS arrangement is just not working.


    There is an escape clause for Radio Shack, but at this point Verizon
    would not even want to go back into Radio Shack. Even though Radio Shack
    was doing extremely well with Verizon, it wasn't as profitable to
    Verizon as selling through their own stores and on-line.



  5. #5
    SMS
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    Diamond Dave wrote:

    > For me, it hasn't been the same since they dropped their yearly paper
    > catalog in 2002.


    To be fair, you can't survive selling resistors, cables, and batteries,
    no matter how good the margins are, the volumes are low. Wireless was a
    high-margin, high-volume business for Radio Shack, but they got greedy
    when they thought that the better spiffs from Cingular would turn into
    higher profits. They failed to take into account that "it's the
    network." Cingular has a significantly poorer network in many metro
    areas (just look at the Consumer Reports survey), and wireless is a
    mature enough market that customers understand that it's not just about
    how many peak minutes you get for x dollars. In the San Francisco Bay
    Area, the dealers are livid about the loss of Verizon.



  6. #6
    Isaiah Beard
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    John Navas wrote:

    > "And now for the rest of the story:"
    >
    > RadioShack has been stung by sluggish sales and has been slow to
    > adjust to the loss of Verizon Wireless -- a joint venture of Verizon
    > (VZ - commentary - Cramer's Take) and Vodafone (VOD - commentary -
    > Cramer's Take) -- as its cell phone service partner. Cingular,
    > co-owned by AT&T (T - commentary - Cramer's Take) and BellSouth (BLS
    > - commentary - Cramer's Take), has replaced Verizon Wireless, but the
    > transition has been difficult.
    >
    > Earlier this year, RadioShack set itself on a turnaround course by
    > closing low-producing stores and expanding successful outlets. The
    > company says it has so far closed 480 stores and now has about 6,000
    > stores in total.


    Funny, all of the material you've quoted above completely substantiates
    Steven's interpretation of the facts...

    > The Verizon problem actually began long before Radio Shack dumped
    > Verizon for Cingular in the hope of doing better than with Verizon.


    ....and does not support *your* interpretation, one iota.


    --
    E-mail fudged to thwart spammers.
    Transpose the c's and a's in my e-mail address to reply.



  7. #7
    SMS
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    Isaiah Beard wrote:
    > John Navas wrote:
    >
    >> "And now for the rest of the story:"
    >>
    >> RadioShack has been stung by sluggish sales and has been slow to
    >> adjust to the loss of Verizon Wireless -- a joint venture of Verizon
    >> (VZ - commentary - Cramer's Take) and Vodafone (VOD - commentary -
    >> Cramer's Take) -- as its cell phone service partner. Cingular,
    >> co-owned by AT&T (T - commentary - Cramer's Take) and BellSouth (BLS
    >> - commentary - Cramer's Take), has replaced Verizon Wireless, but the
    >> transition has been difficult.
    >>
    >> Earlier this year, RadioShack set itself on a turnaround course by
    >> closing low-producing stores and expanding successful outlets. The
    >> company says it has so far closed 480 stores and now has about 6,000
    >> stores in total.

    >
    > Funny, all of the material you've quoted above completely substantiates
    > Steven's interpretation of the facts...
    >
    >> The Verizon problem actually began long before Radio Shack dumped
    >> Verizon for Cingular in the hope of doing better than with Verizon.

    >
    > ...and does not support *your* interpretation, one iota.


    I think maybe what John was trying to say is that Verizon sales at Radio
    Shack were not at their highest historical level, back in 2005.

    What he doesn't understand is that just because sales may be lower than
    prior quarters doesn't mean that changing products is going to make
    things better. You've got to look at the big picture. There were many
    more Verizon company stores, as well as other Verizon outlets (Circuit
    City, Costco, etc.) coming up to speed in 2005, so naturally Radio Shack
    was not going to be able to maintain the same volume of sales. Basically
    you had all these stores clamoring to sell Verizon, because Verizon was
    doing so well in terms of net additions, while no one was all that
    interested in selling Cingular.

    Radio Shack got a sweet deal with Cingular, and didn't have as much
    competition. Unfortunately for Radio Shack, the wireless market has
    matured to the point where people are smart enough to select a carrier
    based on other factors than the reseller.

    Now Radio Shack is running around blaming Cingular for their worsening
    financials, but I don't think anyone forced Radio Shack into a deal with
    Cingular, they made their own bad decision.



  8. #8
    Saul
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employees via E-Mail.

    I stopped going in there years ago, after they started asking for phone
    numbers and pushing their batteries, which do last as long as other alk
    do...Really crap, at a premium price


    "John Navas" <[email protected]> wrote in message
    news:[email protected]
    > On Fri, 01 Sep 2006 10:16:13 -0700, SMS <[email protected]>
    > wrote in <[email protected]>:
    >
    >>"http://www.ajc.com/business/content/business/stories/0831radioshack.html"
    >>
    >>"Radio Shack has been stung by sluggish sales and has been slow to
    >>adjust to the loss of Verizon Wireless."
    >>
    >>("http://www.thestreet.com/_googlen/newsanalysis/retail/10303115.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA")

    >
    > "And now for the rest of the story:"
    >
    > RadioShack has been stung by sluggish sales and has been slow to
    > adjust to the loss of Verizon Wireless -- a joint venture of Verizon
    > (VZ - commentary - Cramer's Take) and Vodafone (VOD - commentary -
    > Cramer's Take) -- as its cell phone service partner. Cingular,
    > co-owned by AT&T (T - commentary - Cramer's Take) and BellSouth (BLS
    > - commentary - Cramer's Take), has replaced Verizon Wireless, but the
    > transition has been difficult.
    >
    > Earlier this year, RadioShack set itself on a turnaround course by
    > closing low-producing stores and expanding successful outlets. The
    > company says it has so far closed 480 stores and now has about 6,000
    > stores in total.
    >
    > The Verizon problem actually began long before Radio Shack dumped
    > Verizon for Cingular in the hope of doing better than with Verizon.
    >
    > --
    > Best regards, FAQ FOR CINGULAR WIRELESS:
    > John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>






  9. #9
    Isaiah Beard
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    SMS wrote:
    > Diamond Dave wrote:
    >
    >> For me, it hasn't been the same since they dropped their yearly paper
    >> catalog in 2002.

    >
    > To be fair, you can't survive selling resistors, cables, and batteries,
    > no matter how good the margins are, the volumes are low. Wireless was a
    > high-margin, high-volume business for Radio Shack, but they got greedy
    > when they thought that the better spiffs from Cingular would turn into
    > higher profits. They failed to take into account that "it's the
    > network." Cingular has a significantly poorer network in many metro
    > areas (just look at the Consumer Reports survey), and wireless is a
    > mature enough market that customers understand that it's not just about
    > how many peak minutes you get for x dollars. In the San Francisco Bay
    > Area, the dealers are livid about the loss of Verizon.


    It speaks volumes that Verizon is continuing to close the gap on
    subscribber numbers, while Cingular has consistently higher churn.
    Clearly, Verizon was not hurt in any way by RadioShack dropping them as
    a carrier, and Cingular certainly hasn't felt much of a benefit.


    --
    E-mail fudged to thwart spammers.
    Transpose the c's and a's in my e-mail address to reply.



  10. #10
    Scott
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employees via E-Mail.


    "John Navas" <[email protected]> wrote in message
    news:[email protected]
    > On Fri, 01 Sep 2006 10:16:13 -0700, SMS <[email protected]>
    > wrote in <[email protected]>:
    >
    >>"http://www.ajc.com/business/content/business/stories/0831radioshack.html"
    >>
    >>"Radio Shack has been stung by sluggish sales and has been slow to
    >>adjust to the loss of Verizon Wireless."
    >>
    >>("http://www.thestreet.com/_googlen/newsanalysis/retail/10303115.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA")

    >
    > "And now for the rest of the story:"
    >
    > RadioShack has been stung by sluggish sales and has been slow to
    > adjust to the loss of Verizon Wireless -- a joint venture of Verizon
    > (VZ - commentary - Cramer's Take) and Vodafone (VOD - commentary -
    > Cramer's Take) -- as its cell phone service partner. Cingular,
    > co-owned by AT&T (T - commentary - Cramer's Take) and BellSouth (BLS
    > - commentary - Cramer's Take), has replaced Verizon Wireless, but the
    > transition has been difficult.
    >
    > Earlier this year, RadioShack set itself on a turnaround course by
    > closing low-producing stores and expanding successful outlets. The
    > company says it has so far closed 480 stores and now has about 6,000
    > stores in total.
    >
    > The Verizon problem actually began long before Radio Shack dumped
    > Verizon for Cingular in the hope of doing better than with Verizon.
    >

    No, Johnny- you don't get to have it both ways. The article clearly states
    how much of a void Verizon leaves in their sales strategy. Besides- it was
    Verizon that did the dumping





  11. #11
    SMS
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    Isaiah Beard wrote:

    > It speaks volumes that Verizon is continuing to close the gap on
    > subscribber numbers, while Cingular has consistently higher churn.
    > Clearly, Verizon was not hurt in any way by RadioShack dropping them as
    > a carrier, and Cingular certainly hasn't felt much of a benefit.


    Actually it has helped Cingular's net additions numbers, and hurt
    Verizon's. Verizon would have had even more additions if they had still
    had Radio Shack's 5000 or so outlets.

    What Radio Shack believed, and what turned out to be untrue, is that
    they could sell Cingular or Sprint to a large percentage of the
    customers that came in for Verizon.

    Financially, Verizon is better off without Radio Shack, because it was a
    less profitable sales outlet than their own stores and e-commerce site.



  12. #12
    Robert Coe
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employees via E-Mail.

    On Fri, 1 Sep 2006 22:01:12 -0400, "Saul" <[email protected]> wrote:
    : I stopped going in there years ago, after they started asking for phone
    : numbers and pushing their batteries, which do last as long as other alk
    : do...Really crap, at a premium price

    I guess you meant to say "do not last". Who makes their batteries, the cheap
    Chinese supplier of the week?

    The next time they dump their CEO, they should do that by email too.



  13. #13
    Isaiah Beard
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    SMS wrote:
    > Isaiah Beard wrote:
    >
    >> It speaks volumes that Verizon is continuing to close the gap on
    >> subscribber numbers, while Cingular has consistently higher churn.
    >> Clearly, Verizon was not hurt in any way by RadioShack dropping them
    >> as a carrier, and Cingular certainly hasn't felt much of a benefit.

    >
    > Actually it has helped Cingular's net additions numbers, and hurt
    > Verizon's. Verizon would have had even more additions if they had still
    > had Radio Shack's 5000 or so outlets.


    I have to disagree with that assessment. Both before and after
    RadioShack and Verizon parted ways, VZW was and is making headway
    towards closing the subscriber gap on Cingular. They continue to lead
    in net additions, clearly without RadioShack's "help." And in all of
    the regions that I've traveled and seen VZW outlet stores, they all seem
    to be pretty close in proximity (often in the very same shopping center,
    or next door) to the nearest RadioShack. I think Verizon realized a
    redundancy, sought to do away with it, and did so successfully.

    Regardless, any assertion that continued partnership with RadioShack
    would've helped Verizon even more is purely academic.

    > What Radio Shack believed, and what turned out to be untrue, is that
    > they could sell Cingular or Sprint to a large percentage of the
    > customers that came in for Verizon.


    This would indicate to me that Verizon Wireless was helping RadioShack's
    sales, not the reverse.


    --
    E-mail fudged to thwart spammers.
    Transpose the c's and a's in my e-mail address to reply.



  14. #14
    SMS
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employeesvia E-Mail.

    Isaiah Beard wrote:

    > This would indicate to me that Verizon Wireless was helping RadioShack's
    > sales, not the reverse.


    In reality it was both.

    Losing 5000 sales outlets all at once probably did have a negative
    effect on Verizon's sales. Sure they are still leading all carriers, in
    terms of net additions, but they'd have been doing a bit better with
    those 5000 outlets. Some people are dumb enough to buy whatever it is
    that Radio Shack is selling.

    Losing the carrier that has the best reputation, the best coverage, the
    best data network, and that is consistently top-ranked by every unbiased
    survey definitely hurt Radio Shack more than it hurt Verizon.

    Still, it's getting pretty tiring to hear Radio Shack blame its current
    problems on poor wireless sales. No one held a gun to their head and
    forced them to do such a stupid thing. Whoever made the decision to drop
    Verizon in favor of Cingular is probably long gone with a nice golden
    parachute, leaving the stores to suffer with significantly lower sales,
    forcing the closing of hundreds of stores, and causing the layoffs at
    the corporate headquarters.



  15. #15
    Todd Allcock
    Guest

    Re: ""You've got mail! ...and no job!" Radio Shack fires Employees via E-Mail.

    At 05 Sep 2006 13:53:03 -0700 SMS wrote:

    > Still, it's getting pretty tiring to hear Radio Shack blame its current

    problems on poor wireless sales. No one held a gun to their head and
    forced them to do such a stupid thing. Whoever made the decision to drop
    Verizon in favor of Cingular is probably long gone with a nice golden
    parachute, leaving the stores to suffer with significantly lower sales,
    forcing the closing of hundreds of stores, and causing the layoffs at the
    corporate headquarters.


    Radioshack isn't blaming the poor wireless sales on losing Verizon- it's
    the softening in the wireless industry overall. The wireless business is
    very saturated right now. There are very few "new" customers, just
    renewals/upgrades and the folks you can steal from other carriers.

    Radioshack, in their illustrious history, has rode one wave of tech after
    another- wired telephones and CB radios in the 70s, computers in the 80's
    and 90's, and cellular in the 90's and 00's. Cellular isn't the huge
    revenue stream for retailers that it once was, and retailers with all of
    their eggs in the cellular basket (like RS these days) are going to feel
    the pain, regardless of who their carrier is.

    Radioshack is very good at what they call "demystifying" technology-
    meaning they are good at explaining "new" gadgets to the uninitiated-
    once that tech is mainstream, like wireless is today, nobody needs to pay
    RS' inflated prices for it anymore.



    --
    Posted via a free Usenet account from http://www.teranews.com




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