Electronic retailer RadioShack has seen better days, walking by or even into a RadioShack store you can quickly see why sales fell 19% in last year’s fourth quarter. RadioShack is in desperate need revamp the in-store experience and CEO Joseph C. Magnacca is out to do just that.
From the Forbes.com article, Magnacca points out his turnaround plan for RadioShack.
From the article
Here’s a quick breakdown of his plan:
- Repositioning the brand. This concept is exemplified by that 1980s Superbowl ad RadioShack won much deserved acclaim for. The company is promising a new, snazzier version of itself.
- Revamping the product assortment. In short, give customers more products they want and get rid of stuff they’re not buying. Magnacca promised real changes in product this summer, and noted the company is moving back to its “roots” by offering newer products ahead of the curve. He’s also betting big on his employees who he says are capable of educating consumers on new products.
- Reinvigorating the stores. Some RadioShack stores are getting makeovers. Well lit, clean lines and modern design will highlight top products. These concept stores include things like interactive speaker walls, and live devices that customers can use.
- Operational efficiency. 1,100 store closures shrink company owned stores by about 25%. Magnacca says these were the lowest performing stores, and ones that were expected to generate losses. The company still has about 4,000 locations.
- Financial flexibility. New financing of about $835 million from lenders including GE Capital. The financing includes $585 million in a new asset-based lending facility, and a $250 million secured term loan.
Question is now – will it work?
With over 4,000 stores to reinvent, the pressure will be on to see how quickly and efficiently RadioShack can bring the 90’s electronic giant into the 21st century, where consumers will want to come to RadioShack to try out and buy the latest and greatest devices on the market. The key component will then be for RadioShack to sustain and continue to keep relevant after the new concept stores have been converted over.