The Electric Commentary

Wednesday, April 25, 2007

Maybe The Onion Reads My Blog

On March 2nd, I wrote this post titled:

How Does RadioShack Stay In Business?

and contained sentences like:

It's disorganized, small, and they used to ask for your phone number when you bought batteries. They are clearly not a "volume-based" retailer, but who would ever buy a big-value high-margin item at RadioShack?

The Loop is littered with RadioShacks, which makes me think that they specialize in impulse buys, but in my experience the humble Walgreen's drug store actually carries more impulse electronics at lower prices.

The current Onion features the following article:

Even CEO Can't Figure Out How RadioShack Still In Business

Despite having been on the job for nine months, RadioShack CEO Julian Day said Monday that he still has "no idea" how the home electronics store manages to stay open.

"There must be some sort of business model that enables this company to make money, but I'll be damned if I know what it is," Day said. "You wouldn't think that people still buy enough strobe lights and extension cords to support an entire nationwide chain, but I guess they must, or I wouldn't have this desk to sit behind all day."

The retail outlet boasts more than 6,000 locations in the United States, and is known best for its wall-sized displays of obscure-looking analog electronics components and its notoriously desperate, high-pressure sales staff. Nevertheless, it ranks as a Fortune 500 company, with gross revenues of over $4.5 billion and fiscal quarter earnings averaging tens of millions of dollars.

"Have you even been inside of a RadioShack recently?" Day asked. "Just walking into the place makes you feel vaguely depressed and alienated. Maybe our customers are at the mall anyway and don't feel like driving to Best Buy? I suppose that's possible, but still, it's just...weird."

Coincidence? I think not.


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