By: Eli Karam
Shares of RadioShack plunged on Tuesday after devastating first quarter results. With a loss of $0.97 per share, the electronics retailer store declared a dismal loss of $98.3 million, to close at $1.38.
Their competitor, BestBuy just boosted its dividend by 12% (raising it from 17 cents per share to 19 cents per share). This of course was a tremendous factor in RadioShacks share price. Best Buy CEO Hubery Joly stated “our decision to increase the amount of cash we are returning to shareholders is indicative of our improved cash position and our confidence in the cash generating power of out multi channel business model”.
RadioShack unfortunately is said to close 200 stores which is about 5% of U.S based stores. Unless we see new innovative products come out by new partnerships with the company such as PCH and Quirky, they will just have to put their caps back on and take one for the team.
entrewolf 
I’m not so sure I would label Best Buy as the biggest competitor of radio shack, although Best Buy is the hallmark retailer of electronics, they are giving Radio Shack a good run for their money. Let’s take a step back and reflect on what these two great companies have provided us for the last few decades. Now as far as radio shack goes, their specific niche market would fall under the category of specific electronic components such as resistors capacitors silicon wafers led lights and a plethora of other electronic components. You know the stuff that make up what our electronic appliances and devices are constructed of. As well as consumer electronics such as TVs cameras speakers GPS’ and many more other products. Best Buy on the other hand, focuses generally on the fully manufactured products we see being advertised today, such as led TVs beats by dre speakers apple product and so much more.. So, in respect to that market best buy clearly dominates over radio shak but the giant tycoon best buy doesn’t seem to offer the other products radio shak seems to stick by, which I think is what is keeping radio shak alive all this time. Think about it, if you are trying to build a small robotic device or anything of that nature, you’re not going to consider best but but radio shak might seen as a viable option. Now to put it in perspective a lot of these name brand products are being made available more and more via the online. That’s right, I’m talking Amazon eBay alibaba tigerdirect and many many more “online” retailers who do t have to do business the same way these “brick and mortar” stores are. I believe that, with that advantage, these companies are readily able to offer wholesale discounted pricing on all product, big, and small. These online retailers make it a hell of a lot easier to get your desired goods for so much cheaper. At the end of the day though, you will still have those old fashioned folk who like to get in their cars and physically drive to the store to get their desired goods, and for many good reasons. You can see the product before you buy it. Feel it and analyze it to see if it’s fits your needs, whereas online you wouldn’t be able to so such things, merely rely on a “description” of the product and a few photos to glance at. Don’t forget the good old social aspect of regular brick and mortar shopping.
As for now the future for radio shak seems unstable at best but hey you never know
Stay hungry entrrwolves