RIP Radio Shack

by Thursday, December 11, 2014

The atrocious results from RadioShack’s latest earnings highlight things featured by electronic retailers within the brick-and-mortar storefronts.

Margin compression is coming back which is not too much of a surprise and stocks area unit being priced consequently. Granted, RadioShack stock is presently solely mercantilism around $1.30 a share, however it will decline.

When trends area unit moving thus chop-chop against brick-and-mortar electronic retailers, I simply do not see however it may be a reputation that produces sense unless you’re taking part in a serious investor read.

There is an area for natural philosophy retailers; it’s simply not the present house they operate in. Best get understands what the longer term feels like and you see their electronic kiosks in airports round the country.


Best get rumored cheap earnings in its latest report; however it had been a lot of regarding cutting prices than increasing revenue. True, they need declared that they’re increasing their dividend which could be a positive for investors.

You think the net retailers like Amazon area unit destined to appear profit; one solely wants investigate the company’s recent quarterly report numbers to grasp that merely isn’t the case.

There can be a time in associate degree age of net transparency wherever on-line and brick-and-mortar margins will look plenty like grocery stores — skinny. Profit generations are going to be from generic product made cheaply in China like cases, lens covers, and screen protectors.

Compressing margins means that a lot of competitive costs. There’ll be a time in associate degree age of net transparency wherever on-line and brick-and-mortar margins will look plenty like grocery stores — skinny. Profit generation is going to be from generic product made cheaply in China like cases, lens covers, and screen protectors.

I expect RadioShack to fade away; it is time has come back and gone. Best get can still exist however become smaller presences in electronic merchandising.

RadioShack and, to a lesser extent, Best get are going to be casualties within the continued emergence of economical delivery of retail product to customers. The new economy is well afoot.
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