New York – Faced with slumping sales in its PC and other core CE categories, RadioShack is retooling its stores and merchandise mix to emphasize its more robust wireless and parts/batteries/accessories businesses.
Speaking here last week at UBS Warburg’s Global Consumer Conference, RadioShack senior VP/chief financial officer Michael Newman said those sectors will likely be expanded next year with more SKUs and floor space, while PCs, large screen TVs and other slower moving categories will be pared back.
The company will also begin customizing its product mix to suit individual markets, in contrast to its traditional ‘one-size-fits-all’ merchandising approach, Newman said.
He added that RadioShack has been disappointed by its home connectivity initiative, which has been hamstrung by the financial woes of its service provider partners and by stores that are still not wired for broadband. Meanwhile, the company continues to evaluate the traffic levels of its Blockbuster in-store shops, with a decision on whether to expand the 130-store, four-market test expected next month.
