RadioShack Testing New Store Format

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TUCSON, Ariz. -- RadioShack opened the first of 17 retrofitted stores here today in a test of a new format for the electronics chain.

The new design improves product adjacencies by dividing stores into four "zones" that group similar goods and services. The zones are also designed to provide visual clues that will help guide customers through the retailer's core businesses.

The new layout clusters parts, accessories and batteries together within "the destination" zone, while A/V and computer products are grouped within "the connecting places zone." Telecommunications products are merchandised within "the connecting people zone;" and access to RadioShack's e-commerce site and its vast inventory can be gained through kiosks found within "the virtual zone."

The prototype stores will be opened in three phases over the next four months.

"Testing a new RadioShack store design is the next step in our business strategy and, if it proves successful, could provide RadioShack with a catalyst for a whole new level of growth," said chairman, president and CEO Len Roberts.

Roberts' announcement of the redesign came as the company marked its first day of trading as RadioShack Corporation. In a prepared statement, Roberts stressed his goal of accelerating sales and earnings by ramping up, growing the company's home installation fleet and expanding its business-to-business model. He added that profits from recurring connectivity services, a cornerstone of his strategy, should hit $250 million by 2004.


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