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RadioShack Losing 400 Sam's Club-Based Kiosks

Article Comments  72  

Jan 10, 2011, 5:14 PM   by Eric M. Zeman   @phonescooper

RadioShack has indicated via an SEC filing that the contract it has with Wal-Mart-owned Sam's Club to run some 400 kiosks selling wireless goods and services is set to expire soon. Rather than extend the contract, Wal-Mart is taking over the operation of the wireless kiosks within Sam's Club stores by June 30, which will reduce RadioShack's retail footprint. To make up for the loss, RadioShack is boosting its relationship with Target, where it will add kiosks. Even so, RadioShack warned that it will see a $10 to $15 million drop in its kiosk business profit for 2011 due to the kiosk loss.

more info at Wall Street Journal »

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Comments

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cellboothmgr

Jan 10, 2011, 6:07 PM

finally

i started selling phones in a sams club kiosk 6-7 years ago, and they were talking about this happening then. hopefully this will be the beginning of the end for RS.
I could never figure out why Walmart didn't do this before. Either kick out RS or buy them, close the RS stores and convert the electronics dept. in Walmart to RS branding.
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I guess you guys are just immature children, wishing that more than 1200 sales associates lose their jobs. SCK, Radio Shack's Sams Club Kiosks are extremely profitable activating thousands of new lines daily..It has been their most profitable sales c...
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I have worked at one of the Sam's Club Kiosks since 2001. You are quite misinformed and had evidently lost your ability to view things objectively. To point out your ignorance of anything relevant to this situation, RS has only operated the Sam's Club...
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I have been working in Sams Club since 04 took a brief leave to go work for AT&T for about 6 months when i decided to leave because the customer interaction could be less scripted and I wasnt required to meet very high feature standards on phones so i...
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cellboothmgr said:
i started selling phones in a sams club kiosk 6-7 years ago, and they were talking about this happening then. hopefully this will be the beginning of the end for RS.


Right. 'Cause then thousands ...
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rhodekill

Jan 12, 2011, 6:44 PM

It's a pity

Truth be told, SCK has got a pretty descent reputation in my area, but we rent space from SAM'S at a rate of approximately 13% of profit. That means that if SAM'S sells only 25% in a month of the phones that SCK sells then they will collect 100% of the profit. That is more than 13. We've had a good run, and I believe that TARGET will be revamping their cell phone setup soon, also. I think that if you give it 2 years then you will see TARGET as a serious contender in the indirect market. TARGET has been holding the in-store RS employees to a very high standard and I don't think that employees are dissappointing them. I've only been seeing and hearing good things so far. With a little word of mouth and good advertising in the circulars, then I...
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electronet

Jan 11, 2011, 12:09 PM

RadioShack Corporation (NYSE:RSH) ranks 1st among Electronic Stores Companies by Return on Equity

RadioShack Corporation (NYSE:RSH) reported the gain of 0.77% and closed at $18.36 whereas overall traded volume stood at 1.55 million shares for the day. The company stands in profit with the profit margin of 5.08%. The company is in highly profitability with ROE of 23.54%.   
electronet said:
RadioShack Corporation (NYSE:RSH) reported the gain of 0.77% and closed at $18.36 whereas overall traded volume stood at 1.55 million shares for the day. The company stands in profit with the profit margin of 5.08%
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ejrsteven

Jan 10, 2011, 9:40 PM

walmart employee hand u the phone and tells u good luck

So my question if that is such a great ideal why can I go to walmart ask the simplest of a questions then be told that they just sell the phone having no ideal on functionally or anything! People like to be shown the operations of their phones (I know that I do!!!). It's not going to good for those working there in the kiosks that have families and/or themselves to support. I believe an agreement should be meant to ensure the same expertises to continue never had a question, while shopping at Sam's Communication centers, that couldn't be answered (same question that was asked to Wal-Mart wireless associates). So in closing I wish them all of the luck if that is how they feel but will probably start shopping elsewhere do to this fact very hea...
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Have no worries, all "worthwhile" SCK employees will be moving into Target or RS locations. I have hundreds of loyal customers that will follow me wherever I go (thats what happens when you do right by people).

Remember when there used to be TV sal...
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ejrsteven

Jan 10, 2011, 10:46 PM

really not seeing the benefit either

Crying or Very sad I have experience the most dishonest reps until I went to a sc kiosks the knowledge that the rep had truly floored me knowing that I just came from a Wal-Mart being unable to get any question answered on phones(I was told we just sell them). I had a question answered about a phone that they didn't even carry and never sold shows their promise! Sc kiosk were the best experience in yrs dealing with wireless! I think sam's clubs are just looking at $ but when had a issue going to member services I literally watched a stained up mattress that was sold over a decade ago returned for full price but I had issue with rc cars less then a year ago!! Seen dozen of tvs at reduce prices that were returned even seen non hd tvs which haven't been sol...
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funny you mention the tvs and mattress being returned. i watched a 4 year old rear projection giant screen tv that was literally beat up with pieces falling off get a full refund for a modern hdtv.


they will definitely lose money on the wireless...
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mangobeach

Jan 11, 2011, 10:33 AM

Such bad Blood between Carrier stores & SCK

I have worked for both Carrier owned stores & SCK. Both sides have dishonest employees. You will always see them in a retail environment, bashing each other really doesn’t solve anything. I will say I had a dishonest manager @ SCK, but I don’t think SCK's employees are all bad. It’s just my manager was a jerk! He stole sales from his people all the time. I also saw the same thing in corporate stores. I left SCK & now do corporate sales for a wireless carrier. Its just that bad sales people make it hard for those of us who have character, and enjoy what we do. I feel bad for all of those who will be out of work, but I can’t say that I am surprised by this, as from what I have seen with my experience with SCK. I wi...
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mkl4466

Jan 11, 2011, 12:02 AM

Affected employees

I worked for RS for 4 1/2 years, 2 years carrier corporate store, then managed an SCK for 6 months. Now for the last year I've been a manager for a Verizon indirect retailer, the Cellular Connection, now going by TCC. This has been my best experience in all my years of selling phones, and despite the economy, one of my best pay years.
I feel sympathetic to the employees who may not have a job after Sams takes over the sck spaces. I've had my ups and downs with the Shack, and though I haven't agreed with every decision RS has made over the years, there will always be a special place in my heart. I wouldn't be where I am today if not for the great opportunity I had with the Shack.
I invite any SCK employees who are looking at their options t...
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