RadioShack Expanding to Target Stores with Kiosks
Smart RadioShack
However, as many employees of Retail Services know, the contract between Wal-Mart and RadioShack allows WM to purchase up to I believe 15% of the SCKs every year. Many people have expressed concern that because of that buying allowance, we would eventually go out of business. Well, RS is not dumb, I can assure you of that.
I wouldn't be surprised if the strategy behind SCKs was to ...
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eliasarcade said:...
RadioShack's subsidiary, Retail Services, is the division of the company responsible for Sam's Clubs, Targets, and a few Kmart Kiosks. Their main source of revenue has and still is Sam's Club Kiosks (SCK). They began operations in Q4 of 2004 and have managed to build a steady business, building upon year over year numbers consitently since they opened shop.
However, as many employees of Retail Services know, the contract between Wal-Mart and RadioShack allows WM to purchase up to I believe 15% of the SCKs every year. Many people have expressed concern that because of that buying allowance, we would eventually go out of business. Well, RS is not dumb, I can assure you of that.
I wouldn't be surpris
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Electronics stores can't survive without a valuable cell phone store/kiosk as a part of their line-up. Phones are very profitable, with an industry gross margin average of roughly 50%. Plus, it's a great way to build clientele with upgrades, pre-paid refills and such. It's no...
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eliasarcade said:...
lol. Before about two months ago, I hadn't been to a RS for years. The last time I was there batteries, circuits and RC cars were what they showcased. Now it's all about mobile solutions. The take an aggressive approach to greeting customers and immediately seeking their needs about mobile phones. This approach is not exclusive to RS. In fact, as mentioned in the news article, RS is ramping up their footprint in order to take some of that market share from Best Buy.
Electronics stores can't survive without a valuable cell phone store/kiosk as a part of their line-up. Phones are very profitable, with an industry gross margin average of roughly 50%. Plus, it's a great way to build clientele with upgrad
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Good for Radioshack, though. I always went to Radioshack for my Sprint upgrades.
As far as Costco goes, a company by the name of Wireless Advocates (WA) operates those cell phone kiosks. I don't see them doing big things because, unlike RS, they don't have hun...
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