Radioshack is not keeping up
Big box stores are hurting Radioshack right now which has become a niche electronic store along with cell phones, accessories, and limited options for activating service. What’s really hurting Radioshack however is their online performance and right now they’re missing a huge chunk of the pie. Reports have confirmed that Radioshack currently offers the ability to order iPhones online but doesn’t have enough capacity to fulfill the orders. The lags are going to hurt radioshack which has been already in trouble earlier this year as they were one of the last stores to get the new iPhones.
RadioShack currently advertises the iPhone on its website with no ability to purchase the phone online. Users instead are directed to find a RadioShack store to purchase a unit, but many stores do not stock the iPhone, offering only a “Ship To Store” option that takes several days to fulfill. This method of inventory is markedly different from competitors like Best Buy, which sell the iPhone online, in-store and via an in-store pickup option.
RadioShack franchise owner Gary Mahan claims his sales have plummeted 30 percent year-over-year due to declining stock, with a major lost opportunity this Black Friday.
Mahan believes that if he had received the iPhone 6 and 6 Plus, his one store on the Oregon coast could have made an extra $1,000 in profit over the Black Friday weekend, which would have been a happy holiday gift for him, he says. He couldn’t speculate how that $1,000 in lost profit opportunity might extrapolate to other stores in RadioShack’s chain of 5,387 corporate-owned and franchised locations.