RadioShack
Encyclopedia
RadioShack Corporation (formerly Tandy Corporation
) is an American
franchise of electronics retail stores in the United States
, as well as parts of Europe, South America and Africa. As of 2008, RadioShack reported net sales and operating revenues of $4.81 billion. The headquarters of RadioShack is located in Downtown
Fort Worth, Texas
. RadioShack is also a sponsor for the Samsung/RadioShack 500
NASCAR
Sprint Cup Series race at Texas Motor Speedway
.
On July 21, 2009, RadioShack announced a partnership with T-Mobile USA
, and started offering the service in August 2009. The T-Mobile partnership ended on September 15, 2011 at that time Verizon Wireless launched in over 4,000 of the retail stores nationwide.
RadioShack's current proprietary brands
include RadioShack branded products (parts, adapters, telephones and other legacy/classic products), AntennaCraft (outdoor antennas and amplifiers), Auvio (audio/video cables, LCD TV's, headphones, premium surge protectors and speakers), Enercell
(batteries and power), Gigaware (computer, GPS and iPod accessories, mp3 players and accessories, as well as digital cameras, digital camera accessories and digital picture frames) and PointMobl (Wireless Phone Accessories).
Discontinued brands include Accurian (audio and video equipment and accessories), MyMusix (MP3 players; now marketed under the Gigaware brand), Kronus (tools), Optimus (formerly audio and PA/DJ equipment; later used for digital camera accessories), Presidian (audio and video equipment, telephones, flashlights, calculators, and 2-way radios), VoiceStar (wireless phone accessories), Archer (wiring and antennas), Duofone (telephones & accessories), Micronta (scientific and educational equipment) and Realistic
(sound equipment).
In 2009, the company became the main sponsor of a new cycling team, Team RadioShack
, with Lance Armstrong
and Johan Bruyneel
as two of the members.
, radio. The brothers opened a one-store retail and mail-order operation in the heart of downtown Boston at 46 Brattle Street, near the site of the Boston Massacre
. They chose the name "Radio Shack
," which was the term for a small, wooden structure that housed a ship's radio equipment. The Deutschmanns thought the name was appropriate for a store that would supply the needs of radio officers aboard ships, as well as "ham" radio operators. The term was already in use - and is to this day - by "hams" when referring to the location of their stations.
The company issued its first catalog in 1939 as it entered the high-fidelity music market. In 1954, Radio Shack began selling its own private-label products under the brand name Realist, but was subsequently sued and consequently changed the brand name to Realistic
. After expanding to nine stores plus an extensive mail-order business, the company fell on hard times in the 1960s. Radio Shack was essentially bankrupt, but Charles Tandy saw the potential of Radio Shack and retail consumer electronics and bought the company for $300,000.
In 1962, Radio Shack was purchased by the Tandy Corporation, which was originally a leather
goods corporation, and renamed Tandy Radio Shack & leather. Tandy eventually divested itself of its non-electronic product lines.
Tandy (through InterTAN
) also operated a chain similar to RadioShack in the UK
under the Tandy name from the 1970s. Carphone Warehouse bought the shops in 1999, and converted them to its format over the next few years, or sold them.
Tandy entered the Australian market in 1973. In 2001 Woolworths Limited bought the Australian operations and merged them with its Dick Smith Electronics
business.
During the 1960s through the 1980s, Radio Shack marketed its free battery card; a free wallet-sized cardboard card which entitled the bearer to one free battery a month when presented at one of their stores. These cards also served as generic business cards for the salespeople in the 1980s; the "battery club" card was still used until the company-wide changes in the early 1990s.
In 1977, two years after the famous MITS Altair, Radio Shack introduced the TRS-80
, one of the first mass-produced personal computer
s that became a big hit. This was followed by the TRS-80 Color Computer
designed to attach to a television for use as a monitor. In the late 1980s, Radio Shack made the transition from its proprietary 8-bit computers to its proprietary IBM-PC-compatible Tandy computers; however, shrinking margins and a lack of economies of scale led Radio Shack to exit the computer-manufacturing market by the mid-1990s.
In 1970, Tandy Corporation bought Allied Radio
(both retail and industrial divisions), and began to merge the brands into Allied Radio Shack. However, after a federal government review, the company sold off the remaining Allied retail stores and resumed using the Radio Shack name. The industrial division (Allied Electronics) continued as a Tandy division until the 1990s, when it was sold.
Radio Shack had another big hit with products designed to take advantage of the Family Radio Service
, a short-range walkie-talkie system. Since the mid-1990s, the company has attempted to move into the consumer small components markets, focusing on marketing wireless phones.
In 1993, Len Roberts became president of Radio Shack. He had previously spent more than 20 years in the food industry, beginning with Ralston-Purina, where he served in various management and marketing positions.
In 1994, the company introduced a service known as "The Repair Shop at Radio Shack", through which it provided inexpensive out-of-warranty repairs for more than 45 different brands of electronic equipment. The company already had extensive parts warehouses and 119 regional repair centers, and hoped to leverage these to build customer relationships and increase store traffic. Len Roberts estimated that the new repair business could generate $500 million per year by 1999. As of May 2009, this service is still being offered. The service was also offered in Canada.
In early summer 1995, the company launched a new logo. "Radio Shack" was subsequently spelled in CamelCase
as "RadioShack".
word. The logo had been changed from the '70s-style bullethole lettering to the current stylized R in 1995.
Also in 2000, the company-owned Realistic
and Optimus brands were discontinued when the company entered into an agreement to carry RCA
products, although RadioShack had not made products under the Realistic name since the early 1990s. When the RCA contract ended in 2004, RadioShack added its own Presidian and Accurian brands, and then re-introduced the Optimus brand in 2005 on some low-end products. RadioShack still has its own brand of batteries, called Enercell.
Until 2002, RadioShack routinely asked for the name and address of customers who made purchases so they could be added to the mailing list. Name and mailing address information is requested when purchasing a service plan, RSU Part (RadioShack Unlimited - an instore ordering method for parts and accessories for select RadioShack and other brand products), Direc2U item (ordering of a special product or not in stock product with free shipping), and returning an item. Name and mailing address information and identification is required to apply for a RadioShack Answers Plus credit card, activate a cellular phone (by the wireless carrier), or to pay with a check.
On December 20, 2005, RadioShack announced the sale of its newly built riverfront Ft. Worth headquarters building to German-based KanAm Grund. RadioShack will continue to lease the property for 20 years.
Charles Tandy also inspired the Tandy Computer Whiz Kids, a comic-book duo of teen calculator enthusiasts who teamed up with the likes of Archie and Superman.
Typically, a 90-day period was given for the manager to improve (thus causing another manager to then be selected for Fix 1500). A total of 1,734 store managers were reassigned as sales associates, or terminated, in a 6-month period. Also, during this period, RadioShack canceled the employee stock purchase plan. By the first quarter of 2005, the metrics of skill assessment used during Fix 1500 had already been discarded, and the corporate officer who created the program had resigned.
, had resigned over questions raised about his résumé
. The Fort Worth Star-Telegram
discovered that he had not earned degrees in theology and psychology from Heartland Baptist Bible College
as claimed on his résumé. RadioShack's board of directors stood up for Edmondson, but Edmondson admitted to the errors, calling them "misstatements", and resigned.
In wake of Edmondson's absence Claire Babrowski acted as CEO, chief operating officer and president for RadioShack. She had just joined several months prior, after spending 31 years employed with McDonald's Corporation
, most recently as a vice president and Chief Restaurant Operations Officer. In August 2006, Claire Babrowski left RadioShack, later to become CEO and Executive Vice President of Toys "R" Us.
RadioShack had also admitted that 2005 fourth-quarter earnings had fallen 62 percent after a switch in wireless providers led to an inventory write-down. The news sent the company's shares to an almost three-year low.
On July 7, 2006, RadioShack's board of directors announced it had chosen Julian Day, 54, to serve as chairman and chief executive officer of the company. Day had previously served in senior leadership positions at several large publicly traded retailing companies in the U.S. and had played a key role in revitalizing such companies as Safeway, Sears and Kmart.
Most of RadioShack’s planned reductions occurred on August 28 at its headquarters operation in Fort Worth, Texas. Approximately 1 out of 5 positions were eliminated, and it affected employees at all levels of the company.
All employees at the corporate headquarters were informed of the impending cut 10 days in advance. As previously communicated to employees, an e-mail notification was sent on the published day and time to employees whose positions were terminated. They were given 30 minutes to collect their personal effects, say their goodbyes to co-workers and then attend a meeting with their senior supervisors. Afterward, a larger meeting with human resources allowed departing employees to obtain their benefits packages and ask questions.
This move drew immediate widespread public criticism for its lack of sensitivity.
and GPS navigation systems. The stores are furnished with white fixtures akin to the newly remodeled wireless department of nearly every RadioShack store, however there is no communicated relationship to RadioShack itself. It is thought that if the test proved to be successful, RadioShack could move to convert existing RadioShack locations into PointMobl stores in certain markets. Executives continue to decline comment on this test.
Some PointMobl products, such as Car Lighter Adapters (CLAs)and phone cases, are carried as store-brand products in most corporate stores.
RadioShack decided to close the stores and end the concept in March of 2011.
of Fort Worth, Texas
met on April 23, 2009 to discuss the condition of their file and the number of unanswered and unresolved complaints. At this time RadioShack had the grade of "F" and was not listed as a BBB Accredited business. The company is now working on a plan of action to address the existing and future customer service issues. Part of this plan is already visible in stores which are now required to post a sign with the District Manager's name and the question "How Are We Doing?" The sign also includes a direct toll-free number to the district office for an area and every office has received a unique phone number. RadioShackHelp.com has also been created as another portal for customers to resolve their issues through the internet. As of May 29, 2009, the BBB
has upgraded RadioShack from an "F" to a "C-" rating.
, acquired in 2004 by Circuit City. However, RadioShack sued InterTAN one week after the purchase, claiming InterTAN had breached the terms of their agreement. On March 24, 2005, a U.S. district court judge ruled in favor of RadioShack and cancelled their agreement, meaning that all 950 RadioShack stores in Canada must stop using the brand name in any of their products, packaging or advertising by June 30, 2005. As a result, all of the InterTAN stores were rebranded under the name The Source by Circuit City
and RadioShack Corporation planned to open its own stores in Canada under the RadioShack name.
In January 2007, RadioShack Corporation announced that it closed its nine company-owned stores in Canada in order for the company to refocus its attention and resources on strengthening its core business in the U.S.
The Source by Circuit City
was sold to Bell Canada
and rebranded as The Source and continues to operate in Canada despite the closure of all US Circuit City (big box) stores in February 2009.
would acquire them for AUD$114 million and merge them into their existing Dick Smith Electronics business. After the merger, Woolworths found Tandy to be in poor condition and has been trying to rejuvenate that part of the business since. Various RadioShack & Optimus branded stock continue to be sold exclusively in Tandy stores, but these are continuously being superseded by DSE branded stock.
. The French subsidiary went bankrupt and closed by the end of December 1993. Sales representatives blamed this on the practice of selling non-store brands (such as IBM laptops) with margins that were too low.
in the early 1970s. The opening of a Tandy store was usually accompanied by a publicity campaign where free 5-D cell flashlights were given away, with free batteries available through the Tandy battery card. Initially, the Tandy stores only sold their proprietary brands such as Realistic, Archer, Micronta or Optimus.
By the mid-1980s, however, many Tandy stores had closed, and by 1990, Tandy had disappeared from the Belgian market. In the last years of operation, they also stocked mainstream brands, which made the stores lose a lot of their peculiar character.
As of 2007, one Tandy store remains open in Merksem
, claiming to be the only remaining Tandy store in Europe.
, a nonprofit organization. The organization's store presence is the StreetSentz program, which is a child identification and educational kit readily available to families free of charge. Update! RadioShacks charity focus is now with LiveStrong organization created by Lance Armstong where Mr. Julian Day is part of the Non-for-Profit organizations board.
RadioShack's green initiative involves the Rechargeable Battery Recycling Corporation
, in which end-of-life rechargeable batteries are dropped off in-store to be safely recycled. End-of-life wireless phones can also be recycled.
outlets. The project ended in February 2002 when CEO Len Roberts announced that the stores did not meet expectations.
A more successful venture for RadioShack has been the wireless kiosks the company has been operating since 2004 within Sam's Club
discount warehouses. RadioShack purchased the kiosk operations from Arizona-based Wireless Retail Inc. Kiosk employees are contracted through RadioShack Corporation, and while no RadioShack-branded merchandise is sold, they do sell products produced by RadioShack. The name Wireless Retail inc. has since been changed to SC Kiosks inc. Target has announced a joint venture with RadioShack to make Bullseye Mobile kiosks. They will carry AT&T, T-Mobile (or Sprint in Some Areas), and Verizon Wireless. The kiosks will be located in Target stores and will be built in 2010 and 2011.http://www.phonescoop.com/news/item.php?n=6374http://www.phonescoop.com/news/item.php?n=6504
In January 2011, it was reported that RadioShack may lose $10 million to $15 million in operating income this year as it closes the wireless mobile kiosks inside Sam's Club stores. The company is expected to run kiosks in 1,490 Target stores by April-2011.
's newly created professional cycling team in 2010.
for $20 million. The company razed the complex and had a 900000 square foot corporate headquarters campus built after the City of Fort Worth approved a 30-year economic agreement to ensure that the company stayed in Fort Worth. The company sold the building and, as of 2009, had two years left of a rent-free lease in the building. The company intended to make $66.8 million in the deal with the city. By 2009 it made $4 million; by 2009 the Fort Worth Star-Telegram
reported that the company was considering a new site for its headquarters. The Tampa Bay Business Journal reported that rumors spread among Tampa Bay Area
real estate brokers and developers that RadioShack may select Tampa as the site of its headquarters.
In 2010, however, RadioShack announced efforts to remain at their current site.
Tandy Corporation
Tandy Corporation was a family-owned leather goods company based in Fort Worth, Texas. Tandy was founded in 1919 as a leather supply store, and acquired RadioShack in 1963. The Tandy name was dropped in May 2000, when RadioShack Corporation was made the official name.-History:Tandy began in 1919...
) is an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
franchise of electronics retail stores in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, as well as parts of Europe, South America and Africa. As of 2008, RadioShack reported net sales and operating revenues of $4.81 billion. The headquarters of RadioShack is located in Downtown
Downtown Fort Worth
Downtown Fort Worth is the central business district of Fort Worth, Texas, United States.* Sundance Square - Fort Worth's downtown has is an 8 block entertainment district for the city. The Square has brick-pavers, sidewalk cafes, and landscaping which set it apart...
Fort Worth, Texas
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
. RadioShack is also a sponsor for the Samsung/RadioShack 500
Samsung/Radio Shack 500
The Samsung Mobile 500 is a NASCAR Sprint Cup Series race held at the Texas Motor Speedway in Fort Worth, Texas USA. Even though is advertised as a "500 mile" race, because TMS is a track, the actual distance is . There were 10 different winners in the first ten races, the longest such streak for...
NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
Sprint Cup Series race at Texas Motor Speedway
Texas Motor Speedway
Texas Motor Speedway is a speedway located in the northernmost portion of the U.S. city of Fort Worth, Texas – the portion located in Denton County, Texas....
.
On July 21, 2009, RadioShack announced a partnership with T-Mobile USA
T-Mobile USA
T-Mobile USA, Inc. is an American mobile-network operator, headquartered in Bellevue, Washington, that provides wireless voice, messaging and data services in the United States, Puerto Rico and the U.S. Virgin Islands. The company is the fourth-largest wireless carrier in the U.S. market with 33.73...
, and started offering the service in August 2009. The T-Mobile partnership ended on September 15, 2011 at that time Verizon Wireless launched in over 4,000 of the retail stores nationwide.
RadioShack's current proprietary brands
Store brand
Store brands are a line of products sold by a retailer under a single marketing identity. They bear a similarity to the concept of House brands, Private label brands in the United States, own brands in the UK, and home brands in Australia and generic brands...
include RadioShack branded products (parts, adapters, telephones and other legacy/classic products), AntennaCraft (outdoor antennas and amplifiers), Auvio (audio/video cables, LCD TV's, headphones, premium surge protectors and speakers), Enercell
Enercell
Enercell is a battery brand sold exclusively by RadioShack at retail stores and online. For decades, Enercell batteries were manufactured by Eveready, and then by Energizer when Energizer Holdings bought out Eveready. In 2004, Rayovac successfully underbid Energizer as RadioShack's battery supplier...
(batteries and power), Gigaware (computer, GPS and iPod accessories, mp3 players and accessories, as well as digital cameras, digital camera accessories and digital picture frames) and PointMobl (Wireless Phone Accessories).
Discontinued brands include Accurian (audio and video equipment and accessories), MyMusix (MP3 players; now marketed under the Gigaware brand), Kronus (tools), Optimus (formerly audio and PA/DJ equipment; later used for digital camera accessories), Presidian (audio and video equipment, telephones, flashlights, calculators, and 2-way radios), VoiceStar (wireless phone accessories), Archer (wiring and antennas), Duofone (telephones & accessories), Micronta (scientific and educational equipment) and Realistic
Realistic (brand)
Realistic was a brand produced by Radio-Shack, a division of Tandy Corporation, to market audio electronics for home use. The brand name is no longer in use by RadioShack and was largely discontinued by the early 1990s...
(sound equipment).
In 2009, the company became the main sponsor of a new cycling team, Team RadioShack
Team RadioShack
Team RadioShack is a professional road bicycle racing team, with RadioShack as the title sponsor, the creation of which was announced on July 23, 2009. Lance Armstrong co-owns and leads the team, which plans to race in the Grand Tours and the UCI ProTour, as well as running and triathlon events...
, with Lance Armstrong
Lance Armstrong
Lance Edward Armstrong is an American former professional road racing cyclist who won the Tour de France a record seven consecutive times, after having survived testicular cancer. He is also the founder and chairman of the Lance Armstrong Foundation for cancer research and support...
and Johan Bruyneel
Johan Bruyneel
Johan Bruyneel is a former road bicycle racer in professional cycling and a directeur sportif for UCI ProTour team . Retiring from racing in 1998, he became director of , a US-based UCI ProTour cycling team...
as two of the members.
The first 40 years
The company was started as Radio Shack in 1921 by two brothers, Theodore and Milton Deutschmann, who wanted to provide equipment for the then-nascent field of amateur, or hamAmateur radio
Amateur radio is the use of designated radio frequency spectrum for purposes of private recreation, non-commercial exchange of messages, wireless experimentation, self-training, and emergency communication...
, radio. The brothers opened a one-store retail and mail-order operation in the heart of downtown Boston at 46 Brattle Street, near the site of the Boston Massacre
Boston Massacre
The Boston Massacre, called the Boston Riot by the British, was an incident on March 5, 1770, in which British Army soldiers killed five civilian men. British troops had been stationed in Boston, capital of the Province of Massachusetts Bay, since 1768 in order to protect and support...
. They chose the name "Radio Shack
Radio shack
Radio shack is a slang term for a room or structure for housing radio equipment.-History:In the early days of radio, equipment was experimental and home-built. The first radio transmitters used a noisy spark to generate radio waves and were often housed in a garage or shed. When radio was first...
," which was the term for a small, wooden structure that housed a ship's radio equipment. The Deutschmanns thought the name was appropriate for a store that would supply the needs of radio officers aboard ships, as well as "ham" radio operators. The term was already in use - and is to this day - by "hams" when referring to the location of their stations.
The company issued its first catalog in 1939 as it entered the high-fidelity music market. In 1954, Radio Shack began selling its own private-label products under the brand name Realist, but was subsequently sued and consequently changed the brand name to Realistic
Realistic (brand)
Realistic was a brand produced by Radio-Shack, a division of Tandy Corporation, to market audio electronics for home use. The brand name is no longer in use by RadioShack and was largely discontinued by the early 1990s...
. After expanding to nine stores plus an extensive mail-order business, the company fell on hard times in the 1960s. Radio Shack was essentially bankrupt, but Charles Tandy saw the potential of Radio Shack and retail consumer electronics and bought the company for $300,000.
Tandy Corporation
Leather
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattlehide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.-Forms:...
goods corporation, and renamed Tandy Radio Shack & leather. Tandy eventually divested itself of its non-electronic product lines.
Tandy (through InterTAN
InterTAN
InterTAN Canada Ltd. was a Canadian consumer electronics retailer that operated stores under the banner "The Source by Circuit City" and a single "THS Studio" location. It was a wholly owned subsidiary of Circuit City Stores Inc., as of May 19, 2004. InterTAN is based in Barrie, Ontario, Canada...
) also operated a chain similar to RadioShack in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
under the Tandy name from the 1970s. Carphone Warehouse bought the shops in 1999, and converted them to its format over the next few years, or sold them.
Tandy entered the Australian market in 1973. In 2001 Woolworths Limited bought the Australian operations and merged them with its Dick Smith Electronics
Dick Smith Electronics
Dick Smith is an international electronics retailer, founded in 1968 by Richard "Dick" Smith. Today, it is a subsidiary of Woolworths Limited, incorporating Tandy, and the remaining Dick Smith Powerhouse Stores...
business.
During the 1960s through the 1980s, Radio Shack marketed its free battery card; a free wallet-sized cardboard card which entitled the bearer to one free battery a month when presented at one of their stores. These cards also served as generic business cards for the salespeople in the 1980s; the "battery club" card was still used until the company-wide changes in the early 1990s.
In 1977, two years after the famous MITS Altair, Radio Shack introduced the TRS-80
TRS-80
TRS-80 was Tandy Corporation's desktop microcomputer model line, sold through Tandy's Radio Shack stores in the late 1970s and early 1980s. The first units, ordered unseen, were delivered in November 1977, and rolled out to the stores the third week of December. The line won popularity with...
, one of the first mass-produced personal computer
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
s that became a big hit. This was followed by the TRS-80 Color Computer
TRS-80 Color Computer
The Radio Shack TRS-80 Color Computer was a home computer launched in 1980. It was one of the earliest of the first generation of computers marketed for home use in English-speaking markets...
designed to attach to a television for use as a monitor. In the late 1980s, Radio Shack made the transition from its proprietary 8-bit computers to its proprietary IBM-PC-compatible Tandy computers; however, shrinking margins and a lack of economies of scale led Radio Shack to exit the computer-manufacturing market by the mid-1990s.
In 1970, Tandy Corporation bought Allied Radio
Allied Radio
Allied Radio was an American radio manufacturer and retailer, which sold radio sets, tubes, capacitors , amateur radio equipment, citizen's band radios, miscellaneous communications equipment, electronic kits, and consumer audio systems through retail stores and mail-order.-History:Beginning in...
(both retail and industrial divisions), and began to merge the brands into Allied Radio Shack. However, after a federal government review, the company sold off the remaining Allied retail stores and resumed using the Radio Shack name. The industrial division (Allied Electronics) continued as a Tandy division until the 1990s, when it was sold.
Radio Shack had another big hit with products designed to take advantage of the Family Radio Service
Family Radio Service
The Family Radio Service is an improved walkie talkie radio system authorized in the United States since 1996. This personal radio service uses channelized frequencies in the ultra high frequency band. It does not suffer the interference effects found on citizens' band at 27 MHz, or the...
, a short-range walkie-talkie system. Since the mid-1990s, the company has attempted to move into the consumer small components markets, focusing on marketing wireless phones.
In 1993, Len Roberts became president of Radio Shack. He had previously spent more than 20 years in the food industry, beginning with Ralston-Purina, where he served in various management and marketing positions.
In 1994, the company introduced a service known as "The Repair Shop at Radio Shack", through which it provided inexpensive out-of-warranty repairs for more than 45 different brands of electronic equipment. The company already had extensive parts warehouses and 119 regional repair centers, and hoped to leverage these to build customer relationships and increase store traffic. Len Roberts estimated that the new repair business could generate $500 million per year by 1999. As of May 2009, this service is still being offered. The service was also offered in Canada.
In early summer 1995, the company launched a new logo. "Radio Shack" was subsequently spelled in CamelCase
CamelCase
CamelCase , also known as medial capitals, is the practice of writing compound words or phrases in which the elements are joined without spaces, with each element's initial letter capitalized within the compound and the first letter either upper or lower case—as in "LaBelle", "BackColor",...
as "RadioShack".
RadioShack Corporation
In May 2000, the company dropped the Tandy name altogether, instead opting for RadioShack contracted into one CamelCaseCamelCase
CamelCase , also known as medial capitals, is the practice of writing compound words or phrases in which the elements are joined without spaces, with each element's initial letter capitalized within the compound and the first letter either upper or lower case—as in "LaBelle", "BackColor",...
word. The logo had been changed from the '70s-style bullethole lettering to the current stylized R in 1995.
Also in 2000, the company-owned Realistic
Realistic (brand)
Realistic was a brand produced by Radio-Shack, a division of Tandy Corporation, to market audio electronics for home use. The brand name is no longer in use by RadioShack and was largely discontinued by the early 1990s...
and Optimus brands were discontinued when the company entered into an agreement to carry RCA
RCA
RCA Corporation, founded as the Radio Corporation of America, was an American electronics company in existence from 1919 to 1986. The RCA trademark is currently owned by the French conglomerate Technicolor SA through RCA Trademark Management S.A., a company owned by Technicolor...
products, although RadioShack had not made products under the Realistic name since the early 1990s. When the RCA contract ended in 2004, RadioShack added its own Presidian and Accurian brands, and then re-introduced the Optimus brand in 2005 on some low-end products. RadioShack still has its own brand of batteries, called Enercell.
Until 2002, RadioShack routinely asked for the name and address of customers who made purchases so they could be added to the mailing list. Name and mailing address information is requested when purchasing a service plan, RSU Part (RadioShack Unlimited - an instore ordering method for parts and accessories for select RadioShack and other brand products), Direc2U item (ordering of a special product or not in stock product with free shipping), and returning an item. Name and mailing address information and identification is required to apply for a RadioShack Answers Plus credit card, activate a cellular phone (by the wireless carrier), or to pay with a check.
On December 20, 2005, RadioShack announced the sale of its newly built riverfront Ft. Worth headquarters building to German-based KanAm Grund. RadioShack will continue to lease the property for 20 years.
Charles Tandy also inspired the Tandy Computer Whiz Kids, a comic-book duo of teen calculator enthusiasts who teamed up with the likes of Archie and Superman.
"Fix 1500" initiative
In early 2004, RadioShack introduced Fix 1500, a sweeping program to "correct" inventory and profitability issues company-wide. The program put the 1,500 lowest-graded store managers, of over 5,000, on notice of the need to improve. Managers were graded not on tangible store and personnel data but on one-on-one interviews with district management. The program thus sanctioned 30% of store managers based on subjective criteria.Typically, a 90-day period was given for the manager to improve (thus causing another manager to then be selected for Fix 1500). A total of 1,734 store managers were reassigned as sales associates, or terminated, in a 6-month period. Also, during this period, RadioShack canceled the employee stock purchase plan. By the first quarter of 2005, the metrics of skill assessment used during Fix 1500 had already been discarded, and the corporate officer who created the program had resigned.
CEO résumé scandal
On February 20, 2006, the company announced that its CEO, David EdmondsonDavid Edmondson
David J. Edmondson is an American businessman. He is currently Founder and CEO of E-Recycling Corps, an enterprise engaged in the collection, refurbishment and global redistribution of used wireless devices. Edmondson also founded EasySale, Inc in 2007, an internet-based consignment and...
, had resigned over questions raised about his résumé
Résumé
A résumé is a document used by individuals to present their background and skillsets. Résumés can be used for a variety of reasons but most often to secure new employment. A typical résumé contains a summary of relevant job experience and education...
. The Fort Worth Star-Telegram
Fort Worth Star-Telegram
The Fort Worth Star-Telegram is a major U.S. daily newspaper serving Fort Worth and the western half of the North Texas area known as the Metroplex. Its area of domination is checked by its main rival, The Dallas Morning News, which is published from the eastern half of the Metroplex. It is owned...
discovered that he had not earned degrees in theology and psychology from Heartland Baptist Bible College
Heartland Baptist Bible College
Heartland Baptist Bible College is an unaccredited Independent Fundamental Baptist Bible college in Oklahoma City, Oklahoma, which offers undergraduate diplomas in pastoral theology, missions, youth, Christian ministries, music education, Christian education , and secretarial science...
as claimed on his résumé. RadioShack's board of directors stood up for Edmondson, but Edmondson admitted to the errors, calling them "misstatements", and resigned.
In wake of Edmondson's absence Claire Babrowski acted as CEO, chief operating officer and president for RadioShack. She had just joined several months prior, after spending 31 years employed with McDonald's Corporation
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
, most recently as a vice president and Chief Restaurant Operations Officer. In August 2006, Claire Babrowski left RadioShack, later to become CEO and Executive Vice President of Toys "R" Us.
RadioShack had also admitted that 2005 fourth-quarter earnings had fallen 62 percent after a switch in wireless providers led to an inventory write-down. The news sent the company's shares to an almost three-year low.
On July 7, 2006, RadioShack's board of directors announced it had chosen Julian Day, 54, to serve as chairman and chief executive officer of the company. Day had previously served in senior leadership positions at several large publicly traded retailing companies in the U.S. and had played a key role in revitalizing such companies as Safeway, Sears and Kmart.
New strategy
In the spring of 2006, RadioShack announced a strategy to increase average unit volume, lower overhead costs, and grow profitable square footage. In early to mid 2006, RadioShack closed nearly 500 locations. It was determined that some stores were too close to each other, causing them to compete with one another for the same customers. Most of the stores closed in 2006 brought in less than $350,000 in revenue each year.Corporate layoffs
Despite these actions, stock prices plummeted within what was otherwise a booming market. On August 10, 2006, RadioShack announced plans to reduce its workforce at company headquarters by approximately 400 to 450 positions across its various support functions. Company officials said this action was necessary to reduce the company’s overhead expense and improve its long-term competitive position in the marketplace while supporting a significantly smaller number of stores.Most of RadioShack’s planned reductions occurred on August 28 at its headquarters operation in Fort Worth, Texas. Approximately 1 out of 5 positions were eliminated, and it affected employees at all levels of the company.
All employees at the corporate headquarters were informed of the impending cut 10 days in advance. As previously communicated to employees, an e-mail notification was sent on the published day and time to employees whose positions were terminated. They were given 30 minutes to collect their personal effects, say their goodbyes to co-workers and then attend a meeting with their senior supervisors. Afterward, a larger meeting with human resources allowed departing employees to obtain their benefits packages and ask questions.
This move drew immediate widespread public criticism for its lack of sensitivity.
PointMobl
In Mid-December 2008, RadioShack opened three concept stores under the name "PointMobl." The Stores, all located in Texas (in Dallas, Highland Village, and Allen), sold wireless phones and service, Netbooks, iPodIPod
iPod is a line of portable media players created and marketed by Apple Inc. The product line-up currently consists of the hard drive-based iPod Classic, the touchscreen iPod Touch, the compact iPod Nano, and the ultra-compact iPod Shuffle...
and GPS navigation systems. The stores are furnished with white fixtures akin to the newly remodeled wireless department of nearly every RadioShack store, however there is no communicated relationship to RadioShack itself. It is thought that if the test proved to be successful, RadioShack could move to convert existing RadioShack locations into PointMobl stores in certain markets. Executives continue to decline comment on this test.
Some PointMobl products, such as Car Lighter Adapters (CLAs)and phone cases, are carried as store-brand products in most corporate stores.
RadioShack decided to close the stores and end the concept in March of 2011.
Customer relations
RadioShack and the Better Business BureauBetter Business Bureau
The Better Business Bureau , founded in 1912, is a corporation consisting of several private business franchises of local BBB organizations based in the United States and Canada, which work through their parent corporation, the Council of Better Business Bureaus .The Better Business Bureau, through...
of Fort Worth, Texas
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
met on April 23, 2009 to discuss the condition of their file and the number of unanswered and unresolved complaints. At this time RadioShack had the grade of "F" and was not listed as a BBB Accredited business. The company is now working on a plan of action to address the existing and future customer service issues. Part of this plan is already visible in stores which are now required to post a sign with the District Manager's name and the question "How Are We Doing?" The sign also includes a direct toll-free number to the district office for an area and every office has received a unique phone number. RadioShackHelp.com has also been created as another portal for customers to resolve their issues through the internet. As of May 29, 2009, the BBB
BBB
- Music, film, and television :* Bad Boys Blue, a multinational pop group formed in Germany* Bakugan Battle Brawlers, an anime* Balkan Beat Box, an Israeli Gypsy punk band* Beethoven's Big Break, the sixth installment in the Beethoven film series...
has upgraded RadioShack from an "F" to a "C-" rating.
Pre-2005
The Canadian counterpart of RadioShack, also known as RadioShack, was run by a company called InterTANInterTAN
InterTAN Canada Ltd. was a Canadian consumer electronics retailer that operated stores under the banner "The Source by Circuit City" and a single "THS Studio" location. It was a wholly owned subsidiary of Circuit City Stores Inc., as of May 19, 2004. InterTAN is based in Barrie, Ontario, Canada...
, acquired in 2004 by Circuit City. However, RadioShack sued InterTAN one week after the purchase, claiming InterTAN had breached the terms of their agreement. On March 24, 2005, a U.S. district court judge ruled in favor of RadioShack and cancelled their agreement, meaning that all 950 RadioShack stores in Canada must stop using the brand name in any of their products, packaging or advertising by June 30, 2005. As a result, all of the InterTAN stores were rebranded under the name The Source by Circuit City
The Source by Circuit City
The Source , formerly known as RadioShack and later The Source by Circuit City, is a Canadian electronics retailer with over 800 locations across Canada. Originally part of the American RadioShack chain, The Source is currently financially backed by Bell Canada, which purchased the assets of...
and RadioShack Corporation planned to open its own stores in Canada under the RadioShack name.
Post-2005
After preventing InterTAN from using the RadioShack trademark, RadioShack announced its intention to re-enter the Canadian market itself with a Canadian division. InterTAN pursued court action to prevent RadioShack from using the trademark in Canada until the original 2010 expiry date of the original licensing agreement. The company had planned to have 20 to 30 stores operating in Canada as RadioShack by the end of 2005, mostly in the Toronto area, but progress was slower than anticipated. As of September 2006, nine company-owned stores had been opened and 16 dealer stores were operating under the name RadioShack, signing new agreements with RadioShack Corporation.In January 2007, RadioShack Corporation announced that it closed its nine company-owned stores in Canada in order for the company to refocus its attention and resources on strengthening its core business in the U.S.
The Source by Circuit City
The Source by Circuit City
The Source , formerly known as RadioShack and later The Source by Circuit City, is a Canadian electronics retailer with over 800 locations across Canada. Originally part of the American RadioShack chain, The Source is currently financially backed by Bell Canada, which purchased the assets of...
was sold to Bell Canada
Bell Canada
Bell Canada is a major Canadian telecommunications company. Including its subsidiaries such as Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for telephone and DSL Internet services in most of Canada east of Manitoba and in the northern territories,...
and rebranded as The Source and continues to operate in Canada despite the closure of all US Circuit City (big box) stores in February 2009.
Operations in Australia
InterTAN Australia ran Tandy stores until 2002, when it was announced that Woolworths LimitedWoolworths Limited
Woolworths Limited is a major Australian company with extensive retail interest throughout Australia and New Zealand. It is the:* largest retail company in Australia and New Zealand by market capitalisation and sales...
would acquire them for AUD$114 million and merge them into their existing Dick Smith Electronics business. After the merger, Woolworths found Tandy to be in poor condition and has been trying to rejuvenate that part of the business since. Various RadioShack & Optimus branded stock continue to be sold exclusively in Tandy stores, but these are continuously being superseded by DSE branded stock.
Operations in France
InterTAN operated Tandy stores in France, selling standard RadioShack brands, Realistic, Optimus, and Archer. Sales people sometimes came from the French-speaking Canadian province of QuébecQuebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
. The French subsidiary went bankrupt and closed by the end of December 1993. Sales representatives blamed this on the practice of selling non-store brands (such as IBM laptops) with margins that were too low.
Operations in Belgium
Tandy stores were introduced in BelgiumBelgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
in the early 1970s. The opening of a Tandy store was usually accompanied by a publicity campaign where free 5-D cell flashlights were given away, with free batteries available through the Tandy battery card. Initially, the Tandy stores only sold their proprietary brands such as Realistic, Archer, Micronta or Optimus.
By the mid-1980s, however, many Tandy stores had closed, and by 1990, Tandy had disappeared from the Belgian market. In the last years of operation, they also stocked mainstream brands, which made the stores lose a lot of their peculiar character.
As of 2007, one Tandy store remains open in Merksem
Merksem
Merksem is a district of the municipality and city of Antwerp in the Flemish Region of Belgium. It has almost 41,000 inhabitants.-History:The history of Merksem goes back to Gallo-Roman times. During that period the region was mentioned as Merk and Heim being part of the diocese Kamerijk...
, claiming to be the only remaining Tandy store in Europe.
Corporate citizenship
RadioShack's charity of choice is the National Center for Missing and Exploited ChildrenNational Center for Missing and Exploited Children
The National Center for Missing and Exploited Children is a private, non-profit organization established in 1984 by the United States Congress.-Establishment and overview:...
, a nonprofit organization. The organization's store presence is the StreetSentz program, which is a child identification and educational kit readily available to families free of charge. Update! RadioShacks charity focus is now with LiveStrong organization created by Lance Armstong where Mr. Julian Day is part of the Non-for-Profit organizations board.
RadioShack's green initiative involves the Rechargeable Battery Recycling Corporation
Call2Recycle
Call2Recycle® is the only free rechargeable battery and cell phone collection program in North America. Since 1996, Call2Recycle has diverted over 60 million pounds of rechargeable batteries from the solid waste stream and through a network of 30,000 public and 30,000 private collection sites...
, in which end-of-life rechargeable batteries are dropped off in-store to be safely recycled. End-of-life wireless phones can also be recycled.
RadioShack and other retailer partnerships
In August 2001, RadioShack opened new kiosk-style stores inside BlockbusterBlockbuster (movie rental store)
Blockbuster LLC is an American-based provider of home video and video game rental services, originally through video rental shops , later adding DVD-by-mail, streaming video on demand, and kiosks. At its peak in 2009, Blockbuster had up to 60,000 employees. There are around 1700 Blockbuster...
outlets. The project ended in February 2002 when CEO Len Roberts announced that the stores did not meet expectations.
A more successful venture for RadioShack has been the wireless kiosks the company has been operating since 2004 within Sam's Club
Sam's Club
Sam's Club is a chain of membership-only retail warehouse clubs owned and operated by Wal-Mart Stores, Inc., founded in 1983 and named after Wal-Mart founder Sam Walton. , the Sam's Club chain serves more than 47 million U.S. members...
discount warehouses. RadioShack purchased the kiosk operations from Arizona-based Wireless Retail Inc. Kiosk employees are contracted through RadioShack Corporation, and while no RadioShack-branded merchandise is sold, they do sell products produced by RadioShack. The name Wireless Retail inc. has since been changed to SC Kiosks inc. Target has announced a joint venture with RadioShack to make Bullseye Mobile kiosks. They will carry AT&T, T-Mobile (or Sprint in Some Areas), and Verizon Wireless. The kiosks will be located in Target stores and will be built in 2010 and 2011.http://www.phonescoop.com/news/item.php?n=6374http://www.phonescoop.com/news/item.php?n=6504
In January 2011, it was reported that RadioShack may lose $10 million to $15 million in operating income this year as it closes the wireless mobile kiosks inside Sam's Club stores. The company is expected to run kiosks in 1,490 Target stores by April-2011.
RadioShack cycling team
In 2009, Radio Shack announced plans to sponsor seven-time Tour de France champion Lance ArmstrongLance Armstrong
Lance Edward Armstrong is an American former professional road racing cyclist who won the Tour de France a record seven consecutive times, after having survived testicular cancer. He is also the founder and chairman of the Lance Armstrong Foundation for cancer research and support...
's newly created professional cycling team in 2010.
Corporate headquarters
In 2001 Radio Shack bought the former Ripley Arnold public housing complex in Downtown Fort WorthDowntown Fort Worth
Downtown Fort Worth is the central business district of Fort Worth, Texas, United States.* Sundance Square - Fort Worth's downtown has is an 8 block entertainment district for the city. The Square has brick-pavers, sidewalk cafes, and landscaping which set it apart...
for $20 million. The company razed the complex and had a 900000 square foot corporate headquarters campus built after the City of Fort Worth approved a 30-year economic agreement to ensure that the company stayed in Fort Worth. The company sold the building and, as of 2009, had two years left of a rent-free lease in the building. The company intended to make $66.8 million in the deal with the city. By 2009 it made $4 million; by 2009 the Fort Worth Star-Telegram
Fort Worth Star-Telegram
The Fort Worth Star-Telegram is a major U.S. daily newspaper serving Fort Worth and the western half of the North Texas area known as the Metroplex. Its area of domination is checked by its main rival, The Dallas Morning News, which is published from the eastern half of the Metroplex. It is owned...
reported that the company was considering a new site for its headquarters. The Tampa Bay Business Journal reported that rumors spread among Tampa Bay Area
Tampa Bay Area
The Tampa Bay Area is the region of west central Florida adjacent to Tampa Bay. Definitions of the region vary. It is often considered equivalent to the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area defined by the United States Census Bureau. The Census Bureau currently...
real estate brokers and developers that RadioShack may select Tampa as the site of its headquarters.
In 2010, however, RadioShack announced efforts to remain at their current site.