« Forbes compares Facebook to GameStop: "Will you invest with your head or your heart?" | Main | Regal Entertainment announced as first tenant for Benbrook's The Trails Town Center »

05/17/2012

Fort Worth's RadioShack: 1 in 3 consumers knows we sell wireless

RadioShack has a lot in the stewpot these days.

It’s trying to drive sales of its mobility products, push high-profit accessories to make up for lower wireless margins, use consumer electronics to draw traffic and show RadioShack as a price leader, add services, and get consumers to recognize it’s in the wireless business., Jim Gooch, the chief executive, said during the company’s annual shareholder meeting Thursday.

"Only one in three people have any unaided awareness that we’re in the mobility business," Gooch said, citing company research.

But RadioShack has a lot to work with, Gooch said. It’s carrying the top three wireless providers’ products, and it continues to boost the numbers of its stores that are carrying the Apple iPhone and iPad.

The company also recently signed Gray New York – creator of the E*Trade baby commercials - to be its lead creative agency of record, with the first of that campaign expected to emerge later this year.

"I’m very excited to have them take control of the messaging," Gooch said.

Beyond broadening consumer awareness that RadioShack sells wireless, RadioShack also wants to promote that its a price leader.

"Right now, there’s a significant gap between perception and reality," he said. "We actually have market-leading prices out there in mobility, but we’re not given credit for it."

RadioShack’s Mexico stores, now at 200, could double within the next three to five years, Gooch said.

Business at the company’s rollout of Target Mobile centers, off to a slower start than expected and also contributing to the pressure on profit margins, should get better, Gooch said.

"I think you’ll see us improving the top line as well as the strength and profitability of the business," he said.

RadioShack said recently it lost $8 million in the first quarter, compared to a $35.1 million profit in the same period a year ago, as it continues to work the transition to wireless.

- Scott Nishimura

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef0168eb938128970c

Listed below are links to weblogs that reference Fort Worth's RadioShack: 1 in 3 consumers knows we sell wireless:

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

So that's why all those RS emails I get are shilling mobile products!

The comments to this entry are closed.

-->

Category Cloud

Blog powered by TypePad
Member since 01/2007