Here is the latest news regarding Radio Shack...
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Amazon Is in Talks to Buy RadioShack Stores, Report Says | WIRED
A Radio Shack store in downtown Cincinnati, March 4, 2014. Al Behrman/AP
Amazon may soon take another leap into the world of brick-and-mortar retail.
According to Bloomberg, the company has been in talks with RadioShack about
acquiring at least some stores from the ailing retail chain. The stores
would become showcases for Amazon's own products, such as the Kindle
e-readers and tablets, and serve as pick-up and drop-off sites for Amazon
customers.
RadioShack is on the verge of declaring bankruptcy, and according to other
reports, it has also been in talks with wireless carrier Sprint about
selling some of its stores. The deal with Amazon may not happen, but
nonetheless, it shows where Amazon is headed.
To head off competition from Wal-Mart-one of the few retailers that could
pose a legitimate threat to Amazon-and to expand its operation, the company
has adopted a new hybrid business model, combining e-commerce with offline
services.
Amazon has already built a small physical presence across the country with
its Locker program, which enables customers to pick-up packages at 7-Eleven
stores and other locations-including RadioShack stores at one time, though
the chain dropped out of the program. Meanwhile, it's moving into same-day
delivery, running its own grocery delivery service and even offering
one-hour delivery for certain products in Manhattan. Rumors also indicate it
will soon open a flagship retail space in Manhattan.
As we've put it before, the point of an Amazon store isn't really to provide
a new place to shop. It would be a way for Amazon to market its own products
and services, including the Kindle and Amazon Prime, and to run a
distribution center for its same-day delivery services.
Acquiring some RadioShack's locations could fit with that strategy, giving
Amazon a way to quickly extend its footprint into hundreds more U.S. cities.
But that doesn't mean it'll happen. Amazon could benefit from an existing
supply chain for piping goods into and out of a series of low-rent physical
locations. But given that Amazon has its own hyper-customized logistics
practices, it could be hard for it to absorb another company's processes.
But the fact that Amazon is even interested in acquiring part of a brick and
mortar chain shows just how much the retail business, both online and off,
has changed in recent years.
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Dr. Ronald E. Milliman
Retired Professor of Marketing
President: Millitronics, Inc. (millitronics.biz)
President: South Central Kentucky Council of the Blind (SCKCB.ORG)
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