Radioshacks future

[Howlsatmoonlight]

Thought I would post this, it came to my attention while I was logged into Etrade, and it impacts the future of XMods.

This year, RadioShack (RSH) has been the subject of a variety of buyout rumors. The latest has come from a story in the New York Post, indicating that the company has retained JP Morgan (JPM) to explore strategic options, such as a possible leveraged buyout. A deal may be worth as much as $3 billion.

On the news, the shares of RadioShack were up 8.85% to $23.73 in mid-afternoon trading.

In light of the relentless changes in the retail landscape -- especially the current dominance of big-box retailers like Wal-Mart (WMT) and Best Buy (BBY) -- RadioShack certainly needs to think about shareholder value. Just look at the problems Blockbuster Video (BBI) is having, and the emerging issues at H&R Block (HRB); both are feeling the pain from Internet-based competition.

[taiwanesekid05]

You can tell RadioShack notices this because they're streamlining their products (less toys, such as Xmods) and are focusing on things that the majority of consumers would buy (computers, iPods, cellphones). The ads have definitely gotten smaller over the years and only include deals that match other stores like Best Buy and Staples.

[Howlsatmoonlight]

Interestingly enough net income increased $93 million last year to 205 million, and they have almost 1 billion banked. Basically they are trying to get a leveraged buyout by Best Buy.

The reason for the streamlining is that they hired Julian Day in 2005, who is known for helping companies recover, and was responsible for saving K-mart. He wasted little time in cutting back stores, cutting costs, laying off employees and changing the product mix.

Now I will stop boring everyone with financial crap

[taiwanesekid05]

Well, if they hired this Day guy back in 2005, he would have known about Xmod's release. Maybe they think that Xmods aren't sparking interest in kids anymore?

[Howlsatmoonlight]

I agree, seems like they have cut most of their toy selection in favor of consumer electronics. Most of the stores here are focused on cell phones and computer accessories, along with items like GPS devices.

[bondo]

look at it this way,if they stray away from minor consumers and completely sell out or sell off their stock of exclusive rights and those rights go to target or wal-mart,....Xmods for $15 a starter.
who cares who's sellin' em.
worry about who's gonna carry em.
as long as they make em,someone will carry em....bottom line.


SOOPAVILLAIN

[KITT222]

Best Buy is interested in buying them. I asked my dad, and double checked the web. Yep, Best Buy is interested. Maybe if it happens I could try and wiggle Xmod Trucks back into the line. Plus an inside look is always fun. What would happen to the little 'hole in the wall' stores? Would Best Buy do something like the Magnolia Home Theatres in their stores with Radioshacks, selling the radio component, and the little parts bin stuff? 'Mostly hypothetical' questions, since my dad has no say in what Best Buy buys, but the possibility is pretty cool from my standpoint.

But a real question, whatever happened to the name change to 'The Shack'?

[Howlsatmoonlight]

From what I read on my etrade bulletin Best Buy is interested in them mainly because they want to break into the 'micro store' demographic. They would continue to sell mostly what you see now, but a heavier focus on computers, cameras, cell phones, etc. When asked to clarify, they referred to the 'micro' sections in Best Buy currently, like the cell phone area which is mainly sectioned off from the main store.

[ravevolution]

Originally Posted by KITT222

Best Buy is interested in buying them. I asked my dad, and double checked the web. Yep, Best Buy is interested. Maybe if it happens I could try and wiggle Xmod Trucks back into the line. Plus an inside look is always fun. What would happen to the little 'hole in the wall' stores? Would Best Buy do something like the Magnolia Home Theatres in their stores with Radioshacks, selling the radio component, and the little parts bin stuff? 'Mostly hypothetical' questions, since my dad has no say in what Best Buy buys, but the possibility is pretty cool from my standpoint.

But a real question, whatever happened to the name change to 'The Shack'?

Bestbuy getting into the sell would be great, I shop there than other electronics stores anyways lol. Plus it would get them in the market with another electronics store that also sells R/C and other Toys, Fry's Electronics. The 'Shack' is streaming on what they are carrying and upping items that can make them compete with the other electronic retailers. Change their image to the small goto electronics store than your small hole in the wall place for when you need a telephone wall jack As for the name change well I guess progress is going but with the current economy and slow progress on getting back, don't think new signs a big priority, but more the revamping of stores and the way they compete in the market

[DRFTKO]

Originally Posted by bondo

look at it this way,if they stray away from minor consumers and completely sell out or sell off their stock of exclusive rights and those rights go to target or wal-mart,....Xmods for $15 a starter.
who cares who's sellin' em.
worry about who's gonna carry em.
as long as they make em,someone will carry em....bottom line.


SOOPAVILLAIN

As much as I can't stand Wal-Mart, I have wished that they would pick up some sort of RC line such as XMODS for a while now. Most towns have at least one Wal-Mart or more, so the possibility of more stock is there; not to mention the possibility of lower prices on starter kits and parts right off the bat. I guess that would just be a dream though...

[bondo]

Originally Posted by DRFTKO

As much as I can't stand Wal-Mart, I have wished that they would pick up some sort of RC line such as XMODS for a while now. Most towns have at least one Wal-Mart or more, so the possibility of more stock is there; not to mention the possibility of lower prices on starter kits and parts right off the bat. I guess that would just be a dream though...

i cant say i'm a big fan of wal mart either but you have to have a pretty big hard on against em to boycott em altogether.
they have everything and the majority of it's cheaper then small buisness can offer.

EXAMPLE:
my LHS stocks Revelle RPM'z for $89.99 per starter.
i walked into wally for some fitchin' gear and happened to walk past the clearance rack and what'ya know,sitting there were two RPM'z starters for $30 ea.
snagged both and sold one for $60 wich is still $30 cheaper then anywhere else in town that stocks em and made off with a freebie.
can't beat that with the proverbial stick right?
i didnt even know they sold em and here i got 2x for 2/3 the price of one.
ofcourse i went to see if i could find the regular marked price but i havnt seen another in stock since then.

imagine the new consumer base though if wally picked up on mods.
we might actually have a shot at new and more exciting models,not to mention a shot at getting back all of the upgrades that made the brand so much fun to begin with.
RS took a great toy and killed it with bad decisions and lack of effective advertising.

[XMDrifter]

i hope somebody picks Xmods up if RS goes out