Yep. And if Fry's had anywhere near the store/location density of Radio Shack even in the markets where they do operate then they'd be in serious trouble too.
That's the whole point- Fry's wasn't stupid enough to try and open 1,000 tiny little stores with no selection and operate like it was still 1988. Of course they would go under to if they emulated Radio Shack.
YES, there aren't nearly enough electronics hobbyists to support Radio Shack through component sales with the number of stores they have, but they also didn't have nearly that many stores when they first started turning their back on that market. Now that almost half their components are "online only" they have a worse selection than an auto parts store, which is truly sad.
There's kind of two different arguments being made here. I don't strictly think Radio Shack should have catered to the "hobbyist" market only- that's only part of it. They should have catered to the much broader general electronics market, and been much smarter about it, as well as served the hobbyist market.
When I go to Fry's, I can buy anything from a fairly decent range of motherboards, to printers, to general appliances, to specialized circuit boards, to batteries of any size/type to stereo equipment, to all full range of computers/tablets, gizmos, software, etc. etc.
Like I say, Fry's doesn't do everything right, but they do understand that a modern electronics store has to rival the choices one can get online, and cater to a broad spectrum.
Radio Shack, frankly doesn't seem to cater to anybody, except for those who simply don't know any better.
Do people replace their car every day? Auto dealers get by.
Their computer? Dell's still here.
Dumb examples. Auto dealers actually have gone out of business left and right- many are operating on an outdated model that demands artificial protections. (Such as how they're trying hard to keep the manufacturers from selling direct.)
PCs have razor thin profit margins. Dell's main business isn't trying to sell them out of tiny, outdated strip mall stores.
Their wardrobe? Mine ain't on a 2 year rotation. (My heavy work boots are 13 years old [seen putting a house on jacks and digging out and pouring a full basement], and I'm pretty sure I have jeans that are pushing a decade.)
That's the worst apples/oranges comparison to the cellphone sales model yet.
Cell phone manufacturers are still here. Cellular service providers are still here.
No ducking fuh.
Radio Shack soon WON'T be here. Another dumb non-argument; as if someone else's success floated Radio Shack out of a bad business model.
In 2011, mobile phones sales represented 51% of Radio Shack's entire business up from 44% in 2010.
So the majority of their sales was selling something that hasn't sustained their business! You may not realize it, but you're making the point for those of us that are saying they should have concentrated on what worked, not what didn't!
51% of your business selling something that hasn't allowed your business to succeed= FAILING!
Any consultant who suggested RadioShack forgo their bread-and-butter mobile phone sales should have found another line of work.
Yeah, "bread and butter" that's starved them to death.
...but weren't in any true danger till around the end of Q4 2012... when mobile sales faced a steep decline.
Wow. Nice way to wax over EXACTLY what I was talking about- riding a wave initially, and then crashing when it ran out.
Gee, they weren't in *any* danger- until they put 51% of their eggs in an unsustainable basket!
Now THAT'S a great business model! NOT!
I think it reflects the old saying about leading a horse to water, but not being able to make it drink-think.
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