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Radio Shack for HDTV?

August 16, 2006 | Author: Ibex Marketing

I’ve reported here already about Radio Shack’s plans to bring HDTVs into its stores. The question now is whether or not they will be in financial shape to make the transition. The company has already closed 480 stores, leaving about 6,000 stores. And last week, they announced that they will be cutting as many as 450 jobs, mostly at their headquarters.

Cell phone sales have not been working well for Radio Shack, in a time when other cell phone outlets have reported significant growth. The limited floor space of a typical Radio Shack store will make it difficult to carry many large flat panels, so making the transition from small cell phones to large TVs could be difficult at best. A look at the company Web site today lists only two of the 37 LCD TVs as “available at most stores“, and these are 26″ and 32” Panasonic models that appear to be selling for more than the advertised price at Best Buy.

I can understand Radio Shack’s desire to get into the HDTV business, but I still question whether they have the horsepower to make it work. Would you think of going to a Radio Shack store if you were shopping for an HDTV?