Is there hope for a profitable RadioShack?

With James Gooch, the CEO of RadioShack stepping down, there are serious questions about the future of the former electronic retail powerhouse.

With mounting losses resulting from a change in consumer needs and decreasing market share to online retailers, is it still possible for brick and mortar stores to be successful?

The factors behind the decline in stock price of RadioShack are obvious. Many people have all of the electronic devices they need in their pocket, thanks to their smartphone. Desktop PCs and other items that were big-ticket items in the past have been consolidated into smaller phones and tablet devices, which are more competitively priced and have much smaller profit margins for retailers.

Online retailers allow consumers to quickly and easily research cost and quality variances. This, along with with the decreased overhead, has been something RadioShack has been unable replicate.

Past RadioShack CEOs have streamlined operations, decreased workforce and tried new branding, all textbook formulas for a revenue revival, but... it hasn't worked. What would it take for RadioShack to become a player among electronic retailers again if the standard procedures haven’t worked?

More importantly, is it possible for RadioShack stock to make you money? See how MarketClub has done with RadioShack in 2012…

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Be sure to comment below with your thoughts on RadioShack’s (NASDAQ:RSH) future and what symbols you would like to have MarketClub analyze.

One thought on “Is there hope for a profitable RadioShack?

  1. I think RadioShack has fallen behind the times and I can't see them rising back to the glory days. With that being said they do have an advantage over the internet based businesses. With something like 7,000 stores they have a chance to interact with customers, face to face interaction and knowledgeable staff is something online retailers cannot offer.

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