Imagine a retail chain so important that every well-populated area with at least a middle-class income had one.
In some cases, chains that had this level of penetration died for a good reason. Blockbuster was that big, but it had a core product that ultimately became unnecessary.
Related: Beloved DIY retailer suddenly announces it’s closing for good
Who would go to a physical store to rent a movie when they can easily stream one? You can talk about all the mistakes Blockbuster made (like not buying Netflix) but ultimately streaming was going to replace physical rentals no matter what the company did.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵
Sears, which was once the dominant retail brand in the United States, killed itself slowly over decades. There was no one single bad decision, it was just death by a thousand paper cuts, with a big chunk of incompetent management over its last few years.
Radio Shack was a much different story. It was once a mighty brand that slipped quickly into irrelevancy. It still exists, although with its latest closure, its store count has slipped to below 50 in the United States.
Best Buy hurt Radio Shack but the company’s stumbles were largely its own fault.
Image source: Shutterstock
Radio Shack was once a mighty brand
Just 15 years ago, my wife and I lived in a mid-sized Connecticut town when the mall hosted a Radio Shack and there were also two other branches within three miles of our house. Basically, the chain was the electronic version of Dollar General when it came to having locations near potential customers.
It had an amazing footprint that was required because the chain sold electronics needed by nearly everyone. Whether it was a printer cable, coax for cable television, blank tapes, or other items, there were no easy ways to buy these items.
At its peak, Radio Shack had over 8,500 locations in the U.S. and was one of the most successful retail brands in the world. Its decline was both sudden and painfully drawn out, as it has survived multiple bankruptcies when it easily could have disappeared.
Retail and restaurant bankruptcies:
Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy
The chain suffered beginning in the ’90s, when Best Buy grew to prominence. Amazon furthered that decline by selling items at much cheaper prices than Radio Shack.
Had Radio Shack lowered prices, it might have retained much of its business because it was much more convenient than waiting for delivery. Even as Amazon improved delivery speeds, the convenience of the chain’s brick-and-mortar locations would have kept it competitive.
Radio Shack still exists, but keeps getting smaller
Radio Shack, however, never adjusted prices and through two bankruptcy filings, lost the retail footprint that was once its largest advantage.
Now, the chain has new owners, and they are trying to leverage the company’s history.
“RadioShack is an iconic American chain of consumer electronics stores since 1921. For over a century, RadioShack has been the go-to destination for tech, offering a wide range of products from innovative gadgets to essential electronic components,” it shared on its website.
That’s technically true, but the chain’s retail fleet keeps getting smaller.
The last Radio Shack in in Calvert County, Maryland is closing its doors for good later this month. After 50 years of operation, the decision was made to close in January when its owner, Michael King, died, NBC Washington reported.
One customer, Andre James, dropped in for the going-out-of-business sale, and his comments pretty much explain where the brand is now.
“I used to shop at Radio Shack,” he said. “I didn’t think Radio Shack existed anymore.”
Related: Struggling fashion chain closing 100 stores to avoid bankruptcy
The once-mighty chain, with the latest closure, now has less than 50 U.S. locations. Its parent company does still have big goals in its home market.
“At RadioShack, we pledge to enrich lives in the U.S. with a diverse range of gadgets that redefine daily living. Our commitment to quality ensures that every product in our lineup reflects our passion for technology,” the company posted.
And despite its shrinking size, the chain at least has a clear mission.
“We aim to deliver products that not only meet but exceed industry standards, consistently pushing the boundaries of innovation. As we grow, we are dedicated to introducing products that enhance day-to-day lives,” it added.
