Should Amazon Buy RadioShack?

[tubemonkey]

With Amazon building warehouses like crazy all over the country, isn't it time they set up small showrooms for their Kindle line; and possibly other products?

And what better chain to snatch up than ailing RadioShack and its 4,400+ US locations. Of course Amazon won't need all of those stores, so they can keep the prime locations and sell off the rest.

RadioShack is on its way to oblivion and I like the idea of turning its stores into Amazon fronts.

And if not Amazon, what about Google?

Online retail giant Amazon has been inching toward having a physical retail presence in the US and UK through the installation of lockers at grocery stores, drug stores and other retail locations, like 7-Eleven, Staples, Walgreens and RadioShack. Amazon users can place orders online that are delivered to the lockers, avoiding hassles such as missed deliveries.

But instead of setting up lockers at various random locations, Amazon could establish a broad physical presence for dirt cheap with one bold move: It could buy RadioShack.

The US electronics retailer has lost more than 80% of its value in three years and is now worth just $325 million on the market. RadioShack has more than 4,400 stores in the US alone and 90% of them are within a two mile-radius of city and town centers.

[murraypaul]

Originally Posted by tubemonkey

With Amazon building warehouses like crazy all over the country, isn't it time they set up small showrooms for their Kindle line; and possibly other products?

Are they lacking places that show and sell Kindles?
Certainly in the UK there is no lack of places to find one.

[tubemonkey]

Originally Posted by murraypaul

Are they lacking places that show and sell Kindles?
Certainly in the UK there is no lack of places to find one.

Walmart and Target stopped selling them last year.

[JSWolf]

Originally Posted by tubemonkey

Walmart and Target stopped selling them last year.

Bestbuy still has Kindles.

[tubemonkey]

Originally Posted by JSWolf

Bestbuy still has Kindles.

US Stores by Retailer

• Best Buy -- 1100+ stores
• Target -- 1700+ stores
• Walmart -- 4600+ stores

Losing Target and Walmart cost Amazon over 6300 showrooms.

[susan_cassidy]

But, people still buy Kindles from Amazon in the thousands, or tens of thousands. Why should they buy Radioshack just to sell Kindles, when they are doing fine selling Kindles already? Besides, people tend to go to Radioshack to buy parts and accessories, not devices. I don't think it wouod be a good move.

[charmian]

Wouldn't it be cheaper just to pay RadioShack to carry them? Or to have 7-11 carry them? Rather than getting 4000+ struggling locations.

[tubemonkey]

Originally Posted by charmian

Wouldn't it be cheaper just to pay RadioShack to carry them? Or to have 7-11 carry them? Rather than getting 4000+ struggling locations.

RadioShack is headed for bankruptcy. Getting them to carry Kindles won't save them. It's best to buy them out and change the name to Amazon or Google. Prime locations kept and the rest jettisoned.

[BWinmill]

The best place to sell Kindles is in book stores. (Which is pretty much what Kobo does.) Unfortunately, Amazon is their competitor.

I'm not confident that selling Kindles in electronics stores will do much to help their cause.

[tubemonkey]

Originally Posted by susan_cassidy

But, people still buy Kindles from Amazon in the thousands, or tens of thousands. Why should they buy Radioshack just to sell Kindles, when they are doing fine selling Kindles already? Besides, people tend to go to Radioshack to buy parts and accessories, not devices. I don't think it wouod be a good move.

Then why did Amazon sell Kindles in Target and Walmart?

Like B&N, RadioShack will not survive. Trying to turn RS around is an exercise in futility.

[camiller]

RadioShack is basically a cell phone store anyway. I don't see it being a huge benefit for Amazon.

[tubemonkey]

Originally Posted by BWinmill

I'm not confident that selling Kindles in electronics stores will do much to help their cause.

The idea is to buy out RS and change the name to Amazon. RS and its products would become a thing of the past. Amazon would then have a physical presence to sell its products.

Amazon will not remain solely as an online entity. At some point, they will establish Amazon branded storefronts. RS can be had for a song, so it's a good candidate to get the needed locations.

[murraypaul]

Originally Posted by tubemonkey

The idea is to buy out RS and change the name to Amazon. RS and its products would become a thing of the past. Amazon would then have a physical presence to sell its products.

But why?
Amazon are successful because they sell essentially everything.
An online store can sell as many products as they want, and doesn't have the overhead of running retail outlets.
By moving into stores, they suddenly have a very limited amount of stock available, lose their major advantage and pick up a significant disadvantage.
Why?
Retail stores are failing because they are being beaten by companies like Amazon.
Why would the winners want to become the losers?

[tubemonkey]

Originally Posted by murraypaul

But why?
Amazon are successful because they sell essentially everything.
An online store can sell as many products as they want, and doesn't have the overhead of running retail outlets.
By moving into stores, they suddenly have a very limited amount of stock available, lose their major advantage and pick up a significant disadvantage.
Why?
Retail stores are failing because they are being beaten by companies like Amazon.
Why would the winners want to become the losers?

I buy very few physical items from Amazon, because returns are a hassle and free shipping is a pain because of lengthy delivery times and minimum thresholds. So my preference is to either buy in store or online with free ship to store.

On the other hand, Amazon is great for digital purchases.

Still, that begs the question as to why Amazon bothers to sell Kindles in retail stores to begin with.

[murraypaul]

Originally Posted by tubemonkey

Still, that begs the question as to why Amazon bothers to sell Kindles in retail stores to begin with.

Having Kindles available to check and buy in retail stores is a big positive for Amazon.
But they don't have to run their own stores to have that. Chucking a bit of marketing money at existing stores can achieve the same end with none of the overhead.