Analysis: RadioShack pulls out the stops as it heads into holidays
New York — The holiday season is crucial for nearly all retailers, but perhaps no big chain has as much at stake this year as beleagued RadioShack, which on the day before Thanksgiving announced the launch of its redesigned web site, the latest in a series of holiday initiatives. There is little mystery as to why the retailer is pulling out all the stops as its heads into the holidays: A poor performance could leave RadioShack in a vulnerable position come the new year, especially with investor and shareholder Standard General.
The hedge fund company led a $120 million infusion of cash into Radio Shack in October, providing it with badly needs funds necessary to stock up for upcoming holiday season. Some analysts, however, described the lifelife as a temporary stopgap that would only delay a Chapter 11 filing untill 2015. In order for the loan to convert into equity rather than add to the company's already huge debt, RadioShack must deliver "changes to a supplier contract, at least $100 million in cash and borrowing capacity by Jan. 15, a financial plan for 2016 meeting certain requirements, and the completion of a rights offering of as much as 700 million shares, Reuters reported. That’s a big burden—even with a good holiday.
Given the pressure, RadioShack is doing all it can to entice shoppers. In the weeks leading up to Black Friday, RadioShack announced an array of holiday initiatives, including free shipping on all online orders beginning Wednesday, Nov. 26 at 11 p.m. EST, through Saturday, Dec. 6., a television ad campaign starring “Weird” Al Yankovich, and an updated and more diverse merchandise mix that includes such trendy items as wearable tech products.
RadioShack’s redesigned web site includes such new features as dynamic merchandising capabilities that enable it to deliver quicker product and inventory updates, and real-time pricing functionality that allows the brand to make quick price adjustments to meet and beat pricing comparisons with major online competitors. The site also boasts a more uncluttered design that is organized more by interest, category, theme or seasonal topics.
"We know our customers are multichannel shoppers, and we wanted to provide a better experience that reflects our brand and makes it easier for our customer to shop no matter where they are," said Jennifer Warren, chief marketing officer at RadioShack. "We approached our website design in the same way we approached our recent brick-and-mortar designs: to be dynamic, solution-oriented and inspirational for our customers.”
The redesigned web site is the latest of an array of holiday initiatives launched by RadioShack, including free shipping on all online orders beginning Wednesday, Nov. 26 at 11 p.m. EST, through Saturday, Dec. 6., a television ad campaign starring “Weird” Al Yankovich, and an updated and more diverse merchandise mix that includes such trendy items as wearable tech products.