Amazon In Talks To Buy Thousands Of Stores From RadioShack

Amazon In Talks To Buy Thousands Of Stores From RadioShack

RadioShack Store 3x3

Amazon stores would sell Fire products, act as pickup/drop-off locations.

Bloomberg is reporting that RadioShack and Amazon have started talks that could lead to the eCommerce giant buying a large chunk of retail holdings from the troubled electronics chain.

With 4,000 stores in the U.S., RadioShack has an established retail presence (even if it's failing) that could be rapidly re-purposed by the right buyer. Amazon has shown an eagerness to expand into brick-and-mortar retail in the past, hence the buyout talks. It's unclear if Amazon would buy all 4,000 locations.

If the deal were to go through, Amazon would use these new locations to showcase the growing range of Amazon products. Fire tablets, phones, and streaming devices, the Kindle line of eReaders, and a selection of Amazon-branded accessories (HDMI cables and the like) would be on display. The stores could also act has a shipping hub for online purchases, allowing eCustomers to pick up purchases, or drop off returns. Additionally, same-day delivery via the Amazon website could also operate out of select locations.

Also in the buyout mix? Sprint, which is said to be interested in up to 2,000 of RadioShack's locations, and Brookstone, a chain typically relegated to shopping malls.

RadioShack is on the verge of bankruptcy, and is going to be delisted from the New York Stock Exchange after defaulting on a $500 million loan. As the end is seemingly nigh, an asset firesale could help repay the defaulted loan, and settle some or all outstanding debts.

Source: Bloomberg

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So this would be like their version of the Apple store, eh?

It's a weird thing to think about. Once upon a time, if you'd told me that Amazon would one day be looking into buying out a dying chain of mall-sized retail stores, I'd have guessed Waldenbooks.

I could get behind this. There's a RadioShack just down the street from me, and it'd be nice to be able to pick up Amazon deliveries there if nothing else. UPS is a bitch about delivering to my apartment for some reason. And hell, it's not like they could make the merchandise quality worse or anything.

JarinArenos:
I could get behind this. There's a RadioShack just down the street from me, and it'd be nice to be able to pick up Amazon deliveries there if nothing else. UPS is a bitch about delivering to my apartment for some reason. And hell, it's not like they could make the merchandise quality worse or anything.

Have you tried the drop box service? I can get my Amazon stuff from a 7-11 down the street.

I would shop there only if the prices were the same as they are on-line, my need to have something now is low. Plus I have prime.

Oh if they do this I hope it's a radio shack near me I have prime and I buy everything on amazon

This seems a strange move to me. I still go to Radio Shack now and again- mostly for things like individual cables, audio connectors, and the like- but all but inevitably, I come out feeling that I would probably have had a wider selection to choose from, at lower prices and possibly higher quality, if I had not caved to my need for immediacy and bought the thing on Amazon.

Then there's the small fact that I once worked for Radio Shack out of college, which splits me between a sympathy for the managers and employees of individual stores and a wish that the uber-managers who were responsible for doling out stupid policies and threats would collectively die in a fire.

Anyway, that's neither here nor there. I guess the bottom line is- I wasn't shopping at Radio Shack with enough frequency to make a significant dent in their spiraling financial woes; I see no particular sign that I would start shopping there more if it was suddenly rebranded by the people I turn to when I don't want to do retail, brick-and-mortar shopping.

Dandres:
Have you tried the drop box service? I can get my Amazon stuff from a 7-11 down the street.

I would shop there only if the prices were the same as they are on-line, my need to have something now is low. Plus I have prime.

I don't have a drop box close to me right now, unfortunately. Hoping that RadioShack sign will be replaced with an Amazon swoosh soon.

And yeah, it would be remarkably silly of them to have a storefront markup. More likely, the stores will just focus on amazon's own products like Kindle.

 

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