Can Electronics Stores Survive ?

[Hum]

Not long ago, retailers such as Best Buy Co. (BBY), GameStop Corp. (GME) and RadioShack Corp. (RSH) were outmuscling competitors across America by offering one-stop shopping for the latest televisions, computers, videogames and gadgets.

Now all three are fighting to survive. The rise of online competitors like Amazon.com Inc. (AMZN) that offer low prices and downloadable products have siphoned customers and sales from these once-powerful retailers.

The retail chains are responding with turnaround strategies that highlight their abilities to obtain hot new smartphones and tablets, and are trying to capture those purchases that consumers still prefer to make in person.

But they concede they have to evolve fast. "There is a future for consumer electronics in retail," insists GameStop's chief executive, Paul Raines. "But in order to survive, our internal rate of change has to be greater than the external rate of change."

Best Buy recently reported profit fell 91% last quarter on the eighth sales decline in nine quarters at stores open at least 14 months. Its founder is trying to take it private.

RadioShack suspended its dividend last month after posting its largest quarterly loss since 1996. GameStop's profit fell 33% last quarter due to declining sales of game discs and consoles.

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[n_K]

Same as in the UK, I'm surprised maplins is still going.

Don't get me wrong, if I want components to build something pretty fast then I'll use them despite that I can get everything so much cheaper on ebay or rapid electronics but waiting a few days is just annoying.

But every time I go in there I feel hounded by their staff 'Can I help you?' 'No thanks', 'Would you like some vouchers sent to you in the post with your purchase?' 'No', 'Would you like to include 4 AA batteries with your purchase for just ?1.50?' 'NO!', 'How about a current edition of the maplins catelogue for just ?2.99?' 'no.'. It's very annoying.

[The_Decimator]

I still want good ol', not-owned-by-Gamestop, EB Games back...

[sagum]

Interesting article.

that offer low prices and downloadable products have siphoned customers and sales from these once-powerful retailers

One thing I hate is when they play the blame game. Fact is, they over charged in the first place and didn't move with the times quick enough. Its thair own fault for having higher prices then online services. They both get the goods from the same sources, sure they might have a slighly more over head for local store staffing and rent but thats mittagated by the online stores warehouse, staff etc.

The fact that they even say downloadable products are an issue is a joke in itself, and I rate it up there with the same that blame piracy.

Fact is, these shops are buying used games and re-selling them for pure profit. Zero of that goes back to the publishers or developer and they wonder why they don't get bigger discounts from them...

not only that, but they down right rip customers off with the prices as well for physical online sales of the same product in store so its not just downloadable products. Its an excuse, a lame excuse.

As much as I hate shopping, I do actually prefer to visit instore, talk to staff about the products I'm about to buy, see them and if I can hold, and have a hands on experiance. Instead we get stores that pretty much lie to us with stupid gimmicks and bad wording to favour a certain product, ie expensive TVs. Staff are not being properly trained and talk bull**** about something they clearly have no clue about. Its a real shame they've not embraced what a brick store has over online stores.

[+Gary7 Subscriber²]

Radioshack might.

[togermano]

I recently had to go to radioshack to replace resisitor/capacitor there staff was competely dumb when it came to this stuff.... But they know how to sell a cellphone....The only thing they got going for it is that I dont have to wait for shipping if they have an item in stock otherwise online has better quallity parts and prices

[ATLien_0]

Best buy is probably the only electronics store I still go to. RadioShack sometimes, but I go there looking for electrical components. Though with RadioShack their prices can be much higher for a cheap part compared to other websites like Mouser.

[The Laughing Man]

I still want good ol', not-owned-by-Gamestop, EB Games back...

I want Funcoland back.

[Osiris]

The reaping is coming for bricks and mortar stores.

[exotoxic]

Same as in the UK, I'm surprised maplins is still going.

Don't get me wrong, if I want components to build something pretty fast then I'll use them despite that I can get everything so much cheaper on ebay or rapid electronics but waiting a few days is just annoying.

But every time I go in there I feel hounded by their staff 'Can I help you?' 'No thanks', 'Would you like some vouchers sent to you in the post with your purchase?' 'No', 'Would you like to include 4 AA batteries with your purchase for just ?1.50?' 'NO!', 'How about a current edition of the maplins catelogue for just ?2.99?' 'no.'. It's very annoying.

I like maplins, never been "hounded" by staff and the one i go to has a few people at the electronics counter that know what they are talking about (Y) but they are quite expensive compared to online.

One time we accidentally stole a catalog, they were by the door, not till we got home did we see it has a price on it :rofl:

[+jamesyfx Subscriber²]

Same as in the UK, I'm surprised maplins is still going.

Don't get me wrong, if I want components to build something pretty fast then I'll use them despite that I can get everything so much cheaper on ebay or rapid electronics but waiting a few days is just annoying.

But every time I go in there I feel hounded by their staff 'Can I help you?' 'No thanks', 'Would you like some vouchers sent to you in the post with your purchase?' 'No', 'Would you like to include 4 AA batteries with your purchase for just ?1.50?' 'NO!', 'How about a current edition of the maplins catelogue for just ?2.99?' 'no.'. It's very annoying.

The staff have to say those things because that's what most customers expect, as it's part of the mystery shopper guideline. If you don't like talking to people in stores, then just buy online.

[+Gary7 Subscriber²]

I recently had to go to radioshack to replace resisitor/capacitor there staff was competely dumb when it came to this stuff.... But they know how to sell a cellphone....The only thing they got going for it is that I dont have to wait for shipping if they have an item in stock otherwise online has better quallity parts and prices

Most customers that are purchasing Caps/resistors and such don't need help from a Radio Shack clerk. We used to have a real electronic store here but they went out of business. All the parts I need I get online.

[n_K]

The staff have to say those things because that's what most customers expect, as it's part of the mystery shopper guideline. If you don't like talking to people in stores, then just buy online.

As I said I only use them if there's something I want fast, and it's honestly part of their mystery shopper criteria? What a job that must be, hearing the same long-winded rubbish all day long =/.

I dare say it's even worse working for maplin, none of them seem to happy with their jobs and I'd probably say having to remember/recite all that stuff is the biggest reason why.

[siah1214]

The staff have to say those things because that's what most customers expect, as it's part of the mystery shopper guideline. If you don't like talking to people in stores, then just buy online.

This. And you know what, for every customer that doesn't want help, there's 5 or 6 customers that would chew you out and demand to speak to your manager for NOT asking them those questions. Working in retail blows.

[sagum]

As I said I only use them if there's something I want fast, and it's honestly part of their mystery shopper criteria? What a job that must be, hearing the same long-winded rubbish all day long =/.

I dare say it's even worse working for maplin, none of them seem to happy with their jobs and I'd probably say having to remember/recite all that stuff is the biggest reason why.

No, it?s not part of the mystery shopper criteria. Hehe. Store policy maybe, but mystery shoppers have a task to do. They report back on what happened in detail for the company to read.

So if I was a mystery shopper, the task would be set for me. Go to Maplin's store and buy a 4 pack of Maplin AA rechargeable batteries, no. 392432 (or whatever it is). This is the shopping part and you normally need to keep hold of the receipt for a reimbursement and proof you went into the store. Along with that, you may have additional tasks you need to complete while in the store, such as ask about a certain product or pay special interest to something, such as if the staff greeted you or if they asked you if you needed rechargeable batteries and maybe if they were for a digital camera or not Etc.

Later, you'd write up a report of the experience of shopping there, including all details about it, including things like if the staff were helpful (or not), if you felt under pressure due to all the sales tactics, or maybe there was stuff left out on the floor or the staff didn't know what they were on about when you asked about the types of LEDs they sold. Hand it in with the receipt and you get paid and Maplin gets a report from a shoppers point of view of that store.

[Anibal P]

As I said I only use them if there's something I want fast, and it's honestly part of their mystery shopper criteria? What a job that must be, hearing the same long-winded rubbish all day long =/.

I dare say it's even worse working for maplin, none of them seem to happy with their jobs and I'd probably say having to remember/recite all that stuff is the biggest reason why.

You're not a typical shopper is why, some people get mad if they aren't accosted by a store employee all the time, it makes them feel important, while the rest of us normal types just want to go, get my item and get out ASAP

[+Warwagon MVC]

One reason I like ordering online, is because I get an email receipt. I have all of my email receipts categorized and stored in Thunderbird and in All Mail in gmail. My email is also backed up to carbonite, an internal drive, 1 disconnected regular 3.5 inch3 3TB sata drive (once per month) and an offsite deposit box backup (also once per month). I hate paper receipts.

[siah1214]

You're not a typical shopper is why, some people get mad if they aren't accosted by a store employee all the time, it makes them feel important, while the rest of us normal types just want to go, get my item and get out ASAP

Exactly this! I swear half the people that walk into retail stores don't get enough attention from their parents/spouse/whomever so they just go to stores where minimum wage employees have to pay attention to them.

[Growled Member]

No, they can't survive. I go into those places mainly to window shop. I buy almost everything online. I get most of my games from Gamefly. And I'm not alone either.

[Silver47]

The staff have to say those things because that's what most customers expect, as it's part of the mystery shopper guideline. If you don't like talking to people in stores, then just buy online.

Thankyou! Where I work I'm expected to offer three possible things, payment options, warranty and installation in case of a mystery shopper. But at the end of the day its just about making customers aware we provide those services, but I'm not expected to force them on people.

[Anibal P]

Thankyou! Where I work I'm expected to offer three possible things, payment options, warranty and installation in case of a mystery shopper. But at the end of the day its just about making customers aware we provide those services, but I'm not expected to force them on people.

In most instances you approaching me is the problem, not all customers need to be babysat the whole time, the rare time I would go to a store I know what I want, I'll go top the section grab what I need and try to get out ASAP, trust me most of your customers know more than you about what we want, and the ones that are clueless are obvious, the only time you should talk to me is if I ask you for help, that's your job, you trying to sell me anything else will likely lose you a sale, tell that to your bosses, we tried at an old job, they never listened

[remixedcat]

I prefer places like this becuase I don't want to wait 2 days just to get a simple thing like headphones, cables, routers, etc.,.. I love being able to savor the goods asap. Plus I hate tying my day up with shipping.

[astropheed Veteran]

One reason I like ordering online, is because I get an email receipt. I have all of my email receipts categorized and stored in Thunderbird and in All Mail in gmail. My email is also backed up to carbonite, an internal drive, 1 disconnected regular 3.5 inch3 3TB sata drive (once per month) and an offsite deposit box backup (also once per month). I hate paper receipts.

That seems a bit excessive.

[+Warwagon MVC]

That seems a bit excessive.

That's my overall backup system. Thunderbird is just part of it.

[sagum]

In most instances you approaching me is the problem, not all customers need to be babysat the whole time,-snip-

Sorry had to snip you there. Please re-read what you are replying to.

Thankyou! Where I work I'm expected to offer three possible things, payment options, warranty and installation in case of a mystery shopper. But at the end of the day its just about making customers aware we provide those services, but I'm not expected to force them on people.

These types of stores managers do not care about the the customer. They only care for their own job and looking good for their boss. Mystery shoppers are brought into the company because of managers like this. Sorry but to be even told anything along the lines of incase of a mystery shopper is shocking. I know full well that you might very well get one but the service should be there for the customer. The people who spend their hard earned cash in the store. Sorry not a rant at you Silver47. Its just I expect to be treated like a customer and an individual .. buying from brick stores often comes at a permium, thats why goods are more expensive.

The mystery shopper is still going to report back on how poor the rest of the shop experiance has been and if they have been doing it for a while will know full well that a offering like that is pushed if the rest of the shop doesn't follow the same company policy. Mystery shoppers will ask other questions, and sometimes your answers can't be suited from a pre-determined responce you've been told to reply via your manager.. in case of a mystery shopper.