What Would Best Buy Do With Radio Shack?
Business Insider asks this question.
In short: absolutely kill it. To my mind, RadioShack has three assets: private labels, their brand, and locations galore. Best Buy would be paying for their footprint. Period.
Right now, Best Buy’s business is strong, but they keep making efforts to expand into service like Geek Squad and equipment set-up. The margins for this business are absurd. With RadioShack, Best Buy gets to scale that product to every small town. Additionally, they have the robust shipping back-end to virtually stock products in each of these stores, solving RadioShack’s big problem of not being able to sell high-end items (cause they need to mark it up too high).
For example: you can browse a RadioShack/Best Buy and pick an item, but not take it home. In 3 days, Best Buy delivers that shipment to the local store and the Geek Squad comes to your house and installs it. The sticker price matches the Best Buy big box store and the markup shifts to the service.
