RadioShack Debuts New Store Concept5 Aug, 2002 By: Hive News
Building on lessons learned from its initial prototype concept store design launched in Tucson, Arizona, RadioShack Corp. today unveiled its newest "Best To Shop" concept store at the Charles D. Tandy Center, the site of RadioShack's corporate headquarters in Fort Worth, Texas.
"This newest concept is the next step in our quest to gain further relevance with the consumer,” said Leonard Roberts, chairman and CEO of RadioShack. “This refreshing store design supports our focus on anchor businesses and the growing digital product revolution and allows us to expand our assortment to exceed our customers' expectations."
According to David Edmondson, president and COO, RadioShack gained many insights from its initial concept stores in Tucson.
"The Tucson model was successful in many ways and this latest concept builds on what customers want from us in terms of both products and the shopping environment," he said. "Tucson customers loved the contemporary design, which is warm and inviting and very customer friendly. And while the shopping experience allowed us to exceed sales forecasts, store construction costs did not meet our goal, which is critical if we are to expand a new store design concept across 5,100 company stores nationwide."
The company instituted value engineering to reduce capital costs while maintaining the strengths of the initial concept, Edmondson said. For example, the Tucson stores featured the sales counter at the front of the store, but that created in-store traffic flow problems. Shoppers in Tucson also favored the brighter color scheme of lime green, orange, purple and blue. The sleek, contemporary look with bright colors expanded RadioShack's appeal to women and younger shoppers. Shoppers also liked the wider aisles, the product accessibility and the ability to interact with the products.
In this latest concept, customer flow has been redesigned around a sales counter in the middle of the store. More designed point-of-purchase store signs tell customers exactly where merchandise is and provides information about the benefits of the products. The bright color schemes remain the same, yet the color palette can be changed inexpensively through wall system fixtures. Store associates can completely change the layout of merchandise and store colors within hours.
This concept will be larger than a typical RadioShack, which averages 2,200 square feet. The average layout in this new store prototype is 2,700 square feet to allow for the wider aisles and more open space. The latest prototype concept will also roll out to 20 Jacksonville, Florida stores this fall in a transformation that begins this month and will be completed by year's end.
In the meantime, company executives are eager to study consumer reaction in their own neighborhood.
"We're eager to experience consumer reaction here in Fort Worth as well as in Jacksonville," said Edmondson. "We consider the Fort Worth store a living laboratory that will enable us to measure consumer response and experiment with new ideas. Operating a concept store within our corporate headquarters will also allow employees to view first hand how the new design is received by consumers which will help us further refine the concept. This store is considered an ongoing focus group."