Latest RadioShack layout calls attention to corporate brand - introduces updated prototype store

DSN Retailing Today, Dec 16, 2002 by Laura Heller

JACKSONVILLE, FLA. -- RadioShack unveiled its newest test concept here earlier this month; an updated prototype based on an earlier test in Tucson, Ariz. This latest incarnation boasts new signage, colors and product displays, allowing the chain to show off its expanded merchandise mix and focus more on the RadioShack brand than the partner programs of the recent past.

"Our brand has really taken over the store again," said Lou Provost, evp of sales channels. "After many years, we think it should stand out." As RadioShack built its anchor businesses and signed partnership agreements with companies such as Compaq, RCA, Verizon and Sprint, the average store had begun less to reflect RadioShack than a myriad of vendor partners. Reinstating the RadioShack name was an initiative begun in Tucson, but this newest unit reflects an even less cluttered, easier to navigate shopping experience while still clearly calling out partner names.

The previous prototype also used different colors to separate product categories, something that proved to be unnecessary and even confusing to shoppers, according to Provost. The Jacksonville stores use just three: one color for perimeter walls, one for the freestanding displays and another for category or directional signage, which is more abundant here to clearly mark each department for self-serve shopping. The colored backing on all displays can easily be replaced in a matter of hours to change the look of the store.

Gone, too, are the traditional glass cases that used to line most RadioShack stores. "There is nothing in this store that people can't get to," said Andy Zeinfeld, vp of real estate. "There is nothing under glass."

Potentially high-shrink items such as MP3 players and digital media are now on locked hang pegs that allow customers to touch the merchandise and read the packaging. Customer assistance is only necessary to unlock the product for purchase.

One of the biggest changes is a new drawer system for the retailer's core parts and accessories products. Approximately 12 to 16 linear feet of product is now condensed into a 6 by 4 foot unit with drawers on all four sides; each color-coded by product or use. In the Tucson test, this category was located in the rear and largely closed off from the rest of the store.

Eliminating the department has created clearer sightlines which, coupled with the new category signage, allow customers to clearly identify everything in the store from anywhere in the store, said Zeinfeld.

But more importantly, it has freed up space for management to expand the selection of digital products, including digital cameras and camcorders, PDAs and MP3 players. Additional notebook computers, DVD players and home theater systems from vendor partners Compaq and RCA have also been added, while each new or expanded category is flanked with accompanying accessories. It's part of RadioShack's strategy to increase sales of bigger ticket digital products while attaching the higher margin accessories to the transaction. Traditional landline phones have been relegated to the rear of the store and a new higher-end premium line of cable product has been introduced, a first for the chain, said Zeinfeld.

Although many of these merchandising initiatives were rolled out to all 7,000 RadioShack stores last summer, none have the complete package of new fixturing and merchandise that Jacksonville has, said Provost. As of mid-November, 18 units here have been opened or remodeled to prototype and two more will be completed after Jan. 1, 2003.

Each store is approximately 2,700 square feet; 25% larger than a classic RadioShack store, said Provost. The Tucson test stores averaged approximately 2,500 square feet and featured a check out and customer service area just inside the main entrance, an area that has been relocated to center store here, eliminating congestion in the entryway.

Using an entire market as a test compared to just a handful of stores has several benefits, according to Zeinfeld. The broad mix of demographics will allow the company to gauge how each responds to the new shopping environment, while a breadth of real estate options provide a valuable exercise to a retailer such as RadioShack. Explained Zeinfeld, "When you have a business like ours you need to have a design that can fit into a wide representation of real estate."