RadioShack’s Super Bowl Commercial The 80’s called…. They want their store back was a big hit, and may have been extremely prescient. But despite the headlines, the new store design promoted in the commercial is not counter to closing excess and underperforming stores— in fact it supports it, says JLL’s Michael Hirschfeld.
Shuttering storefronts is not revolutionary anymore, it’s evolutionary! In one fell swoop Radio Shack is changing how consumers perceive them, and simultaneously changing the customer experience in their existing storefronts. By closing underperforming stores or stores in saturated markets, RadioShack has an opportunity to redirect attention and focus on the other 4,000 locations that are still operating. They serve an important niche market and we expect them to be around for some time. They’re still a go-to source for connectivity – in the long run, it’s expected to be a net positive for the consumer and the company.
So what will happen to the vacant space? JLL’s Kimli Cross says, while some locations in secondary malls will be a little more challenging to backfill, most can be occupied fairly quickly with temporary tenant in the near term, and we expect the street locations to be readily absorbed.