RadioShack Reinvents Itself as ‘The Shack’

RadioShack launched a marketing campaign to retool its image on Thursday in Times Square.
RadioShack Reinvents Itself as ‘The Shack’
A 17-foot laptop in Times Square is used as part of a RadioShack ad campaign. (The Epoch Times)
8/6/2009
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/radioshack2.JPG" alt="A 17-foot laptop in Times Square is used as part of a RadioShack ad campaign. (The Epoch Times)" title="A 17-foot laptop in Times Square is used as part of a RadioShack ad campaign. (The Epoch Times)" width="320" class="size-medium wp-image-1826895"/></a>
A 17-foot laptop in Times Square is used as part of a RadioShack ad campaign. (The Epoch Times)
NEW YORK—RadioShack launched a marketing campaign to retool its image on Thursday. The move includes adopting the nickname “The Shack.”

The senior electronics retailer’s marketing campaign in Times Square got launched simultaneously in San Francisco, at Justin Herman Plaza. Both sites are using massive 17-foot laptops with webcams that allow people in New York and San Francisco to communicate in real-time through Saturday.
 
Battling with other major electronics retailers like Best Buy and Wal-Mart, RadioShack adopting the nickname “The Shack” as a way to stay competitive. The campaign includes an emphasis on the store’s tech savvy staff and its wide range of electronics.

“People think about us for parts and pieces and batteries and wires, but we wanted to change the conversation with consumers,” said Lee Applbaum, chief marketing officer for RadioShack.

“And to do that,” he added, “We wanted to grab their attention, and wanted to force them to reappraise our products.”

RadioShack is attempting to contemporize its image as an out-of-date “radio” store by, among other things, expanding its mobile phone products to include T-Mobile.

“We announced a couple of weeks ago the addition of T-Mobile to our lineup of wireless carriers along with AT&T and Sprint,” said Applbaum.

RadioShack has also signed a marketing agreement with renowned cyclist Lance Armstrong, who next year will compete in the Tour de France as part of Team RadioShack.

At first the new name, “The Shack,” may confuse some with its similarity to the name of basketball player, Shaquille O'Neal. a.k.a “Shaq,” but Applbaum explained that “our customers have called us ‘The Shack’ for a long time now, so we didn’t make it up.”

According to SeekingAlpha.com RadioShack’s second quarter earnings were down 2.9 percent from last year, coming in at $965.7 million versus estimates of $978 million. But the company has exceeded estimates in nine of the last ten quarters.

Applbaum did not want to disclose the cost of the Times Square/Justin Herman Plaza event.

“We released our annual marketing expenditures at Q1 in which I believe we reported approximate marketing and advertisement expenses of $200 million, but we don’t want to share the exact costs associated with this event,” he said and concluded that, “Our financial reports were very strong and even in a tough macroeconomic environment. Great brands always have to re-evaluate themselves and contemporize themselves.”