Amazon in talks to buy RadioShack stores in bid to better compete with Apple

[Shawn Knight]

Amazon has reportedly entered into discussions to buy up some of RadioShack’s soon-to-be-abandoned brick-and-mortar retail stores.

Two people with knowledge of the matter told Bloomberg that Amazon is interested in using the stores as showcases for various products. The locations could also serve as potential pickup and drop-off centers for online shoppers.

RadioShack currently has more than 4,000 retail locations in the US. If Amazon was able to secure even a portion of those, it’d help the company level the playing field against rival Apple. The Cupertino-based company currently operates hundreds of retail stores, most of which are located in prime retail shopping districts.

The idea may seem far-fetched at first but the reality is that Amazon has several products it could display prominently in retail stores. Examples include, but not limited to, its Kindle line of e-readers and tablets, set-top boxes like the Fire TV and Fire TV Stick, the Fire Phone and even the new Echo personal assistant.

As for RadioShack, the New York Stock Exchange has suspended trading of the company’s stock after it failed to submit a plan on how it would realign itself with the exchange’s rules. As per NYSE rules, a company must have an average market value of at least $50 million for 30 straight days or have shareholder equity of that amount.

RadioShack has seen 90 percent of its value diminish over the past year, closing at just $0.24 per share yesterday.

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https://www.techspot.com/news/59624-amazon-talks-buy-radioshack-stores-bid-better-compete.html

 

[tipstir]

Amazon is just like the old Service Merchandise stores were. If Amazon was smart to build warehouse ordering locations. You would just drive-up place your order and wait for your item to come down the ramp and then drop into your trunk or slide open the door and have it drop into your MUV or SUV. It's that simple!

 

[Skidmarksdeluxe]

Why are they trying to compete with Apple? Don't they know they are merely an eCommerce site and not a tech manufacturer?

 

[Greg S]

Why are they trying to compete with Apple? Don't they know they are merely an eCommerce site and not a tech manufacturer?

Apple is a retail company more than a tech company. They can sell and give support, but they aren't very good at the tech aspects of their company. That's why amazon wants to compete. They are competing for retail market space.

 

[Frank Barnett]

They have hundreds of millions of FIREPHONES to get rid of lol. Its cheaper to buy RadioShack then throw them away

 

[p51d007]

I think that would be a BIG mistake. The overhead in employing people, taxes, expenses in the stores (tax, utilities, upkeep) would be a HUGE drain.

 

[Skidmarksdeluxe]

Apple is a retail company more than a tech company. They can sell and give support, but they aren't very good at the tech aspects of their company. That's why amazon wants to compete. They are competing for retail market space.

I think it's the other way around. Amazon is a retail company and they want to be taken seriously on tech side of things as well hence their FirePhone, Kindle eReaders among other offers. Apple is more of a tech company than a retail company.

 

[Axiarus]

Let Radio Shack die already. They should have been gone ten years ago.

 

[scottie]

Amazon has got they hand into everything. on the radioshack thing , radioshack was once a cool store. but once stores like walmart , bestbuy came to town , it was over for radioshack

 

[MannerMauler]

Well, with RadioShack calling bankruptcy and selling off most or half of their stores, this could be a jumpstart for them. It would pay off a small chunk off of their debt, even if its just a 1Bil deal, thats nearly all of their debt. Also, with a big company like Amazon buying them, that would help the stock price a bit, no?