What Radio Shack's Demise Means to Commercial Real Estate
It’s not a surprise that RadioShack Corp announced yesterday the closing of up to 1,100 underperforming stores, says Henry S Miller commercial retail division prez Michael Dee. It has been well publicized that Radio Shack has been struggling with their store sales for a while, Michael says. Given the large number of stores they plan to close, this will certainly have a negative impact on many landlords who have them as a tenant in the shopping centers. The good news: the vast majority of Radio Shacks are located in prime spaces in these shopping centers with typically excellent visibility, signage, access, parking, etc. Finding replacement tenants should be fairly easy, he says.
“I believe, as many do, the chain is struggling primarily because their stores are out-of-date and the company has not kept up with major competition,” he says. Their stores need a fresh new look to compete and attract customers. Like so many brick and mortar retailers, Radio Shack has been impacted by tough competition from online retailers like Amazon, Michael tells us. Shoppers will often check out the products in the store, price them, but then purchase them online. This appears to be a trend that is here to stay and unfortunately, out-dated retailers such as Radio Shack are being impacted every day.