Service Merchandise Closing Doors

The Associated Press ^ | Friday, January 4, 2002; 3:38 PM | By John Gerome

[Lael]

Next on my wish list is Radio Shack - everything they sell is crap, and they need your name and address to sell you a AAA battery. Bigtime! What a crappy and horrible place. The employees are right off the street and are totally clueless about the overpriced goods that they carry.

Never confuse Radio Shack with Radio Shack.Com. Only three stores...Denver, Phoenix, Atlanta. Can't go to work for 'em UNLESS...You're a card carring Radio Amateur, or were raised on computers instead of Tinker Toys.

[SamAdams76]

I'm not going to argue with you, you seem like you know your stuff. However it seems that everybody I talk to buys from Amazon.com and likes using them. They have developed an enviable brand name and they are obviously selling millions of dollars of product every day. I can't imagine how they could be still losing money. If even Amazon can't turn a profit, that does not bode well for any dot.com, period.

Maybe Wal-Mart will snap them up.

[Timesink]

I can't imagine how they could be still losing money.

You were right when you said that they probably could have become profitable a couple years ago if they hadn't kept on hyperexpanding, and thus hyperspending. But they did, and a lot of the areas they expanded into haven't become moneymakers for them. And as Ken has noted, now that the economy's down and the constant expansion of the number of Internet users has come to a dead halt, even their core businesses of books and CDs are only about breaking even at best. And now it's just finally gotten to the point where most of their amassed cash pile has been spent, and they're going to have to start playing the game for real: Make money or die.

[SamAdams76]

Amazon should have stuck to their core business of books and music. They do that well and the on-line reviews and sampling of tracks have become invaluable tools.

Like I said earlier, they should never have overextended themselves like they did. I'd never consider buying a garden rake from Amazon, or even a DVD player. You can find much better deals for that stuff at Home Depot and Circuit City and you don't even have to pay shipping.

[Caipirabob]

Gear up for a spending spree! When SM shut down their toy department in 2000, we bought tons of toys, about $700 worth which would have cost us near $2000 if we had paid full price we still haven't given all of it to the kids for Christmas yet, we're covered until 2003. Now we're assessing what they have that we need next at 60% off. Go out and SPEND!!!

[toddst]

If you will look at some electronics items - DVD players, for example - you will see that Amazon has an arrangement with the manufacturers of some lines, Sony is one. They point out that some models are in stock at Circuit City and Best Buy and may be purchased and picked up at those locations.

How does Amazon make money in those deals? I have no idea but clearly there is some arrangement that benefits Amazon. Amazon Mgmt is pretty sharp, IMHO. I doubt they are going away.

[Fresh Wind]

I bought one item from Amazon, and it took 'em damn near a month to deliver an item their website said was in stock. I hope this isn't typical of their service.

[Thinkin' Gal]

A couple of years ago I had to go to Radio Shack for some cables. The punk behind the counter wasn't too offensive, until I refused to give him my address. My response was simply, "This is a cash sale." His face went sour, and then he said he needed the address for [insert stupid reason]. I repeated, "This is a cash sale." By now he was on the verge of a temper tantrum as he explained how it would make him look bad and that his boss would be sore at him, implying of course that it was all my fault for not cooporating. I was tempted to make a witty reply (I could think of several), but this clown may have gone postal. I told him I was not interested, and he made the sale in quite a huff.

Apparantly he never learned to accept 'no' for an answer. Maybe it was the first time in his life where he didn't get his way. If he's any indication of the future of America, there isn't one.

[imperator2]

Another victim of Wall Mart success.

[stainlessbanner]

I bought some jewelry there two years ago - best service I have ever had. Unfortunately, it was the only good example in over 10 years of experience with the store.

Over the last few years, they really took the "Service" out of Service Merchandise. Best Buy, Sears, and other "home-life" chains created a better bus. model.
Svc Mer. was left in the dark ages!

[JHL]

You're all wrong. The next to go belly up will be "Toys R Chinese". And I say good riddance.