RadioShack is testing a new concept in the Dallas area focusing on wireless devices and services. PointMobl stocks each mobile category - from compact laptops and MP3 players to smart phones and GPS systems - in more depth than a RadioShack, but makes no mention of its affiliation to the parent company.
"It's not a RadioShack
store or even an extension of a RadioShack store,"
Phyllis Proffer, vice president of investor relations at RadioShack, told The Wall
Street Journal. "We brought together a team of dedicated mobile
industry veterans and they defined and developed the concept based upon the
trends we're seeing in Europe and other parts of the world."
"Most importantly, it really addresses the needs of the customers as it pertains to wireless mobile devices, services and accessories," she said. "People want choice."
While the same size as a typical RadioShack, its white fixtures, clean glass and sleek design further differentiates PointMobl from its parent's chain. PointMobl's wireless carriers are the same as RadioShack's: T-Mobile, AT&T and Sprint. PointMobl also features "guides" that help set up and troubleshoot new mobile devices.
One PointMobl employee speaking to the Journal described the store as "98 percent playground," with wireless phones, lightweight laptops, GPS systems, digital cameras and iPods set up for customers to try out and compare.
According to The Dallas Morning News, PointMobl could be a way to compete with stores from AT&T and other carriers as well as Best Buy's expansion into the mobile category. More than one-third of RadioShack's business is in wireless, but the company has been losing market share.
Michael Pachter, analyst at Wedbush Morgan Securities, said that while it's a challenging time to test any new initiative, PointMobl could be a higher-margin concept.
"If it works, selling smart phones and all things portable is a higher transaction than RadioShack's average," said Mr. Pachter.
Discussion Question: What do you think of PointMobl and the potential for stores focusing on mobile devices and services? Do you think it was smart for RadioShack to hide its affiliation with PointMobl? Do you expect that the store personnel will be up for the challenges of serving these demanding customers?