The end of a retail icon is always big news in commercial real estate, and it’s particularly relevant when the brand in question is closing more than 4,000 stores around the country. The retailer, of course, is RadioShack. There are a range of factors, as discussed in this Retail Rap, that have contributed to RadioShack’s downfall — brand identity and points of differentiation have eroded over the years, and in a competitive category where more and more electronics are being sold online (more electronics are sold on the web as a percentage of overall sales than in any other retail segment) — but one of the most interesting storylines in the wake of the company’s recent bankruptcy announcement is what happens next with those 4,000+ locations.
As for what types of retailers will be looking closely at these former RadioShack locations, I think we’ll see a mix of predominantly service retailers and fast casual dining concepts. Mobile phone companies, electronic game stores, and restaurant chains are all good candidates to fill those spots. Retailers that rely heavily on a high volume of everyday foot traffic will take a long look at RadioShack locations.
In the weeks and months ahead (now that you’ve read my take in this Retail Rap), as you head to work, go shopping, or go out to grab and bite to eat, take a moment to notice the RadioShack(s) in your area. I’d be interested to hear from you and find out what retail brands you see moving in to those spots. Do you see the same optimistic outlook for RadioShack sites?