Radio Shack 2004 Annual Report Download - page 16

In 2005, RadioShack will continue delivering timely solutions through our two main
business channels: core channels, which include our company and dealer stores and
our dot.com presence, and close-to-core channels such as overseas third-party retailers,
expanded store counts in Mexico and, as mentioned previously, retail services.
Earnings growth is expected to decelerate from the prior year due primarily to a slowdown
in our wireless business in our core stores. Factors related to pricing pressure and the
product technology cycle are mainly responsible for the wireless slowdown.
From a channel perspective, most of our 2005 earnings are anticipated to come
from our core stores. We expect additional, though smaller, earnings contributions
from our dealer store network, Sprint-branded kiosks, wireless repair center, and
dot.com channels.
From a merchandise perspective, we anticipate respectable numbers out of most
categories that did well in 2004. We will also continue to rationalize product lines,
starting with weaker performing categories. We will devote more in-store space to
the categories our customers expect us to be in. We’ll also examine, on a category-
by-category basis, whether consumers value brands. Where they do, we’ll have
compelling brand selections; where they don’t and prefer to buy solely on price,
we will be competitive, too.
the bottom line.
What everyone wants is...
14 2004 Annu al R epor t