Radio Shack 2009 Annual Report Download - page 12

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5
for a reasonable period of time, allowing us to transition the kiosks to a new format. In August 2009, we
transitioned these kiosks to multiple wireless carrier RadioShack-branded locations. They are now managed
and reported as extensions of existing RadioShack company-operated stores located in the same shopping
malls.
We are currently conducting a test rollout of kiosk locations in approximately 100 Target stores. This test will
be completed in 2010. At the conclusion of the test, a determination will be made with Target regarding
whether these operations will be expanded or closed.
OTHER
In addition to the reportable segments discussed above, we have other sales channels and support
operations described as follows:
Dealer Outlets: At December 31, 2009, we had a network of 1,308 RadioShack dealer outlets, including 34
located outside of North America. Our North American outlets provide name brand and private brand
products and services, typically to smaller communities. These independent dealers are often engaged in
other retail operations and augment their businesses with our products and service offerings. Our dealer
sales derived outside of the United States are not material.
RadioShack.com: Products and information are available through our commercial Web site
www.radioshack.com. Online customers can purchase, return or exchange various products available
through this Web site. Additionally, certain products ordered online may be picked up, exchanged or
returned at RadioShack stores.
RadioShack Service Centers: We maintain a service and support network to service the consumer
electronics and personal computer retail industry in the U.S. We are a vendor-authorized service provider
for many top tier manufacturers, such as Hewlett-Packard, LG Electronics, Motorola, Nokia and Sony,
among others. In addition, we perform repairs for third-party extended service plan providers. At December
31, 2009, we had six RadioShack service centers in the U.S. and one in Puerto Rico.
International Operations: As of December 31, 2009, there were 204 company-operated stores under the
RadioShack brand, 10 dealers, and one distribution center in Mexico. Prior to December 2008, these
operations were overseen by a joint venture in which we were a slightly less than 50% minority owner with
Grupo Gigante, S.A.B. de C.V. In December 2008, we acquired 100% ownership of this joint venture. All of
our 23 locations in Canada were closed by January 31, 2007.
Support Operations:
Our retail stores, along with our kiosks and dealer outlets, are supported by an established infrastructure.
Below are the major components of this support structure.
Distribution Centers - At December 31, 2009, we had four U.S. distribution centers shipping
approximately 875,000 cartons each month, on average, to our U.S. retail stores and dealer outlets.
One of these distribution centers also serves as a fulfillment center for our online customers.
Additionally, we have a distribution center that ships fixtures to our U.S. company-operated stores.
During the first half of 2008, we closed our distribution center in Columbus, Ohio.
RadioShack Technology Services (“RSTS”) - Our management information system architecture is
composed of a distributed, online network of computers that links all stores, customer channels,
delivery locations, service centers, credit providers, distribution facilities and our home office into a
fully integrated system. Each store has its own server to support the point-of-sale (“POS”) system.
The majority of our U.S. company-operated stores communicate through a broadband network, which
provides efficient access to customer support data. This design also allows store management to
track daily sales and inventory at the product or sales associate level. RSTS provides the majority of
our programming and systems analysis needs.
RadioShack Global Sourcing (“RSGS”) - RSGS serves our wide-ranging international import/export,
sourcing, evaluation, logistics and quality control needs. RSGS’s activities support our name brand and
private brand businesses.