Radio Shack 2010 Annual Report Download - page 5

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RADIOSHACK CORPORATION 3RADIOSHACK CORPORATION 3
run our business — through small,
conveniently located stores that offer a
compelling and highly tailored product
assortment, paired with the expert
service required to make optimal
product selections. These advantages
translate into clear benefits for our
customers, especially in the mobility
sector, where RadioShack is an
established authority.
We’ve built our mobility business
around a unique value proposition
that emphasizes customer choice.
In our U.S. company-operated stores,
we represent three of the nation’s
postpaid carriers — Sprint, AT&T and
T-Mobile — as well as several prepaid
providers. We stock an extensive
assortment of devices, backed by a
full complement of accessories from
national and private brands. We maintain
competitive prices, and we collaborate
with our vendors and partners to create
exclusive products and offers. We also
provide an exceptional level of customer
service that continues to earn top
marks from leading consumer research
organizations, due in part to our
unbiased sales approach, which drives
our associates to focus on helping
customers select the best solution for
their needs. Perhaps most important,
we offer our value proposition across
an unrivalled network, including 4,697
RadioShack stores and more than
1,267 wireless kiosks throughout
the United States and Mexico.
Our strength in the mobility category
is underscored by the steady growth
in wireless sales at our U.S. company-
operated stores, which rose 33 percent
in 2010, following an increase of
25 percent in 2009. We are committed
to continuing this growth by reinforcing
our emphasis on consumer choice.
In 2010, we significantly broadened
our distribution network by forging
an agreement to open Target Mobile
wireless kiosks within Target stores.
This partnership has already enabled
us to reach more consumers and to
strengthen our relationship with another
of the nation’s leading wireless carriers,
Verizon Wireless.
The Shack expands consumer perceptions
In the third quarter of 2009, we introduced The Shack, a contemporary marketing platform
that reflects our commitment to innovative technology while leveraging the equity in our
90-year-old brand — a brand that continues to be ranked among the most adaptable, enduring and
recognized names in the retail landscape. In the past year, we aggressively promoted The Shack
through a multifaceted marketing campaign spanning point-of-sale signage, radioshack.com,
collaborative opportunities with LIVESTRONG®
, and a growing range of other communications
channels, from traditional television and print, to digital, social, and mobile media. These efforts
are effectively communicating our promotional offers and sparking fresh conversations about our
business and brand with consumers, bloggers, associates and industry leaders.
24%
increase in brand consideration in 2010
RadioShack improved key metrics like price
perception, consideration and visitation on the
journey of contemporizing an iconic retail brand.
258 million
fourth-quarter impressions via Twitter
#UNeedANewPhone, a Twitter topic started by
RadioShack, yielded 65 million impressions in one day
and ranked among Twitter’s top campaigns of 2010.
The Shack hits a bullseye
with Target Mobile
One of the most compelling aspects of
The Shack’s customer value proposition
is convenience. In 2010, we expanded
the availability of our wireless solutions by
forging a partnership with retail powerhouse
Target to operate Target Mobile wireless
kiosks within select Target stores. We
ended the year with 850 Target Mobile
locations — all managed and staffed by
RadioShack — and we have plans to open
an additional 600 in 2011. Through Target
Mobile, we offer AT&T, T-Mobile, Sprint
and Verizon Wireless products and services
at competitive prices, and we deliver the
personal, knowledgeable service that has
become a RadioShack hallmark.