Close your eyes and when you say or hear the words "The Shack", what comes to mind first? For me it is either Shaquille O’Neil or a greasy spoon restaurant at the beach–somewhere I would go wearing a bathing suit, no shirt, sandals and sun glasses. Well there is another meaning for The Shack. The Shack sells lots of stuff and the Shack just became the Shack very recently. Prior to being called the Shack, it was a company that was founded in 1921 close to 90 years ago as RadioShack.
I realize that over time things change and the word radio means less than it ever did. Yes technology in the past 90 years has exploded and come away from the traditional radio that my parents and their parents listened to music and ballgames on.
I won’t argue the name change. I don’t pretend to be a "name change guru" and perhaps they needed to change the name of the company. But The Shack? A 4 billion dollar company with over 35,000 employees is called The Shack!
Maybe it’s just me, but I don’t get it.
I must admit I don’t shop there and can’t even remember the last time I was in one of their stores. So I might be missing something. I believe there is a Shack in one of my towns but it isn’t in an area that I go to often, so I never go in.
- When you hear the word Shack what comes to mind?
- What do you think of the new name?
- Does it work for you?
- What other names could they have gone with?
- Did you shop at RadioShack?
- Will you shop at The Shack?
I look forward to reading your comments.
Stephenie Gordon says:
When i hear “The Shack”, i think of the book that is out that everyone is raving about.
I do not shop at Radio Shack and do not plan to go to The Shack; however, i know all of our AV gurus that help us say Radio Shack / The Shack, is the only place in town that they can find some of the weird parts that they need for our video systems, so i do know they have a niche with the AV techies.
Jeremy Bromberg says:
The Shack, or Radio Shack, has long been one of the most disappointing businesses I’ve ever witnessed. It has a perfectly cool model, and it’s something that should do very, very well, but anytime I’ve ever been in one I come away with just the lowest of low opinions regarding their employees. And now with the name change, I think I’ll add their management to the mix.
Fee Sepahi says:
Hi Merrill,
That is too funny, as I participated in one of the Focus Groups, about two years ago, that did the research for the re-branding effort!
At the time the questions were related to perception of Radio Shack and how they sell so much more than “radios” per say. In fact 99% of what they sell is not radio related, at all!
I do shop there on odd occasions when I need an odd off item, like the universal power adapter I bought for my laptop on a trip to CA recently, when I forgot my original at home. Being a Panasonic Tough Book laptop, not carried in most retail stores, and doubtful I would find one in a department store, called Radio Shack as it was right there, and they hooked me up with a universal adapter. It was easy! Or the rechargeable battery pack, they had on sale.
Not sure I care for the name change as The Shack represents so many other things for me, as you mentioned, other than an electronics retailer.
Merrill Dubrow says:
Fee,
That is amazing that you were at the Focus Groups. No question they needed to change the name but I question “The Shack” Do you recall any other names they discussed or words they were using to describe the shopping experience?
Thanks.
Merrill
Fee Sepahi says:
Given that it was a re-branding effort, the focus was mostly on that name, but if I recall correctly (not likely…:-) ) The words Electronic Shed, Radio Barn, Electronic Outlet, Computer Shack, Everything Shack, Everything PC, Everything Electronic, and some other obscure words were all polled. Given their business model, of carrying a whole lot of different components, the majority of their focus was attempting to get away from a name like “Radio Shack” that empathizes Radio, or PC…etc. They knew they couldn’t be a Best Buy or a Circuit City, Staples etc. in the short term, but given their niche market, as no one else does what they do, they wanted a name that could grow with them, generically!
I wish I could recall the facility I was in, on City Line Ave. That would probably help
It was one of my experimental, immersion, participation efforts, to find out more about the MR industry as a whole, early on! The $100 helped too
and I was fascinated!
anonymous says:
I understand what they’re trying to do but it doesn’t work for me. I also heard rumors that Pizza Hut will be going to “The Hut” since they’re trying to expand and become more known for their pastas etc. The Shack is silly and I can’t imagine where the marketers got the idea that the public would think this was a good idea–I wonder what kind of research they did to get here….
Paul Kirch says:
My brother-in-law works for Radio Shack Corporate in Ft. Worth, TX. I have had more than an earful about issues and updated. In reality, the company needed to reinvent itself. Though I don’t instantly buy into the Shack, I do think they’re in need of re-branding. If they create the right campaigns, I’m confident they’ll be successful with that piece. The hurdle comes from what Jeremy mentioned above. I am constantly shocked at how unimpressive their inventory is. They went from the battery club to trying to be the cell phone super store. What next? I would argue about the staff, as I have found many of the staff to be very technically savvy. The name change is probably a good move toward reinvention, but unless they change the inventory selection and layout of the stores inside, I think it will be viewed as a failure.
I do look to them for some creative marketing and advertising to back up this new concept. Without that, we may be seeing the beginning of the end.
Michael Braunberg says:
Not sure about the name (sounds to me like a honky-tonk blues bar) but will say that to efficiently work the counter in “Shack” stores you really have to be fascinated with electronics and so forth. For decades I loved that chain, and I would go to Radio Shack confident that the person at the counter would be an electronics expert who could be illuminating and helpful – but at some point it occurred to me I was going in and often the counter person knew less than I did. And so, like a lot of people, I started doing my own research (mostly on the internet) and either ordering on-line, or heading for one of the discount mega-stores, because if I have to do my own thinking, my remaining considerations are price and availability.
Christopher Dallion says:
About 20 years ago I used to shop at RadioShack at least once or twice a week. I was always in need of some wire, connectors or other hard to find electronic parts and they always either had them in stock or could get them quickly. Sadly this is no longer the case.
Over the years I have watched as they have struggled to compete with the “big” electronics stores while completely ignoring what used to be their core customer base – the electronics tinkerers. I know that there is no way to sustain such a niche business model however there was also no need to completely eliminate the one uniquely identifying feature of the company.
They do not have the purchasing power of Best Buy or Wal-Mart when it comes to selling consumer electronics so typically they are more expensive which is detrimental. Now calling themselves “The Shack” seems to be just a way to say “we’re cheaper” but not necessarily in the way I think they intend. I do agree they need to do something with their image/brand but I do not think it will help in the long run.
VPN says:
I believe this name change is just one more example of Corporate America trying to make in-roads with the younger crowd. The Shack sounds far more hip and cool than Radio Shack. I mean, who listens to the radio any more? Nowadays, it’s either the iPod, Sirius/ XM, or maybe something streaming off the Internet.
Beyond all of that, there’s a lot more than radios (and radio parts) in The Shack — and there has been for years. It was time for a new name.
ron crane says:
“The Shack:- Must be a burger or rib joint!
The Name- No less compelling than the misnomer Radio Shack. For a better name, I defer to the creatives and focus groups. I’m just an advertising lawyer!
Shopping there. If its a cable or splitter or whatever, they are the only ones around to go to. Maybe that’s how they stay in business.
In general, they have it, are no bargain, and the employees almost universally bring to mind my wife Paula’s comment, “It makes you wonder who is unemployed”
Marc Silverberg says:
This is just a guess, but…this seems like a clear brand management decision. And in the low risk world of a large, corporate retailer, probably the only decision that could be made.
You need to update your name to rid yourself of the outdated perception of a 1950’s “Radio” store, yet maintain the relationship with your customers and retain some of the decades of brand equity you’ve built. That’s the hard part that none of us know about. What did the research say about all the other names they considered and their customers perception of it. Unfortunately, naming research among them would probably have shown The Shack was a MUCH less risky choice.
The new name also meets one of the key ingredients of a long-term successful brand name – flexibility. And it also communicates many of the key benefits of the brand – low cost, wide variety of products. (probably not quality, but neither did Radio Shack.)
And most importantly, it saves money. To properly re-brand under a new name would cost millions of dollars. And going with The Shack, overcomes what has become one of the most difficult issues to deal with in naming, especially if there’s a limited budget: they owned the URL. Interestingly, they registered it in 1997.
It may not end up being the thing that helps them succeed, but in many ways, it seems to me like the obvious choice.
Alan says:
I don’t really like the name but their thinking was to appeal to a younger audience. I do shop there and in fact it is the only place I’ll ever go to for cell phone upgrades. I’m with Sprint and The Shack always has better deals than dealing direct with Sprint.
Karen Flannery says:
I am surprised that no one commented about hoping The Shack was on the beach so we could see Merrill in a bathing suit with no shirt on…
I am also surprised we have not heard from Bob Graham – former MR at “Radio Shack”.
Bob Graham says:
Oh, you guys are killin’ me…
As Karen mentioned, I used to be a Market Research Manager at RadioShack. My name’s Bob and I’m a Shacker, a term I use with pride.
When I was at RadioShack there was a viable and successful business model: 7,000 small stores (”90% of the country was 5 minutes away from a RadioShack”, we used to say), and the stores were known for providing advice on electronics as well as stocking small parts and electronics. “You’ve got questions, we’ve got answers” was our motto. RS was the third largest seller of Cellular Phones (this was before the Sprint and Verizon stores were so widespread) and lets not forget who introduced the personal computer to America. When I took geeks to the RadioShack museum, they would get all misty over the TRS-80.
RadioShack experimented with big box stores like Incredible Universe and Computer City, but I think the time wasn’t right.
As for “The Shack” the new marketers at RS are trying to build off the colloquial references that consumers use without giving up the brand equity that exists for the retailer. RS used to call itself “The Shack” in it’s advertising in the 70’s. I can still remember Charles Napier saying “The Shack’s got everything you need!” and thinking, “Hey there’s that guy from the Russ Meyer movies…”
If I were writing the campaign, I would have talked about the Company’s history and reputation for expertise. (Few people know that “RadioShack” is actually a nautical term and refers to the location on the ship where the electronics are.)
Last time I was in a RadioShack store; last week. Next time I’ll visit a RadioShack store; probably this weekend.
Sean Jordan says:
I have to admit that I don’t stop in RadioShack often because they are expensive and generally don’t have what I want. I also don’t like their salespeople; they’re either too pushy or too indifferent. They don’t seem to have a lot of interest in serving customers. This has been true at every store I’ve been in, so I know it’s not just a St. Louis thing.
Trying to “hip up the image” seems like a bad move to me. There’s a real opportunity right now to provide electronics and service to people who are older and not tech-savvy. RadioShack has a brand name that’s established and trusted, and they have expertise. Going after this market segment would be MUCH smarter than trying to go after the younger demographic (particularly since younger people tend to buy electronics online anyhow).
As was mentioned before, this is just as ill-advised of a move as rebranding Pizza Hut “The Hut.” I’m really puzzled about why either of these brands’ managers would want to throw away decades of good branding in favor of trying to appeal to the fickle youth markets.
Ed Sugar says:
I was just on ESPN.com and there were two or three banners ads for “G” (the product formerly known as Gatorade). Has this re-branding been a success? I know Q2 sales were below expectations and dragged overall sales volume for parent company Pepsi.
Still, will “G” catch on or has it “jumped the shark”?