Struggling consumer electronics speciality retailer,
) extended its partnership with Maker Media, which will expand
its Do it Yourself (DIY) product base. Notably, Maker Media is an
existing DIY partner of RadioShack.
The collaboration between the two will add to Maker Media's
existing line of DIY products within RSH's fold, which include
popular kits like 'Getting Started with Arduino'. The new DIY
products like kits, robotics and tools will be available in
RadioShack stores and online during the latter part of the
Maker Media serves a growing community of creative makers by
providing its products, services and by connecting them with its
partner. The company is the creator of MAKE Magazine,
Makezine.com and Maker Faire, which will also be available in
RadioShack stores in the coming months.
RadioShack started 'The Great Create' project to get the best
out of its most creative customers and display the creations
online or through its stores. In that effort, the company added
several partners like Popular Science, WIRED, Popular Mechanics
and has also added hundreds of new parts and tools in its stores.
Some of its most popular DIY kits are ColdHeat Soldering Tool,
Light-Emitting Diodes (LED), and Electroluminescent wire among
An adverse product-mix toward low-margin devices and a secular
downtrend on its legacy consumer electronics business has taken
its toll on RadioShack's results. Recently, RadioShack posted
highly disappointing first-quarter 2013 financial results, where
the top line and the bottom line failed to beat the Zacks
Consensus Estimate. This sombre condition is mainly attributed to
weakness in the company's postpaid wireless business.
We believe that the partnership extension is an attempt by the
company to diversify its product offering to compensate its loss
in the wireless and electronics business. Moreover, this
innovative product offering will also increase the company's
falling footfall as customers now prefer purchasing online rather
than visiting retail stores.
Other Stocks to Consider
RadioShack currently has a Zacks Rank #3 (Hold). Other stocks
to consider in the retail industry include
Costco Wholesale Corp.
). While Conns currently has a Zacks Rank #1 (Strong Buy), both
Costco and hhgregg carry a Zacks Rank #2 (Buy).
CONNS INC (CONN): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis
HHGREGG INC (HGG): Free Stock Analysis Report
RADIOSHACK CORP (RSH): Free Stock Analysis
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