RadioShack’s earnings fell 24% in the third quarter, mostly attributable to declines in television-signal converter boxes and laptops.
But the Fort Worth, Texas, electronics retailer also recorded expenses from the rollout of a nickname, “The Shack,” in August.
“The launch of the ‘The Shack’ brand platform was a success, and we will continue to refine and invest in this positioning,” said Shack CEO Julian Day.
The Shack, however, is only a nickname.
“When a brand becomes a friend, it often gets a nickname – take FedEx or Coke, for example. Our customers, associates and even the investor community have long referred to RadioShack as ‘The Shack,’ so we decided to embrace that fact and share it with the world,” ,” said Lee Applbaum, RadioShack’s Chief Marketing Officer in an August press release.
“This … is not about changing our name. Rather, we’re contemporizing the way we want people to think about our brand. The Shack speaks to consumers in a fresh, new voice and distinctive creative look that reinforces RadioShack’s authority in innovative products, leading brands and knowledgeable, helpful associates.”
By using only half its name, RadioShack hopes to distance itself from cheap radio parts from bygone eras. But apparently it’s stuck with shacks.
