New RadioShack CEO Touts Private Label
On the first conference call with analysts after being named CEO, Joseph Magnacca took the opportunity to call out the company’s private label program and his desire to reinvigorate development in it.
“I think that internally, we became very focused on that wireless business and lost maybe some of the heritage that we had inside of our business, which was focusing on the do-it-yourself business,” Magnacca told analysts, according to transcripts from Seeking Alpha. “And the one that I think resonates the most is the focus on private brand in the development side of our overall business. And those are the things that we’re looking at today and saying, ‘How do we return to some of those things … in today’s environment?’”
Magnacca, who was hired by RadioShack after being promoted to executive vice president at Walgreens, talked about RadioShack’s history in private label to express his vision of the future. He said that the leadership team had presented a 100-day plan to the board of directors on where the company would go.
“You will see (RadioShack historically) was a very, very different business, and probably 60 percent to 70 percent of what was in that catalog was own brand, including Realistic and certainly the RadioShack brand and Tandy,” he said, according to the Seeking Alpha transcripts. “So I would say that we moved from being a leader relative to technology development to a follower.”
Chief Financial Officer Dorvin Lively seconded the idea, saying there were opportunities for private label in prepaid mobile and the company’s signature platform, including categories such as wireless accessories, headphones and portable speakers.
“Across our business, we will continue to grow our private brand product offerings, which provide the customer more choice in a high quality at a lower price point,” Lively told analysts. “This will be most visible in our signature and CE platforms, and then to a lesser extent in mobility.”