A rvin Goldberg rvin Goldberg rvin Goldberg rvin Goldberg A rvin Goldberg rvin Goldberg rvin Goldberg rvin Goldberg A A A A A A Senior VP, Strategic Business Units Senior VP, Strategic Business Units
Merchandising Merchandising Merchandise Model Strengthening the Ways in Which RadioShack Does Strengthening the Ways in Which RadioShack Does Business Business The CE Marketplace and RadioShack’s Approach The CE Marketplace and RadioShack’s Approach Long-Term Sales Drivers Long-Term Sales Drivers
Merchandising Model Merchandising Model • Greater Customer Focus • Compete Selectively • Compete Selectively • Requires Dynamic Skills • Requires Dynamic Skills
Strengthening Merchandising Strengthening Merchandising Better Ways of Doing Business Better Ways of Doing Business Pre-2002 Today Pre-2002 Today • Merchandise Planning • Merchandise Planning • Merchandise Planning • Merchandise Planning Driven Yearly Driven Seasonally Driven Yearly Driven Seasonally – Spring – Spring – Fall – Fall • Catalog Focused • Catalog Focused • Customer Focused • Customer Focused Merchandising Merchandising Merchandising Merchandising
Strengthening Merchandising Strengthening Merchandising Better Ways of Doing Business Better Ways of Doing Business Pre-2002 Today Pre-2002 Today • Merchandise Planning • Merchandise Planning • Merchandise Planning • Merchandise Planning Driven Yearly Driven Seasonally Driven Yearly Driven Seasonally – Spring – Spring – Fall – Fall • Catalog Focused • Catalog Focused • Customer Focused • Customer Focused Merchandising Merchandising Merchandising Merchandising • Static Catalog • Static Catalog • Fluid Catalog • Fluid Catalog • Static Pricing • Static Pricing • Fluid Pricing • Fluid Pricing • Formula Price • Formula Price • Market Pricing • Market Pricing
Strengthening Merchandising Strengthening Merchandising Better Ways of Doing Business Better Ways of Doing Business Pre-2002 Today Pre-2002 Today • Formula Buying (Red Book) • Dynamic Buying • Formula Buying (Red Book) • Dynamic Buying – Buying to ROS – Buying to ROS – Driving Trends – Driving Trends • Administering SKUs • Administering SKUs • Category Management • Category Management and Orders and Orders • Focus on History • Focus on Consumer • Focus on History • Focus on Consumer Demands, Brand Positioning Demands, Brand Positioning ex: ex: – Digital End Products – Digital End Products – Accessories Supporting Them – Accessories Supporting Them – Products Consumers Give Us – Products Consumers Give Us Credit For Credit For
The Consumer Electronics Marketplace The Consumer Electronics Marketplace and RadioShack’s Approach and RadioShack’s Approach Competitive Set Recognizes the Value of Our Core Accessory and Competitive Set Recognizes the Value of Our Core Accessory and Battery Business Battery Business Solution: Organizational Focus, Innovation, Depth of Stock, and Solution: Organizational Focus, Innovation, Depth of Stock, and Advertising Advertising
The Consumer Electronics Marketplace The Consumer Electronics Marketplace and RadioShack’s Approach and RadioShack’s Approach Competitive Set Recognizes the Value of Our Core Accessory and Competitive Set Recognizes the Value of Our Core Accessory and Battery Business Battery Business Solution: Organizational Focus, Innovation, Depth of Stock, and Solution: Organizational Focus, Innovation, Depth of Stock, and Advertising Advertising Innovation and Speed to Market in Our Core Area Innovation and Speed to Market in Our Core Area Solution: 1st or 2nd to Market in Businesses Identified with Solution: 1st or 2nd to Market in Businesses Identified with RadioShack RadioShack
Zip Zaps Zip Zaps One Million Sold to Date One Million Sold to Date • Micro RC trend spotted in January ‘02 • Micro RC trend spotted in January ‘02 • Research conducted to shape entire program • Research conducted to shape entire program • Zip Zaps brand identity developed • Zip Zaps brand identity developed • Key licenses secured • Key licenses secured • Complete 23 SKU assortment developed • Complete 23 SKU assortment developed • Shaq product spokesperson • Shaq product spokesperson
Improving Our People Improving Our People Raising Level of Skills Bringing in New Talent Raising Level of Skills Bringing in New Talent Measuring What Counts Developing Future Talent Measuring What Counts Developing Future Talent
2003 Outlook 2003 Outlook
2003 Sales Drivers 2003 Sales Drivers
Industry Unit Sales of Selected Consumer Industry Unit Sales of Selected Consumer Electronics – 2003 through 2005 Electronics – 2003 through 2005 YOY Increase YOY Increase Category ’03E ’04E ’05E Category ’03E ’04E ’05E Digital Cameras 22% 17% 12% Digital Cameras 22% 17% 12% DVD Players 11% 8% 10% DVD Players 11% 8% 10% Portable Computing (PDA’s) 12% 45% 30% Portable Computing (PDA’s) 12% 45% 30% Wireless Accessories 8% 10% 10% Wireless Accessories 8% 10% 10% Sources: CEA; eBrain Market Research; eTForecasts, Gartner DataQuest Sources: CEA; eBrain Market Research; eTForecasts, Gartner DataQuest
Summary: Merchandising Priorities Summary: Merchandising Priorities 1. Dominate Routine Electronic Needs (e.g. specialty 1. Dominate Routine Electronic Needs (e.g. specialty batteries, accessories, inkjet) batteries, accessories, inkjet) 2. Be Famous for Families’ Unique Wants or Small 2. Be Famous for Families’ Unique Wants or Small Leading Edge Items Leading Edge Items 3. Manage Business Through Innovation, Sound 3. Manage Business Through Innovation, Sound Processes and Great People Processes and Great People
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