[samsonyuen]

No more Radio Shack in Canada. They will now be known as The Source by Circuit City. Could we be seeing Circuit City big box stores in the future to break up the Best Buy/Future fake duopoly? I hope so.
______________
Radio Shack in Canada becomes The Source
U.S. ruling forces InterTAN to rebrand 900 stores

Rita Tricher
The Canadian Press

Wednesday, April 27, 2005

TORONTO - More than 900 Radio Shack stores across Canada will be rebranded as The Source by Circuit City by the end of June, the top executive of InterTAN Canada Inc. confirmed last night.

The rollout, which starts today at the company's Eaton Centre store in downtown Toronto, comes on the heels of a U.S. court decision that prohibits InterTAN's new U.S. parent company from using the Radio Shack name in Canada.

For many years, InterTAN operated as a private Canadian company with the rights to the Radio Shack name in this country, but it agreed in March 2004 to be acquired by Circuit City Stores, Inc. of Richmond, Virginia.

"We are going to be the headquarters in Canada for everything that's personal, portable and mobile," InterTAN chief executive Brian Levy said.

He added that InterTAN plans to open 20 to 30 new The Source stores across Canada by the end of 2005 and offer a broader assortment of products in its stores.

"Not only are we changing the name of the stores, but we're going to keep everything that customers have enjoyed about shopping at Radio Shack over these many years, and we're going to make significant enhancements to that shopping experience."

Those changes include a new red and yellow logo, complete with diagrammatic sound waves and a revamped format "that will be easier to navigate."

The Source stores will also offer a ramped-up assortment of digital cameras, MP3 players, flat panel televisions and health products such as blood-pressure monitors and air purifiers as the company broadens its purchasing power through the deep pockets of its American parent.

It also promises to offer more than 300 "exclusive" gadgets via its Asian sourcing company, including clocks, stop watches and talking picture frames.

Circuit City is the No. 2 chain of consumer electronics stores in the United States, after industry leader Best Buy.

Radio Shack Corp. spun off the Canadian operations in 1987. But under a licensing deal, InterTAN was permitted to sell Radio Shack products and use the brand name.

Radio Shack of Fort Worth, Texas, filed a lawsuit last May in the 352nd Judicial District Court in Tarrant County, Texas, claiming it had the right to end the licensing agreement. The lawsuit came just as Circuit City was wrapping up the InterTAN acquisition.

Circuit City had previously said it would appeal the March ruling.

"Subsequent to (the merger), the people at Radio Shack in the United States contested the licence agreement that was in place, and certainly we maintain (it) was very fairly in place," Mr. Levy said last night.

"Radio Shack wanted us not to use their name, and we're simply obliging the court and ... we're using this as an opportunity to tell customers a more complete story that we think describes what's available to them in our stores."

The name change will also save InterTAN about $5 million in annual royalties paid to Radio Shack for licensed use of the brand, said Alan McCollough, chairman and chief executive of Circuit City.

The Canadian subsidiary will spend about $50 million on advertising this year to get Canadian consumers acclimated to the new brand.

There are no immediate plans to expand The Source stores into the United States.

Earlier this month, Circuit City reported a net income of $61.7 million U.S., or 31 cents per share, for fiscal 2005 on more than $10 billion in annual sales. That compared with a loss of $89.3 million, or 43 cents per share, in fiscal 2004.

For fiscal 2006, Circuit City expects sales to increase between three per cent and six per cent, and domestic same-store sales to grow in the low single digits -- despite the Texas court ruling.

 

[Mr Man]

Radio Shack always had a negative connotation.

 

[vid]

Now that you think about it, yeah..

I bought my Norton Anti Virus from some gay guy at a Radoi Shack here.. Moments later, the manager yelled at him for some reason, and he cried.. ah, fond memories :|

 

[algonquin]

I hate Radio Shack.

For example... I went to get an audio extension cable, they wanted 15 bucks for it. I went to Canadian Tire.... 5 bucks and they had a better selection.

It's like Shoppers Drug Mart... why they hell would I waste my money there when I can get everything I need at a grocery store for alot cheaper? Why doesn't the law of survival of the fittest apply to these crappy stores?

 

[vid]

I hate Radio Shack.

For example... I went to get an audio extension cable, they wanted 15 bucks for it. I went to Canadian Tire.... 5 bucks and they had a better selection.

It's like Shoppers Drug Mart... why they hell would I waste my money there when I can get everything I need at a grocery store for alot cheaper? Why doesn't the law of survival of the fittest apply to these crappy stores?

because they're American?

 

[Mr Man]

Are you kidding me? Wal-Mart is pratically invincible. Hate it or not but they did force retailers all around North America to smarten up or be blown to shits.

I think Costco and Canadian Tire were able to adapt early and have little to fear from Wal-Mart as a result. Circut City on the other hand is slowly heading towards bankrupcy. Best Buy is killing it.

Survivial of the fittest has and always will be in play.

 

[samsonyuen]

Well, it looks like RadioShack will be in Canada once again. Today, they announced their plans to become the largest small-store electronic retailer again. So why did RadioShack divest its interests in InterTAN in the first place? What it does mean is more competition and nicer looking store, which is great.
______________
RadioShack zeroes in on The Source
By MARINA STRAUSS
Friday, April 29, 2005 Updated at 8:35 AM EST
RETAILING REPORTER

U.S.-based RadioShack Corp., which has won a court battle over the use of its name in Canada, is poised to begin an aggressive launch of its own stores under its namesake.

The rollout will make it even more difficult for Circuit City Stores Inc. of Richmond, Va., to raise awareness of its new banner --The Source by Circuit City -- after a ruling that its Canadian RadioShack outlets will have to be renamed, observers said.

"It's a challenge," said Wendy Evans of retailing consultancy Evans & Co. "RadioShack is such a well-known name. For the average person, there's going to be confusion, for sure. They'll wonder who is The Source by Circuit City."

Canadian RadioShack stores are currently run under a licensing agreement by InterTan Canada Ltd. But InterTan was acquired last year by Circuit City, setting off the legal fight over the RadioShack name.

Circuit City is the second-largest U.S. electronics chain and RadioShack didn't want its name -- and products -- to help bolster a key competitor.

A Texas court ruled recently that the Canadian stores will have to drop the name RadioShack by the end of June.

"We are committed to ensuring we maintain a strong brand presence in Canada as soon as possible," Mike Kowal, an executive vice-president at RadioShack, said as he arrived in Toronto yesterday on a trip to look for locations across the country.

"Our goal is to be in some key cities in a key number of locations by this Christmas . . . Our goal is to be aggressive this year, and to have stores and re-establish our presence within the country."

He said RadioShack is determined to remain the dominant small-store electronics specialty chain in Canada. The new stores will have an updated and brighter look, he said.

Observers said it will not be easy for Circuit City's renamed RadioShack stores to attract customers to the new banner. And with RadioShack entering the country with the name, the job will be even greater.

Circuit City, through InterTan, now has more than 900 RadioShack stores, both corporate owned and franchises, in Canada.

Ms. Evans said a huge marketing campaign will be needed to explain the change to consumers.

And as RadioShack and Circuit City battle it out, big-box retailing titan Best Buy Canada, which also owns Future Shop, continues to expand across the country -- providing further competition, she said.

 

[*Jarrod]

oh ****, now i'm really confused...

 

[samsonyuen]

RadioShack, an American company opens stores in Canada, calls it RadioShack. RadioShack (US) sells international stores, including RadioShack's Canadian stores, now named InterTAN. InterTAN licenses the RadioShack name, and sells RadioShack products. InterTAN get purchased by Circuit City, an American competitor to RadioShack. RadioShack in the US objects to their namesake stores in Canada (which they don't own anymore, but still licenses their name and products), and forces Circuit City to get them to change RadioShack-named stores in Canada to The Source. RadioShack in the US announce their intent to open stores in Canada, due to the loyalty of its customer base. Thereby, deciding to compete against their former subsidiary/current competitor (Circuit City).

 

[neilio]

its gonna be so wierd going to "The Source" for electronics and stuff...i mean ive grown up all my life going to radio shack..offcourse ill get use to it like anything els but at first it will be kinda odd

 

[samsonyuen]

Yeah, and I'm not sure Canada can support 900 or more small-electronic stores, as RadioShack wants to be the premier store again in Canada. How many small-electronic stores do we need in a mall?

 

[neilio]

ive actually stopped going to radio shack lately ive found much better electronics shops that have ALLOT more of what i need.....used electronics, LED's, Resistors/transistors and other electronic components, radio shack seems to be good for selling New stuff that breaks sooner then the "old" stuff i can buy for 1/5 the price at other stores

 

[samsonyuen]

RadioShack forms Canadian subsidiary as part of North American expansion
Thu May 5,10:02 PM ET
FORT WORTH, Texas (CP) - RadioShack Corp. said Thursday it plans to re-enter the Canadian market with 20 to 30 company-owned stores by the end of the year, with most of them in the Toronto area.

The Dallas-area company has not been directly involved in the Canadian market since the mid-1980s but the RadioShack brand name was licensed, until recently, to a private company with about 900 stores across the country.

However, that arrangement ended after Canadian-based InterTAN Canada Ltd. was purchased last year by Circuit City of Richmond, Va., and RadioShack Corp. moved to regain the Canadian rights to its brand name.

In March, RadioShack Corp. won a court ruling that prohibits InterTAN and Circuit City from using the RadioShack brand name after June. Their stores are being rebranded The Source by Circuit City.

RadioShack Corp. (NYSE:RSH - news), which had been expected to make its own push into the Canadian market, said Thursday that it will continue to provide consumer electronics through its new stores.

"For more than 35 years, RadioShack has been a household name to Canadians, and that's why we fought so hard to protect our brand. The loyalty and trust our customers place in us has made our name one of the most powerful brands in North America," said David Edmondson, RadioShack's president and CEO-elect.

In addition to the company-owned stores, RadioShack is extending offers to existing independent Canadian RadioShack dealers who wish to continue operating under the company's brand name and infrastructure after June, Edmondson said.

His company is also planning to bring its Best Shop store format into Canada, which is in place at 500 stores in the United States.

The new format has with brighter colours, enhanced lighting, wider isles, interactive displays, a more centralized check out process and, in most

cases, more useable square footage per store, Edmondson said in a statement.

 

[samsonyuen]

Maybe Radio Shack won't be entering Canada anytime soon...
________________________________
May 7, 2005. 01:00 AM

The future of the Radio Shack name in Canada and a third of the retailers that bear it is up in the air as two U.S. consumer electronics giants battle it out for a stake in the Canadian marketplace.
InterTan Inc. of Barrie shot the latest volley yesterday saying it has the exclusive right to the Radio Shack name in Canada until 2009 even though a Texas court ruled in March that InterTan can no longer use it.
The court gave InterTan until June 30 to stop using the Radio Shack name on its more than 900 stores across Canada. InterTan responded by announcing the stores would change their name to The Source by Circuit City. No sooner had InterTan abandoned the name than its former parent company, RadioShack Corp., of Fort Worth, Tex., announced it planned to open its own chain of Canadian stores under the Radio Shack banner. Radio Shack is two words on Canadian while the U.S. company and its stores spell it one word. RadioShack Corp. said it would open the first 20 to 30 corporate owned stores before the end of this year, most in the Greater Toronto Area.
Yesterday, InterTan said Radio-Shack U.S. can't do that. Even though InterTan can't use the RadioShack name after June 30, InterTan said neither can any one else until its licensing agreement with RadioShack Corp. expires in 2009.
RadioShack in the United States disagrees.
InterTan said it plans to defend its right in court, though a specific strategy has yet to be worked out.
In the meantime, RadioShack Corp. has begun courting the 360 independent retailers that use the RadioShack name under contract with InterTan hoping to persuade them to switch allegiances so they can keep the well-known name over the stores. The stores, mainly in smaller markets, would be in addition to the corporate owned stores in the larger centres, RadioShack Corp. said.
InterTan is fighting back by vowing to double its advertising budget this year to raise awareness of the Circuit City name. It opened the first of the renamed stores in downtown Toronto's Eaton Centre two weeks ago to showcase the new design and format. The stores will carry more digital products and benefit from Circuit City's greater buying power, Levy noted.
The cross-border dispute began after Circuit City Corp., America's second largest consumer electronics chain, gained a foothold in Canada last year through the purchase of InterTan. InterTan used to be owned by RadioShack Corp., America's third-largest chain, and still had a licensing agreement with the company giving it the right to use the name in Canada.
_________________________________
RadioShack, Circuit City press fight over name

From Staff and Wire Reports
May 7, 2005

Circuit City Stores Inc. escalated its battle with RadioShack Corp. over the use of the RadioShack name on more than 900 stores in Canada.


More skirmishes are expected between the two retailers as they fight over the Canadian market.

RadioShack has claimed victory in the legal battle, and said Thursday it plans to open up to 30 stores in Canada by the end of the year. It would be the first time the retailer has owned stores in that country since 1987, when it spun off its Canadian operations.

A year ago, Richmond-based Circuit City purchased InterTAN Inc., a retailer that held rights to the RadioShack name in Canada.

Circuit City, the second-largest U.S. electronics chain, and No. 3 RadioShack have been fighting in courts for a year over the name use. In March, RadioShack won a court ruling in a Texas court barring Circuit City from using its brand name in Canada after the end of June.

Circuit City fired back yesterday, saying the Texas judge had yet to issue a final ruling and that the fight was not over. "While we are disappointed by RadioShack's hostility and their legal maneuvers, we are focusing our efforts on offering Canadian consumers and our dealers an even broader range of products and more attractive value," Circuit City said in its statement yesterday.

Last week, Circuit City said it would comply with the ruling and change the stores' names to The Source by Circuit City while appealing its rights to the RadioShack brand through 2009.

Shares of Circuit City rose 2 cents to close at $15.77 on the New York Stock Exchange. Shares of RadioShack were up 1 cent to $25.23.

The next skirmish between the two retailers is expected Monday, when RadioShack makes a pitch to 330 independent businesses that operate RadioShack stores in Canada through an agreement with InterTan.

It has scheduled a conference call to offer dealer agreements and its view that their agreements with InterTan aren't valid after June 30.

"We've had a lot of inquiries from dealers over the last week who are particularly perturbed at facing the prospect of rebranding their store," said Mike Kowal, RadioShack's chief supply chain officer. "I think we are going to get almost all of them."

RadioShack also said it plans to have as many as 30 company-owned stores in Canada by the end of this year.

"For more than 35 years, RadioShack has been a household name to Canadians, and that's why we fought so hard to protect our brand," said David Edmondson, RadioShack's president.

InterTan, which has more than 1,000 stores including the 330 dealer agreements, last year accounted for $32.4 million of Circuit City's $63.4 million profit from continuing operations before taxes. RadioShack has said fees it receives from InterTan are not material to its results.

Circuit City believes its contracts with dealers on use of the RadioShack name remain in effect and has met with dealers to discuss the brand change, spokesman Bill Cimino said. He said the company will appeal the partial ruling by a Texas court once the judge issues a final ruling.

"We've been pleased with the initial response we've gotten from dealers," Cimino said. That includes a number who have signed new agreements to operate as The Source stores. He declined to give details.

Circuit City has begun changing the name on the 520 Canadian stores it owns to The Source. It plans to spend an additional $17.5 million on advertising and promoting the change, Cimino said.

Best Buy Co. Inc., the No. 1 chain of consumer electronics stores in the United States, has already established itself as the industry leader in Canada, with almost 30 percent of the market, said Ed Strapagiel, vice president of the market research firm Kubas Consultants in Toronto. Wal-Mart Stores Inc. is No. 2 with 7.5 percent, and Costco Wholesale Corp. and the RadioShack-bannered stores are tied for third with 6 percent apiece.

Strapagiel said the turf war between Circuit City and RadioShack can't be good for either company, since shopping malls probably won't be able to support both stores, which are typically smaller and compete for more convenience-driven consumers.

"Having two players at that end of the market will certainly make it tougher for them," he said.

 

[Byron]

If I need something cheap i go to the electronics retailers on Kennedy Rd. or Pacific Mall. If I'm looking for something expensive or of high quality (surround sound, stereo, etc.) I go to either Best Buy or Future Shop.

There's really no need for me to ever step into a RadioShack again, and I haven't done so in years. I don't see that changing.

 

[samsonyuen]

Yeah, I only go to Radio Shack if I'm in a mall already and need something like batteries.

 

[doady]

I don't remember ever shopping at Radio Shack before. It has always seemed like a really crappy store to me.

 

[samsonyuen]

InterTAN files lawsuit against RadioShack
MAY. 17 5:16 P.M. ET InterTAN Canada Ltd., a subsidiary of Circuit City Stores Inc., on Tuesday said it has filed a lawsuit that accuses rival RadioShack Corp. of harassing dealers and misrepresenting pricing in a bid to hurt business.

The lawsuit, which was filed in Ontario Superior Court of Justice and seeks $7.9 million in damages, is just the latest move in a skirmish between the two companies that began last year when RadioShack filed suit in a Texas to end a licensing arrangement with Ontario-based InterTan, which Circuit City acquired in May 2004.

In March, a judge granted a motion for partial summary judgment that bars InterTan from using the RadioShack name in Canada starting July 1. In response, Circuit City said it would rename more than 900 RadioShack stores that InterTAN operates.

Claiming victory, RadioShack has said it plans to open as many as 30 stores in Canada by the end of the year. In its lawsuit, InterTAN accuses RadioShack of "intentionally misrepresenting" the court decision as a victory because it is under appeal.
A spokeswoman for RadioShack said it has not officially been served, and could not comment.

RadioShack shares rose 25 cents to close at $25.36. Circuit City shares close up 29 cents to $16.50. Both trade on the New York Stock Exchange.

 

[vid]

Wow.

Capitalism is fun!

(no, really!)

 

[LooselogInThePeg]

There must have been a time when Radio Shack was the only outfit in town because they seem to still think so. Reminds me of the demise of Eatons in a way. Kept on charging a fortune for the same crap people could get anywhere. Kept insisting that they had some special 'customer service' advantage or something. Oh well. That's why nobody buys anything at Radio Shack to begin with. If the "real" Radio Shack wants to come back into Canada I suppose I wish them the best of luck but I doubt people will flock to their stores under that name to begin with.