RadioShack Hopes to Entice Customers with Low Price Guarantee

RadioShack (NYSE:RSH) recently launched a new low price guarantee scheme on mobile phones as a way to assure customers that they are offering the best deals. RadioShack has promised to match competitors’ newspaper and circular pricing on similar postpaid and no-contract mobile phones at the time of purchase or for up to 30 days after the purchase. Competition in the retail industry has intensified with online players such as Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) posing stiff competition to brick and mortar retailers such as RadioShack, Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and Best Buy (NYSE:BBY).

See our complete analysis for RSH stock here

RadioShack is trying to woo customers with lucrative schemes

• RadioShack is taking initiatives to survive in the intensely competitive retail industry. It has a Trade & Save program wherein customers can trade their used mobile phones and other devices for immediate credit toward their next purchase.
• The company’s new Mobile Product Support provides customers with free specialist support services to resolve their mobile phone or other device-related issues at no additional cost.

In a more recent development, RadioShack’s stock price plunged approximately 30% following the release of its preliminary Q4 results. The company’s performance has been adversely affected due to significant growth in the online retail market. We think with the latest low-price guarantee scheme, RadioShack will be not be able to develop a rapport with customers but also discourage them to scout for discounts at other retailers. More of such advertising and brand building measures will pay a crucial role in RadioShack winning back its customers.

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