Radio Shack Becomes The Shack

In an effort to rebrand itself as a more contemporary company, Fort Worth, TX-based U.S. retailer Radio Shack will soon be known as simply "The Shack".

"Trust is a critical attribute of any successful retailer, and the reality is that most people trust friends, not corporations," says Lee Applbaum, Chief Marketing Officer at The Shack. "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."

RadioShack Corp.'s new brand name will be supported by a major campaign. In addition to hiring on a new advertising agency and having plans for big launch events in both New York and San Francisco, the retailer has also partnered with seven-time Tour de France winner Lance Armstrong. The Shack will serve as a sponsor of Armstrong's new American Pro-Tour cycling team, and will work with the Lance Armstrong Foundation and LIVESTRONG campaign in the global fight against cancer.

The retailer is also adjusting its product offering, most recently with the addition of T-Mobile phones, contracts, and accessories to its lineup. Like other retailers, including Best Buy and Future Shop, The Shack is hoping to ramp up its presence in the continually growing mobile phone market.

"We have tremendous equity in consumers' minds around cables, parts and batteries, but it's critically important that we help them to understand the role that we play in keeping people connected in this highly mobile world," explains Applbaum. "You will see a real focus on mobility and wireless products from leading brands in our new advertising."

The first major unveiling of The Shack will take place at Netogether, a three-day event in Times Square; and at San Francisco's Justin Herman Plaza this week. Both events will be connected via 17-foot laptop computers with webcams that feature live video and audio exchanges between the two. The events include live music, celebrity appearances, and contests. The live video feeds will be accessible at www.radioshack.com/theshack starting August 6 and through to the 8th.

"Everyone knows RadioShack," notes Greg Stern, CEO of Butler, Shine, Stern and Partners, the ad agency handling the new branding campaign and creative. "Our job is to communicate what The Shack stands for today."

Radio Shack-branded storefronts in Canada are not part of RadioShack Corp. in the U.S., but rather only license the name from the Fort Worth, TX-based company. The now defunct U.S. retailer Circuit City purchased Radio Shack storefronts in Canada last year, prior to its bankruptcy, and renamed them to The Source by Circuit City. Today, Bell Canada owns InterTAN, Canadian parent to The Source stores.

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