Second Opinion on Dell Buying Radio Shack

ZDNet’s Larry Dignan has taken some time to chew on BusinessWeek’s recent proposal that Dell solve its retail challenges by buying Radio Shack, and he finds a number of reasons to decalre it a non-starter. There are Radio Shack’s ongoing sales slumps and financial challenges, which have even bullish analysts making comments like, "How long […]

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ZDNet's Larry Dignan has taken some time to chew on BusinessWeek's recent proposal that Dell solve its retail challenges by buyingRadio Shack, and he finds a number of reasons to decalre it a non-starter.

There are Radio Shack's ongoing sales slumps and financial challenges, which have even bullish analysts making comments like, "How long before the wheels fall off?"

And there's Radio Shack's actual retail presence. Sure, they've got more than 4,000 stores. But most of them are in dusty strip malls or worse. And have you been inside one of those stores and looked at the average customer? Not exactly the kind of mass-market consumer Dell wants to reach.

Dignan's solution for Dell is to hand over some serious baksheesh to Best Buy in exchange for some truly valuable floor space.

Buying Radio Shack Could Kill Dell[SeekingAlpha]