Will todays Microsoft alliance help Tandy be the comeback kid of consumer electronic retailers?
Only three years ago, Tandy–RadioShack’s parent company–was on rocky ground, with dropping sales and earnings and a confused strategy in the consumer market amid a downturn in retail PC sales. Since that time, Tandy has shut down under-performing stores, popularized the “store within a store” concept, and gradually reversed its fortunes. With today’s Microsoft alliance, the company may have cemented its turnaround. The deal could reinforce the turnaround, analysts say, while providing a much-needed boost for the software giant’s Internet services. RadioShack will create Microsoft stores within its 7,000 retail outlets, the companies announced today, to promote Microsoft Internet services and products, including MSN and WebTV. The deal will also provide a boost for RadioShack’s e-commerce efforts, with Microsoft investing $100 million in RadioShack.com, a new Web site. The alliance also highlights the retailer’s recovery. At the end of 1996, Tandy shut down its Incredible Universe lin
