Finally, a report showing a consumer electronics retailer gaining some benefit from the DTV transition. Instead of riding a wave of digital receiver sales to a banner year, Best Buy struggled in a sluggish economy and Circuit City went under. But Radio Shack just rode the sale of digital-to-analog converter boxes to a positive Q1 2009, going from $38.8M in Q1 2008 to $43.1M this time. It said it sold over 1M units in the quarter for $70M.
However, according to the Associated Press, the company will be hard pressed to keep the momentum going once the DTV transition is in the books and people are no longer forced to buy the converter boxes. They suggested a renewed focus on cell phone sales would be necessary to keep the company moving forward in a positive manner.
Analysts also noted that the company was benefitting from the absence of Circuit City.
RBR/TVBR observation: Ironic that this company is talking converter boxes and cell phones with nary a peep about radio, the medium it’s named after.