Is Wireless Retail a Profitable Business?

February 23rd, 2005

For Radioshack, it apparently is. For 4th quarter 2004, Radioshack reported that 40% of its revenue ($1.59 billion) comes from wiress products (primarily handsets). That translates to about $636 million, still peanuts considering that the entire US wireless industry is a $40 billion per quarter market. Back to Radioshack, it has about 7,000 company and dealer stores, so each store has average wireless sales of $91,000., i.e. an annual run rate of about $360,000.

RadioShack also operates wireless kiosks in Sam’s Club and in-store Sprint-branded kiosks. According to RadioShack, it is growing highly productive square footage through these concepts. The Sam’s and Sprint kiosks are approximately nine and 15 times, respectively, more productive than RadioShack stores’ $342 per square foot.

For entrepreneurs who want to get into the wireless retail business, you might want to check out a new report from Consumer Electronics Association – Wireless Retailer Survival Guide.

You can then check out whether you would like to work with a wireless franchise company, such as @Wireless etc.

UPDATE: RadioShack offers a franchise program as well. They have over 1,500 franchise stores and it costs about $25,000 to join. You also would need at least additional $75,000 as startup capital.

Entry Filed under: Mobile Marketing

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