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Retailers Turn To Kiosks

Rents can be an ongoing headache for franchisees, which has lead to the growing popularity of the kiosk in shopping malls. Yet side-effect of the frugal ‘Great Recession’ era is that many well-known chains are beginning to downsize, so much so that they’re reimagining themselves as kiosk-operators.

In its heyday, Radio Shack operated pretty units across the country selling all kinds of electronic supplies other than radios. The electronics game changed though in the last ten years. Radio Shack has switched its business approach to focus on the growing mobile phone market. In fact, they’re so hungry to corner this market, they’re opening kiosks in target.

Marketing Daily has the whole story. Cathy Hotka, described the move as ‘genius’, saying “Target is known both for its high traffic and desirable demographic, and kiosks selling high-demand items do really well -- this seems like smart partnering.”

This is interesting to us because it shows the shifting face of retail franchising and the return of the kiosk. Marketing Daily reports that Radio Shack’s sales were up last year, while the kiosk market suffered in a general sense, losing $7.9 million across the board. But that doesn’t mean the bottom has fallen out of the market. Hotka is so confident about Radio Shack’s kiosks she says you might see them in supermarkets.

So clearly, kiosks will continue to be successful. It’s just a matter of finding successful partnerships. It seems likely that Radio Shack and Target will be a good team.

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