RadioShack's 'The Shack' Shift: 3 Things to Consider

04.08.2009

An electronics retailer hoping to become more modern with a catchy new two-word name...why does that sound so familiar? Oh, right -- because Circuit City did the same thing just before it went into bankruptcy.

Back at the end of '07, Circuit City announced it was : "The City." Attempting to shed the negative associations with its name, the company started opening The City stores -- basically, smaller versions of the same ol' place, but allegedly with more emphasis on pleasant customer experiences. (A novel concept, eh?)

Of course, we all know how that experiment ended: Less than one year later, Circuit City and The City were both headed to The Graveyard. First, . Then, within about a week, the rest .

Not to say that a two-word, article-based name is a certain sign of doom. But the similarity of the scenarios can't be reassuring.

Amidst all of this, one can't help but wonder: Did execs from The Shack happen to be lunching at when the inspiration struck? Or is it just a big coincidence?