Will New CEO Be the Right Rx For What Ails RadioShack?
While president of Walgreens’ Duane Reade division, Joe Magnacca helped develop a flagship concept he called "the most exciting drugstore in the world." That concept, with an emphasis on fresh and healthy food offerings, became the inspiration, if not the blueprint, for the latest generation Walgreens. Now, many are wondering if Mr. Magnacca will be able to bring his brand of marketing and merchandising magic to RadioShack as the chain’s new chief executive officer.
"Joe is a leader with significant experience in transforming iconic brand names into strong operating businesses," said Daniel R. Feehan, non-executive chairman of RadioShack, in a statement. "We believe he will be a catalyst for change at RadioShack in refining our merchandising strategies, reinvigorating the shopping experience for our customers and building sustainable value for our shareholders."
Mr. Magnacca, who most recently served as executive vice president and president of Daily Living Products and Solutions for Walgreens, becomes RadioShack’s fourth CEO in the past three years. Before Walgreens/Duane Reade, he worked at Shoppers Drug Mart and Loblaws.
"I see advantages in being a small box retailer in the consumer electronics space today, particularly with the broad retail footprint and convenience RadioShack offers its customers," Mr. Magnacca said. "I believe my experiences will help the team identify and execute on new opportunities that can return this great company to a position of prominence in the lexicon of American retailers."
There are some who believe that even a merchant of Mr. Magnacca’s stature will face steep challenges in getting RadioShack on the right track in today’s consumer electronics business.
"Merchandising remains a big challenge, handicapped by the company’s small stores. I think it’s a tough go for any executive," Scott Tilghman, an analyst at B. Riley & Co., told Bloomberg News.
- RadioShack Names Retail Merchant Joseph C. Magnacca Chief Executive Officer – RadioShack Corp./PRNewswire
- RadioShack’s New CEO Faces Challenge as Profit Slides – Bloomberg News
- Duane Reade Opens ‘Most Exciting Drugstore in the World’ – RetailWire
What will it take for Joe Magnacca to get RadioShack turned around? Are there specific steps you think he would be wise to take?