Amazon Might Hit the Bricks

Amazon is considering picking up part of the beleaguered RadioShack chain in order to “bolster its brick-and-mortar operations,” according to Bloomberg:

Amazon has considered using the RadioShack stores as showcases for the Seattle-based company’s hardware, as well as potential pickup and drop-off centers for online customers, said one of the people, who asked not to be named because the deliberations are private. 

The possible move, discussed as part of RadioShack’s looming trip to bankruptcy court, would represent Amazon’s biggest push into traditional retail. Amazon joins other potential bidders, including Sprint Corp. and the investment group behind Brookstone, in evaluating RadioShack stores, people familiar with the situation said. RadioShack has more than 4,000 U.S. locations and is moving toward a deal to sell a portion and close the rest, according to some of the people. Sprint has discussed buying 1,300 to 2,000, they said.

The implications of such a move are far-reaching:

Retail locations would put Amazon on more of an even footing with Apple Inc., which has hundreds of stores in choice shopping districts. While Amazon’s Kindle has been a breakthrough success, some of its other devices haven’t connected with consumers. Its Fire smartphone didn’t sell well and contributed to a $170 million inventory writedown in the third quarter of last year.

See the full piece here.