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August 4, 2009

Radio Shack Name Change Begs the Question: What's "The Shack?"

Radio Shack is changing its name to The Shack, but only unofficially. The Shack is apparently a "branding nickname," while Radio Shack will remain as the company's proper name.

One Radio Shack executive told PC Mag:

When a brand becomes a friend, it often gets a nickname - take FedEx or Coke, for example. Our customers, associates and even the investor community have long referred to RadioShack as 'THE SHACK,' so we decided to embrace that fact and share it with the world.

The only problem here is that I really do not know anyone who refers to Radio Shack as "The Shack."

Nevertheless, to help promote the new name, Radio Shack, I mean... The Shack, is promoting the ""Shack Summer Netogether," a live event featuring two 17-foot laptops in NYC and San Francisco.

PC World says that rebranding in an attempt to distance itself from the "Radio" name is probably a smart move for Radio Shack, even though the real problem it is facing in today's market is the size of its stores.

While more and more electronics are shoved into the confined spaces of The Shack, its competitors offer a shopping experience that doesn't force you to check your personal space at the door.

Another blogger sees this as a doomed move, complaining that the name is "less descriptive and forward looking." Plus, basketball legend "The Shaq" might be a little upset at having his name equity violated.

Radio Shack has 97% brand awareness among customers despite the unfortunate pairing of the words "radio" and "shack." With those numbers, the brand name is not going to change. And although it may be referred to as the "somewhat-forgotten-electronic-store-that-people-only-visit-when-they-really-need-to," it is still a brand that has survived quite a few innovations in the electronics industry.

Pizza Hut, is another example of a brand that is dealing with a bit of nickname rebranding. In fact, Pizza Hut would have been named Pizza Shack by Dan and Frank Carney if the original store signage in Witchita, Kansas had been large enough for the extra two letters. My feeling is that Radio Shack knows what it is, and this effort to make it just a little more au courant is a good one. It just happens to be one of those brand names that sticks in the minds of consumers.

As far as the accuracy of the name goes, well, have any of you ever downloaded anything other than music from iTunes?

Technorati Tags: Radio Shack, The Shack Rebranding, Pizza Hut,The Hut, Company Name Change, Company Nickname

Posted by William Lozito at August 4, 2009 8:39 AM
Posted to Brand Naming | Branding | Company Naming | Consumer Electronics | Industry | Marketing | Naming | Retail | Technology

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