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RadioShack Corp. Q4 2007 Earnings Call Transcript

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2008-02-26 10:44:07.0

Tags: RadioShack Corp.

Question-and-Answer Session

Operator

(Operator Instructions). We'll take our first question from Matthew Fassler with Goldman Sachs.

Robert Higginbotham - Goldman Sachs

Hi, it's actually Robert Higginbotham for Matt. I would like to talk about video games for a minute, if we could. I mean, could you give us some more color about what the expanded assortment will look like relative to what you currently have in the stores now? And related to that, I suppose that eventually the assortment would cover all the current platforms. Could you give us a sense of when you think you'll have access to products that are currently in short supply?

Peter Whitsett

This is Peter. I will answer the question and look to my colleague here to fill in. We have always had a very good accessory business and as I mentioned around our private label and our expansion of our accessory business into the gaming category, a lot of the gaming categories would come under our brand and we'd be sourcing those. We certainly had some good success as Jim mentioned in the fourth quarter with a lot of the hardware components of the gaming business.

And as that product supply has continued to open up in some of the areas, we're continuing to flow those out to Jim's point to a greater number of stores and into a greater assortment. I think there is still some uncertainty about few of the platforms in general, but as we were getting more inventory to Jim's point we are rolling that out through a greater number of stores.

Bryan Bevin

And I think what you saw in last year to your point is we were a little bit challenged in our access to some of the inventory that was tight, partly because of one we made the decision to get in to video gaming. So, obviously this year with better planning our front end would be our intention that the availability to that inventory would be better in '08 than what you saw from our stores in '07.

Julian Day

Yeah. And Rob, I would only add to that that I think, as you know we did a very soft launch entrance into this category, so we could test our way in to it last year. And obviously that the fact we haven't been in it previously and did a soft launch, I think we meant that some of the vendors were sort of unsure as to what our overall plans were there given the product was in short supply, were in some cases reluctant to commit to us without knowing what our plans for the business overall were.

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