I read an interesting article about Battery Plus. Their mainly in Canada but now expanding to the USA. I’ve heard of this franchise before but never really investigated the business. I have bought many after-market batteries for laptops and digital cameras before on eBay and Amazon and from miscellaneous stores I found on PriceGrabber for 75% under retail. It is true everyone uses batteries, and I think the store could work from a concept standpoint (I haven’t seen any financial numbers though). Most people don’t know where to go for batteries besides the limited selection at Best Buy and Circuit City. But, the biggest negatives I see are:
- high advertising costs to overcome the current zero brand recognition
- battery inventory turnover is probably quite low because there are such a wide array of electronics and computing devices
- mall kiosks seem a more appropriate cost effective way to sell these items and they will get free walk-by advertising
- storefronts can’t be dinky closest-like in size and feeling, so lease expenses will likely be higher than needed
- are batteries a commodity?
- Radio Shack seems in a much better position to capture this lucrative market