PCH teams up with RadioShack to support inventors, start-ups

Cork, San Francisco and Shenzhen-based supply chain company PCH and US retailer RadioShack have teamed up to create RadioShack Labs, a collaboration aimed at supporting inventors and start-ups to promote innovation.

"Every day we talk to startups and see new products, but the retail model, which demands large capital in the channel, doesn't typically work for startups and this hurts innovation," said Liam Casey, founder and chief executive officer of PCH.

Mr Casey said PCH collaborated with RadioShack team to find ways to remove barriers that stop unique products from getting on to shelves, and it means PCH will ship products directly from China to individual RadioShack shops.

“As a result we created a partnership that supports product innovation, while freeing up capital that would otherwise be tied up in the inventory channel,” he said.

RadioShack is currently going through a major restructuring after it reported a €294 million loss in 2013, largely because it has struggled in the face of competition from online retailers.

The linkup is with PCH’s Access division, which helps startups and inventors overcome the hurdles of logistics and get their products in the hands of consumers.

RadioShack will offer select PCH Access companies special retail terms, and create a direct path to up to 2,000 RadioShack stores and preferred positioning on radioshack.com.

The two will then put in a direct-to-store model for the products in question, reducing inventory requirements and increasing inventory turn in stores.

RadioShack's CEO Joe Magnacca, who was named chief executive last year, said that part of the group's efforts to transform the company is to simplify and streamline the channels that encourage inventors and entrepreneurs to join RadioShack in the retail environment.

“We see so many exciting consumer products coming from startups and we want these differentiated products in our stores. Traditionally, big retailing requires big inventory, but we can improve our supply chain and be a more nimble partner,” said Mr Magnacca.

RadioShack has been collaborating with PCH since January.

“With the combination of new retail terms that support innovative startups, and PCH’s experience in manufacturing, packaging and delivering product direct to stores, we believe we can rejuvenate our retail offerings,” said Magnacca.

One of the products that will feature in the RadioShack outlets is the modular electronics kit littleBits, which will be stocked in RadioShack stores in late summer.

“This announcement is a big deal for hardware startups. Ever since we launched littleBits, we’ve received calls from big box retailers wanting to carry our products, and we’ve said no because we didn’t want to deal with the inventory burden, the return policies and the financial exposure,” said Ayah Bdeir, founder and CEO of LittleBits.

“Plus, I’ve been wary about the amount of time agreements take to put in place. I think a startup friendly retail partner has the potential to transform brick and mortar by bringing in new talent and a much needed breath of fresh air.”