RadioShack stores in Canada will soon have a new name: The Source By Circuit City.Circuit City Stores Inc., the No. 2 U.S. electronics retailer, will unveil today the new banner and broader product selection for its more than 900 RadioShack outlets in Canada.
The move follows a recent court ruling that ended Circuit City's right to use the RadioShack name on stores purchased in Canada last year.
Alan McCollough, chief executive officer of Circuit City, said in an interview the company wanted to keep a separate name -- and identity -- for the Canadian stores because eventually it may bring its big-box Circuit City outlets to this country.
As well, Circuit City may eventually export The Source By Circuit City stores to the United States, he said.
"We want to make sure we kept the door open," Mr. McCollough said.
Circuit City outlets are about 2½ times larger than RadioShack outlets.
The name change followed the acquisition almost a year ago by Circuit City of InterTan Canada Ltd., which holds the licence for the RadioShack brand in Canada until June 30.
U.S.-based RadioShack Corp., in trying to block stores in Canada from using its name and stocking its merchandise, had applied for an injunction in a Texas district court seeking to end the licensing agreement that allowed InterTan to run the RadioShack stores.
The court recently issued a summary judgment that ended InterTan's right to use the RadioShack name in Canada.
Circuit City had said it might appeal the ruling but yesterday, Mr. McCollough confirmed that the company was going ahead with the name change.
Brian Levy, CEO of InterTan, said the stores will be rebranded, and RadioShack products removed, over the next two months.
As well, product selections in popular categories, such as digital cameras and flat-screen televisions, will be expanded, and in some cases more than doubled, he said.
"It's a good opportunity for us to reflect on what we were at that time, and what we are now, and aspire to be," Mr. Levy said.
He said the name The Source was chosen because the Canadian chain is known for sourcing electronic merchandise from overseas. Over the past 2½ years, it has sourced about 3,000 items.
South of the border, Circuit City has been struggling to keep up with U.S. leader Best Buy Co. The acquisition of InterTan was viewed as a way for Circuit City to strengthen its position by stocking its U.S. stores with popular RadioShack gadgets such as electronic toys.