RadioShack's intense discounts may not be the bargain they're made to look like

RadioShack’s recent discounts aren’t the price cut they appear to be, Consumerist reports, citing employees who’ve grown tired of their “dysfunctional” employer’s actions.

Last month, before the retailer filed for bankruptcy on March 8, RadioShack management instructed workers in at least some locations to raise prices prior to sales, the employees told Consumerist.

“A couple of weeks ago we raised the prices of every item in the store by 20-50% and now our clearance sale is 20-50% off,” one worker told the consumer advocacy website.

Business Insider’s Mary Hanbury recently visited a Manhattan RadioShack location where Beats headphones were being sold at a “20% discount” that brought the price to $US159.99, which is the same price they fetch on Amazon — without a discount. RadioShack didn’t immediately reply to Business Insider’s phone call and email for comment.

Marking up before cutting prices is a not uncommon practice in the retail industry, as customers are increasingly unwilling to pay full price for items. However, such practices have led to some shoppers filing lawsuits against companies including Macy’s, J.C. Penney, and Kohl’s for what they argue is “deceptive and unlawful” marketing.

Radio ShackMary HanburyThese ‘discounted’ earphones are selling for the same price at Amazon.

Employees told Consumerist that, in addition to RadioShack’s price cutting schemes, they’d been forced to deal with uncertainty regarding if their stores would stay open as the retailer closes roughly 200 locations and general corporate disorganization.

“Everything seemed very dysfunctional from the higher ups,” one worker said to Consumerist. “We’d get one day’s notice for massive sales and rearrangements.”

To read Consumerist’s full article about employees dishing on RadioShack’s struggles, click here.

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