Lafayette Radio - Retail Stores

Retail Stores

Until the 1960s, many independent retailers in some markets became Lafayette Radio "Associate Stores", which were displaced when the company expanded. These stores were supported from headquarters at 111 Jericho Turnpike in Syosset, NY and a warehouse in Hauppauge, NY. A limited selection of product was stocked, with full access to a catalog with a wide variety of parts, tubes, cameras, musical instruments, kits, gadgets and branded gear that could be ordered and delivered through the local store. The company made major investments in what were called sound rooms to demonstrate hi-fi equipment, using custom switch panels and acoustic treatments in an attempt to duplicate a home listening environment and offer fair comparison with an assortment of branded hi-fi gear.

Managers were rewarded for maximizing gross profit margins and inventory "turns", which led to frequent out-of-stock situations, often remedied by frequent cross-town inter-store transfers. Each store had a repair shop on site with a part-time technician. Stores ranged in size from 2000 to 5,000 square feet (460 m2).

By the late 1970s, Lafayette expanded to major markets across the country, struggling to compete with Radio Shack, which was purchased by Tandy Leather Co in 1963. Lafayette ran into major financial difficulty when the FCC authorized a new Citizens Band ("CB") spectrum with 40 channels. Lafayette's buyers had firm commitments to accept delivery of thousands of the older design units, and were not able to liquidate the inventory without taking a serious loss. Eventually, all of the old CB radios were sold for under $40.

With fewer than 100 stores, far fewer than the aggressively expanding Radio Shack's thousands of local outlets, Lafayette Radio remained more of a dedicated enthusiasts' store than a mass marketer. The company was also hurt by the advent of electronics retailers relying on aggressive marketing techniques and competitive pricing in the late 1970s. Many experienced managers departed. Formerly a national chain, the remaining Lafayette stores in the state of New York closed by the end of 1981.

Some local Lafayette stores remained open until 1981. For example, the Long Branch, New Jersey, store finally closed in the Fall of 1981. Unsold inventory was literally shovelled into dumpsters overnight to vacate the store. One store in the Trenton, NJ area went on independently to become known as "Laraco Electronics". Laraco had one retail location that served the area on Business Route 1 in Lawrenceville, NJ until its closing in late 2002.

Several Lafayette stores were purchased by Circuit City of Richmond, VA. In order to keep the Lafayette name, which was popular in New York, Circuit City changed the store names to "Lafayette-Circuit City". However, these store locations were much smaller than a standard Circuit City, and did not carry major appliances, which Circuit City carried at the time. The stores were eventually closed as Circuit City left the New York Market (only to return later). The Syosset repair center was kept open a year after the last store closing to handle warranty coverage. Lafayette-Circuit City used the phrase "no haggling" in its ad campaign, which featured celebrities such as Don King, in trying to demonstrate that the lowest price was always posted, unlike many competitors in where you would have to bargain with the sales person for a lower price. This approach, however, did not work, and Lafayette-Circuit City fell due to competition from other New York area electronic retailers such as Newmark and Lewis, Trader Horn, The Wiz, Crazy Eddie and PC Richard.

As of 2003, the Lafayette brand name was re-launched at the CES show that year. Their products are only offered through special dealers and limited retail stores.