RadioShack To Close 20 Percent Of Its Retail Locations
March 4, 2014
RadioShack said on Tuesday it would close about 1,100 of its retail stores in the United States. The move comes after the company reported poor holiday sales, according to The New York Times.
The Texas-based retailer, once known as Tandy Corporation, will see its retail footprint shrink by 20 percent, to around 4,000 stores, including franchises. During the fourth quarter, the company reported a loss of $191.4 million. This compared to a loss of $63.3 million year over year.
This showing was worse than analysts had been expecting, according to a survey conducted by Thomson Reuters.
For 2013, RadioShack reported a loss of $400 million, compared to a loss of $139 million the year before.
Founded in 1921, RadioShack has struggled in recent years as the consumer electronics environment has changed. In February 2013, the company hired Walgreen’s Joseph C. Magnacca as its new chief executive, in the hopes of turning things around.
Of RadioShack's recent performance, Magnacca notes:
Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues.In February, the company released a new commercial during the Super Bowl. "In With The New RadioShack" hoped to show that a lot has changed at the retailer in recent years. To get this point across, the ad featured personalities, games, and devices from the 1980s. http://youtu.be/oUwwZHdx6SU RadioShack has not yet announced which of its retail locations will face closure.
