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These 1,100 stores represent about a fifth of its total

After a harsh holiday season with deeper cuts than expected, RadioShack is closing 1,100 stores across the U.S.

These 1,100 stores represent about a fifth of its total, with about 4,000 stores remaining once the closings are complete. 

RadioShack originally planned to only close about 500 stores after a disappointing holiday season in 2013, but the now that the numbers are in, the electronics chain more than doubled that number to match its losses. 

The drop in holiday sales for 2013 left RadioShack with a loss of $400 million USD for that year. 

For Q4 2013 specifically, RadioShack reported a $191.4 million loss, which was much worse than the $63.3 million loss a year earlier. Revenue also fell 20 percent to $935.4 million.


[SOURCE: Seeking Alpha]

To top it off, RadioShack shares dropped 28 percent in early trading after the company reported that store sales decreased by 19 percent over the holiday quarter. 

"Our brand equity remains strong, reflected in the sales growth we're seeing in our new Concept Stores which redefine the RadioShack store experience," said Joseph C. Magnacca, chief executive officer. "We have also been encouraged by the positive response to our new brand positioning around 'Do It Together,' which we kicked off with our award winning Super Bowl commercial. Importantly, our key hires during the fourth quarter in merchandising, global sourcing, planning and allocation and, more recently, our new chief financial officer, round out our new leadership team as we continue to re-build the business."

The company said that causes for the poor holiday season was better deals from rivals, reduced shopping traffic and weak sales in smartphones and tablets, which accounts for about half of the company's sales. 

Radio Shack isn't the only electronics chain suffering from weak sales due to better deals from online competitors. In 2012, the chain gave a list of 50 store closings in the U.S. and also closed its UK stores earlier that year. 

Source: RadioShack



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RIP Ratshack
By CalaverasGrande on 3/4/2014 3:06:00 PM , Rating: 5
I grew up as a nerd who hung out at Radio Shack. I got my first taste of computers (TRS80), synthesizers (Moog MG1) and DIY kits from Radio Shack.
Now they just sell Cellphones and RC cars.
They ought to get back to their roots and exploit the maker/diy popularity.
Actually stock electronics parts and have staff that know what they are?! Maybe have a 3d printer as a loss leader to get folks in the store.




RE: RIP Ratshack
By MrBlastman on 3/4/2014 3:26:03 PM , Rating: 4
Exactly. This is where they need to focus on as well as perhaps niche high-end gadgetry including cutting-edge stuff like latest TV tech to get the everyman in looking. They've had an identity crisis for the longest time and can't figure out what they want to do.

They still have the soldering drawers and section, along with cables and plugs (I still go there to buy things like this sometimes when I can't find it elsewhere). The problem is companies like Frys and Microcenter are now selling that stuff also along with newer "fad" things like the arduino (maybe they will become more? I see potential). As such they've lacked a real way to draw foot traffic in a long time.

They need something special, something to get people talking beyond advertising alone. If they nerded out that'd be a start. I still remember going through their catalogues every few months back in the 80s, drooling over all the neat stuff they had. Of course, catalogues are dead and the internet is alive. They need to strengthen their presence online, too.

I don't want Radio Shack to go away. :(


RE: RIP Ratshack
By Reclaimer77 on 3/4/2014 11:54:07 PM , Rating: 2
quote:
The problem is companies like Frys and Microcenter are now selling that stuff


Yeah but they barely have any physical locations. I wish I could shop there, but not enough to drive to Atlanta lol.

A few month ago the fuses blew out on my amplifier. I went straight to Radio Shack and they had them. I don't know where else I could have gone around here to get that oddball size fuse. I didn't want to wait for an online order to get here. I can't go two days or more without audio!

It's gonna suck if they close. These people cheering Radio Shack's demise are kinda of retarded.


RE: RIP Ratshack
By wordsworm on 3/5/2014 12:31:23 AM , Rating: 2
"Source" replaced RadioShack where I live. I went hunting for educational toys before Christmas, something Radioshack was great for. I couldn't even find a digital microscope anywhere offline at a variety of electronic stores.

Radioshack will never disappear. It's got too much history. It's like Atari. It will never really go away.


RE: RIP Ratshack
By maven81 on 3/4/2014 3:51:39 PM , Rating: 3
You nailed it. Radio Shack are idiots. Their Super Bowl ad had it backwards, they should have gone back to the 80s, not try to be a mediocre version of best buy. When they had a decent selection of parts I actually bought things like switches, wire, flux etc when I was working on projects. Now the parts are nearly gone, and what's left has a ridiculous markup. (Blue LED for a friend's halloween costume for 3 bucks a piece?!)


RE: RIP Ratshack
By Flunk on 3/4/2014 3:55:07 PM , Rating: 2
I'd guess I'm a bit younger than you but it seems to me like Radio Shack has been a place that sells things you can get anywhere else for terrible prices with awful service.

I wouldn't even think of buying anything there and I didn't even realize they ever stocked actual electronics parts. I normally go to an electronics store for those.


RE: RIP Ratshack
By ShaolinSoccer on 3/4/2014 11:51:53 PM , Rating: 2
quote:
I'd guess I'm a bit younger than you


Yep, Radio Shack was THE place to go to for anything that had to do with electronics. I had one about 5 mins drive from me and I was there almost everyday. If I wasn't buying something, I was messing around on their music keyboards or PC's on display.


RE: RIP Ratshack
By amanojaku on 3/4/2014 4:02:18 PM , Rating: 3
No, RadioShack should just liquidate. It's trying to compete in a saturated market where it is outclassed by even Best Buy. However, if it were to do as everyone else in this thread suggests, it would go out of business that much faster. This isn't the 80's any more. You can't have a brick-and-mortar business based on do-it-yourselfers and tinkerers. There aren't enough of us to pay the high store rental prices. How many people run to RadioWhack, Worst Buy, or even Home Despot for cables and components? Not many. The Internet has killed RadioShack's old business.


RE: RIP Ratshack
By HoosierEngineer5 on 3/4/2014 5:20:09 PM , Rating: 2
Radio Shack used to be a place where smart kids spent their allowance, or worked their through college for minimum wage to buy pizza and gas. It doesn't seem that way any more. I am surprised they have hung on as long as they have. Middle management/upper management never really seemed to get it, and reading the current quotes from management (mostly noise) doesn't give me much hope.


RE: RIP Ratshack
By drlumen on 3/5/2014 12:21:30 PM , Rating: 1
I cut my teeth on the Radio Shack catalogs of the 60's and spent many days and dollars in their stores in the 70's and 80's. With everything on a single chip now it is harder to 'fix' most electronics. But they really should examine their DIY roots.

Personally I think they should cater more to the green energy movement and have more items like PV cells, wind generators, transfer switches, battery chargers, home automation/energy management and the like. AND, have employees that are knowledgeable in those areas.

I know cell phones/cases, TV's and monster cables (ugh) are prettier and sexier than boxes of marine batteries but phones and the other stuff are quickly getting to the point of being disposable. Maybe RS could start a phone-of-the-month club or give you a free phone on your birthday. j/k

I don't understand their desire to be Best Buy when Best Buy is circling the bankruptcy drain.


Convenience is dying as prices drop
By superstition on 3/4/2014 4:34:41 PM , Rating: 4
People can mock Radio Shack and Sears but low low prices often come with low low convenience.

Sears, for instance, offers a 5 year extended warranty on appliances -- one that can be extended. Given the extremely low quality of GE dehumidifiers (and their fridges), for instance, you may end up buying a new one every year or two like I had to. Sure, those lower prices seem nice until you realize you're spending more in money, time, and effort to deal with low-grade merchandize that is not backed by any sort of reasonable service.

We also like our Kenmore dishwasher but the extended warranty has been a great thing since the circuit board went out after seven years and would have cost us hundreds. We live in a lightning-prone area so extended appliance warranties are worth their weight in gold -- regardless of the planned obsolescence model that involves making things that break after a few years at best.

Being able to walk into a store and get help with something is something you can't do with Newegg, home of the friendly restocking fee. I was able to take a video game console into a Radio Shack and get the right replacement adapter. My mother did the same thing with her old laptop. Sure, I could find this stuff on Ebay and go through a lot of trouble to get it.

Often enough you get what you pay for. Those high-priced items at Radio Shack give people jobs and give customers convenience. The same thing is true for cashiers at grocers and stores like Wal-Mart. People are so willing to throw away their valuable time and energy to save a few cents on the dollar.

And, as far as the US postal service goes, it is the most efficient public mail service in the world.




RE: Convenience is dying as prices drop
By fortiori on 3/4/2014 10:42:57 PM , Rating: 2
Completely agree. 1,100 stores...when i saw that i got sick to my stomach. Those are thousands of human beings who just lost their jobs and means to support themselves. The future is looking very grim.

I have a soft spot for radioshack. I worked in an arcade for a couple years in my early 20s and they always came through with their rows of obscure parts when a machine needed some work. Good little place, if a little anachronistic. It'll be sad to see them go. Before long there won't be any more 'thems' left.


By Argon18 on 3/5/2014 10:33:01 PM , Rating: 2
"Completely agree. 1,100 stores...when i saw that i got sick to my stomach. Those are thousands of human beings who just lost their jobs and means to support themselves. The future is looking very grim."

Meh, not so much.

How many Radio Shack retail store employees are the household bread winners providing for a family from that job? A very small number I'd wager.

How many of them are teenagers living with their parents in upper-middle class neighbourhoods? Probably the vast majority. Of the five Radio Shack retail stores in my area, I don't think I've seen an employee over ~25 years old at any of them.


By inperfectdarkness on 3/6/2014 4:34:36 AM , Rating: 2
I believe that the principle of Conservation of Mass and Energy also applies to jobs. That is to say that jobs can neither be created or destroyed (relative to the population size)--that they only change form.

Robots doing assembly-line work may replace workers on the assembly line...but now require technicians to maintain and programmers to develop their execution routines. Mom and Pop stores dying off when Wal-Mart comes to town give rise to Mom and Pop stores selling on Amazon and Ebay. Don't mourn over job losses; instead, look towards the future with wonderment and optimism at what new jobs will develop.

As to the history of Radio Shack, as a kid in the 80's, it was THE place with the coolest stuff. Where Radio Shack missed its calling was Newegg.com. If Radio Shack had envisioned the potential online--it could be that Newegg never even existed. Instead...as with Best Buy...Radio Shack kept blindly (almost dogmatically) pushing ahead in the veins that its CEO's deemed best.

This is the 21st century. Expect to see a LOT of brick & mortar stores dying off. Expect to see a substantial increase in transportation and freight. There will be jobs...just different ones from those that existed before.


Lost focus
By Argon18 on 3/4/14, Rating: 0
RE: Lost focus
By atechfan on 3/4/2014 5:19:39 PM , Rating: 5
quote:
It's like the 38 year old unemployed nerd still living in his parents basement, destined to spend the rest of his life alone beating off to anime porn.


Your life story?


RE: Lost focus
By Argon18 on 3/5/2014 2:31:11 PM , Rating: 2
You wish. More like the life of your average Wintard Fanboy, suckling at Steve Ballmer's teats!!


Radio Shack -
By DT_Reader on 3/4/2014 6:07:25 PM , Rating: 5
Radio Shack - You've got questions? We've got blank stares.




The grand irony
By CaedenV on 3/4/2014 4:04:02 PM , Rating: 2
The grand irony of all of this is that they were right on with their Superbowl commercial: The '80s called and they want their store back! Back in the '80s and early '90s The Shack was a great place to pick up capacitors and other odds and ends. It was like a Lowes or Home Depot for electronics repair, and it was awesome!
With the rise of the Maker Movement you would think that a place like Radio Shack could really make a comeback... but no, it is all about overpriced 5 year old RC cars and cell phones. They still have components, but they are crammed away in the back, with no intelligent staff to help you out, and priced so prohibitively that even a nun would give it up for less.

If they are not going to give us our '80s store back, then they can get what they deserve.




By chromal on 3/4/2014 10:58:40 PM , Rating: 2
TheShack(tm) lost its way long ago when they moved away from serious electonic supplies and the DIY market and offered successfully lower quality and greater retail markup on what little they did offer. The stores generally became smaller, stocked even less useful components.

RadioShack's only real competetive advantage was that they might actually have a useful needed component you could go and drive and buy, vs order online. But the markup is appaling, the selection is appaling, there's just no reason for them to go on as far as what I want from them.




Monoprice
By coburn_c on 3/5/2014 1:57:09 AM , Rating: 2
I feel bad for the loss to the community, plenty of displaced workers and whatnot, but Radio Shack seriously needs to go. Perhaps Monoprice could buy them out in bankruptcy court and turn the locations and staff into a decent cables and components store.




A shell of its former self
By Windogg on 3/10/2014 12:48:08 PM , Rating: 2
As with many others, I have many fond memories of dad taking me to Radio Shack to pick up various parts to build or repair electronics. Their brand Realistic held some hidden gems of high quality rebrands. The folks that worked there knew the part you needed with a few questions.

"The Shack" lost me with two incidents. Today the folks there are the typical retail drones looking just to get by. One day I needed a fuse and resistor to repair an item. I might as well have asked for a flux capacitor as the 4 clerks standing around were clearly puzzled. Took 30 minutes of combing through unsorted trays to find what I needed.

Not only have they become a crappy "Best Buy Lite" but they also admittedly prey on those in a jam with obscenely marked commodity items. One night my mother in law needed an AC adapter. Got gouged close to $40 for the adapter and proper tip. Just a few years previously, $15 bought you a universal AC adapter with tips compatible with just about every device on the planet. Rip me off like that and my business goes elsewhere.




By Reflex on 3/4/2014 3:24:49 PM , Rating: 3
USPS is just as useful as FedEx and UPS. The only thing preventing them from profitability is the ridiculous congressional mandate to fully fund their pensions, a requirement that their competitors do not operate under.


By mdogs444 on 3/4/2014 3:28:52 PM , Rating: 1
And you conveniently left out the fact that private sector pensions are not guaranteed, where as USPS is.

In addition - look at other government pensions that are not run like the USPS is forced to.......for example....the state of IL pension system. Hows that stacking up?


By kfonda on 3/4/2014 5:26:01 PM , Rating: 2
Don't forget Detroit.


By Argon18 on 3/5/2014 10:41:58 PM , Rating: 2
"Don't forget Detroit. "

For sure. If anyone was wondering what decades of greedy Democrats and corrupt Unions will do to a city, Detroit is a perfect case study.


By anactoraaron on 3/4/2014 5:51:06 PM , Rating: 3
Everyone has somewhat conveniently left out that they have to fund 75 (Seventy-Five) years worth pension funds.

Why fund pensions for folks that aren't even born yet that will work there??

quote:
the state of IL pension system


Has nothing to do with the USPS, which ran over a century and a half in the black (until the pension mandate)- the only government institution that I am aware of that has ever done so.


By BRB29 on 3/5/2014 9:01:52 AM , Rating: 1
The rest of the government hope future taxes will cover the pensions. But they think it's logical to force USPS to have 75 years of pensions in place before these people even retire.

Honestly, there are some retarded things happening in our government.

AFAIK, USPS has been very efficient probably the one part of the government that is actually fiscally responsible. Just compare their funding, what they do, and the scope/scale of it.

Then you look at DC Metro and realize that they over pay their bus drivers like crazy. Average bus driver working for the Metro system gets paid $94k. Thank the labor union.


By ebakke on 3/4/2014 3:33:18 PM , Rating: 2
Set the USPS free! Lets give it to the employees, and wash our hands of it. No more approval from Congress to open/close offices. No more legally mandated monopoly. No more pension funding requirements. None of it. G'bye, and good luck.


By tayb on 3/4/2014 3:34:10 PM , Rating: 2
Not only that but Congress is actively restricting USPS from pursuing other revenue generating business opportunities. They have been wanting to turn post offices into Fedex Office/Kinkos competitors but they were not allowed.

There are many people in the Congress who want to see USPS fail miserably and use that failure as an example for shutting down other government programs. And so they restrict their ability to generate revenue and force them to incur expenses no other company would be required to incur.


By retrospooty on 3/4/2014 6:26:23 PM , Rating: 2
OK, anyone else want to clue him in on how banks work with automatic transfers? It can all be done via the web for virtually free. If some smaller entities aren't using it and require the bill pay entity to mail it, then they would need to update. But that isnt really my point... I am not saying abolish it, just get the govt the hell out of it and abolish alot of other govt departments that do nothing but waste money. Make it a private business and it has a shot.


By anactoraaron on 3/4/2014 6:34:20 PM , Rating: 2
Hey I'm all for abolishing government departments that waste money, but if you read my other comment, the USPS was in the black for over a century and a half before the pension mandate. They weren't losing money, they were actually making money (what? it's successful? SHUT IT DOWN!)

Not everything can nor should be done via the web by the majority of Americans (isn't 30% of PC's still on XP?). If that works for you, that's fine. Also don't forget about those folks that don't have internet access (poor and country folk).


By EnzoFX on 3/4/2014 7:13:23 PM , Rating: 2
You can't argue with willful ignorance. As an aside, I prefer the convenience and the options of USPS over any of it's competitors.


By retrospooty on 3/4/2014 10:47:39 PM , Rating: 1
And how is wanting the us govt. out of the shipping/delivery business willfully ignorant exactly?


By reckless76 on 3/6/2014 2:23:19 PM , Rating: 2
Why would you lump the USPS in with govt programs that waste money? The USPS is completely fiscally independent. They receive no tax dollars or any other federal help. The fact they have survived this long is really quite amazing, especially considering the amount of active sabotage they must endure.


By Reflex on 3/4/2014 8:25:20 PM , Rating: 2
I do not understand this mentality. If the only case you can make for government being a bad thing is the one where you purposefully use legislation to make government operate inefficiently, then you have a pretty poor case against government involvement. You do, however, have a great case for crappy legislation being the primary problem in bad governance.

Some things the government does well. Some things it does not. However purposefully sabotaging the government's ability to do things well makes a disingenuous case at best, and is cutting off one's nose to spite one's face.


By superflex on 3/4/2014 3:49:44 PM , Rating: 2
But where will I go for $40 speaker cables, $30 HDMI cables and $20 RG-6 patch cables?
The place is a joke staffed by imbeciles.
monoprice.com ftw


By CaedenV on 3/4/2014 3:59:26 PM , Rating: 3
$30 HDMI cables? you mean they had them on sale!


By inperfectdarkness on 3/6/2014 4:39:19 AM , Rating: 2
That, and the fact that until legislation changes, USPS is the only method to get stuff shipped to APO/FPO. Granted, I'd LOVE for that to change...but no USPS, no shopping online. That would be a fate worse than death for many servicemembers stationed overseas.


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