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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.


"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

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