backtop


Print 47 comment(s) - last by Windogg.. on Mar 10 at 12:48 PM

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



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

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.


"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki