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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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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.


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