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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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Lost focus
By Argon18 on 3/4/2014 4:33:41 PM , Rating: 0
Radio Shack's problem is they've lost their way. They have no focus. They started out as a great place for electronics hobbyists, with just about any circuit component you could want. All in-stock and ready for you to buy same-day. That was awesome.

As consumer electronics have become cheaper in a race to the bottom, they've become disposable. Nobody wants to spend the time to change out those leaking capacitors when you can chuck the whole thing in the trash and buy a new one for $29. Kids these days are too busy playing Angry Birds and Facebook to be bothered with learning the electronics hobby.

So Radio Shack shifted strategy to cheap remote control cars and cell phones. But you can already buy these things at the Big Box Stores like Best Buy and Wall Mart and Fry's, which are larger and have more of a selection. Meanwhile their electronics hobbyist section of the store has gotten smaller and more disheveled, crammed into a small corner in the back of the store.

So today you have a Radio Shack that doesn't really know what it wants to be when it grows up... except that it's already grown up and then some. 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.




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!!


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