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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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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??

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.

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