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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 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.

"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
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