RadioShack Reports Poor 2013 Holiday Season, Closing 1,100 Stores
March 4, 2014 2:55 PM
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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
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.
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RE: RIP Ratshack
3/5/2014 12:21:30 PM
I cut my teeth on the Radio Shack catalogs of the 60's and spent many days and dollars in their stores in the 70's and 80's. With everything on a single chip now it is harder to 'fix' most electronics. But they really should examine their DIY roots.
Personally I think they should cater more to the green energy movement and have more items like PV cells, wind generators, transfer switches, battery chargers, home automation/energy management and the like. AND, have employees that are knowledgeable in those areas.
I know cell phones/cases, TV's and monster cables (ugh) are prettier and sexier than boxes of marine batteries but phones and the other stuff are quickly getting to the point of being disposable. Maybe RS could start a phone-of-the-month club or give you a free phone on your birthday. j/k
I don't understand their desire to be Best Buy when Best Buy is circling the bankruptcy drain.
"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard
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