backtop


Print 47 comment(s) - last by Windogg.. on Mar 10 at 12:48 PM

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



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By Argon18 on 3/5/2014 10:33:01 PM , Rating: 2
"Completely agree. 1,100 stores...when i saw that i got sick to my stomach. Those are thousands of human beings who just lost their jobs and means to support themselves. The future is looking very grim."

Meh, not so much.

How many Radio Shack retail store employees are the household bread winners providing for a family from that job? A very small number I'd wager.

How many of them are teenagers living with their parents in upper-middle class neighbourhoods? Probably the vast majority. Of the five Radio Shack retail stores in my area, I don't think I've seen an employee over ~25 years old at any of them.


“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs

Related Articles













botimage
Copyright 2015 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki