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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 Argon18 on 3/5/2014 10:38:29 PM , Rating: 0
"Radio Shack is a relic, about as useful as the USPS."

Huh? Are FedEx and UPS going to reliably deliver a letter for you anywhere in the country for 49 cents? Nope.

Ever tried to get your money back for a loss/damage claim from FedEx or UPS? It's a painful painful process. With USPS, I walk up to the counter with my damaged item, the packaging it shipped it, and the original receipt, and they give me cash money on the spot. Same for Priority Express overnight deliveries - they're guaranteed. It gets there one day late, and you get a full cash money refund.

And don't even get me started on the horrible experience of international shipping with DHL, FedEx, or UPS. I will never in my life use those three again for international packages. With USPS it's cheap and painless.

By inperfectdarkness on 3/6/2014 4:39:19 AM , Rating: 2
That, and the fact that until legislation changes, USPS is the only method to get stuff shipped to APO/FPO. Granted, I'd LOVE for that to change...but no USPS, no shopping online. That would be a fate worse than death for many servicemembers stationed overseas.

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