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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 inperfectdarkness on 3/6/2014 4:34:36 AM , Rating: 2
I believe that the principle of Conservation of Mass and Energy also applies to jobs. That is to say that jobs can neither be created or destroyed (relative to the population size)--that they only change form.

Robots doing assembly-line work may replace workers on the assembly line...but now require technicians to maintain and programmers to develop their execution routines. Mom and Pop stores dying off when Wal-Mart comes to town give rise to Mom and Pop stores selling on Amazon and Ebay. Don't mourn over job losses; instead, look towards the future with wonderment and optimism at what new jobs will develop.

As to the history of Radio Shack, as a kid in the 80's, it was THE place with the coolest stuff. Where Radio Shack missed its calling was If Radio Shack had envisioned the potential online--it could be that Newegg never even existed. with Best Buy...Radio Shack kept blindly (almost dogmatically) pushing ahead in the veins that its CEO's deemed best.

This is the 21st century. Expect to see a LOT of brick & mortar stores dying off. Expect to see a substantial increase in transportation and freight. There will be jobs...just different ones from those that existed before.

"I modded down, down, down, and the flames went higher." -- Sven Olsen
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