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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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A shell of its former self
By Windogg on 3/10/2014 12:48:08 PM , Rating: 2
As with many others, I have many fond memories of dad taking me to Radio Shack to pick up various parts to build or repair electronics. Their brand Realistic held some hidden gems of high quality rebrands. The folks that worked there knew the part you needed with a few questions.

"The Shack" lost me with two incidents. Today the folks there are the typical retail drones looking just to get by. One day I needed a fuse and resistor to repair an item. I might as well have asked for a flux capacitor as the 4 clerks standing around were clearly puzzled. Took 30 minutes of combing through unsorted trays to find what I needed.

Not only have they become a crappy "Best Buy Lite" but they also admittedly prey on those in a jam with obscenely marked commodity items. One night my mother in law needed an AC adapter. Got gouged close to $40 for the adapter and proper tip. Just a few years previously, $15 bought you a universal AC adapter with tips compatible with just about every device on the planet. Rip me off like that and my business goes elsewhere.

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