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RadioShack Announces Plans to Close Low Performing Stores
Headquartered in Fort Worth, Texas, the RadioShack Corporation is a franchise of electronics retail stores in the United States, as well as parts of Europe, South America and Africa.
The RadioShack Corporation has announced that it plans to close as many as 1,100 of its lower-performing stores, which are almost 20% of its 5,200 US locations including 900 franchise stores.
RadioShack Corp. has reported that its fourth-quarter store sales were down 19% compared to the electronic companies last year’s sales. Money CNN has reported that Radio Shack has also publicly acknowledged that its current stores are out of date and in need of a massive overhaul. It has also been reported , according to the L.A. Times, that RadioShack is facing a net loss of $191.4 million for the fourth-quarter, its eighth consecutive quarterly loss. That compares to a net loss of $63.3 million last year.
Joseph C. Magnacca, RadioShack’s chief executive reported that “Our fourth-quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues,” according to the L.A. Times. This year’s RadioShack’s Super Bowl ad showing how cool and hip it is may have come a little too late.
Image credit: WikipediaRadioShack Announces Plans to Close Low Performing Stores by Jaan