RadioShack to Shutter 1,100 Stores

The shopfront of a RadioShack store on Broadway, New York.
Alamy
By CANDICE CHOI
and MICHELLE CHAPMAN


NEW YORK -- RadioShack said it plans to close up to 1,100 stores in the U.S. and reported a wider quarterly loss after a disappointing holiday season.

RadioShack (RSH) stock tumbled more than 12 percent in morning trading Tuesday.

CEO Joseph Magnacca said in statement that the store closings would leave RadioShack with more than 4,000 U.S. stores, including more than 900 dealer franchise locations. The company didn't immediately identify which stores will be closed or how many jobs would be affected.

A call to the company, based in Fort Worth, Texas, wasn't immediately returned.

The closures represent just the latest setback for RadioShack, which has been struggling to update its image and compete with the rise of online retailers in recent years. In addition to slashing costs and shuffling management, RadioShack has been renovating its stores with a more modern look.

The company ran an ad during the Super Bowl poking fun at its own outdated image. The spot showed characters from the 1980s including Alf, Chucky, Hulk Hogan and Teen Wolf ransacking a RadioShack store.

The efforts have yet to take hold, however.
On Tuesday, Magnacca said the latest quarter's performance was hurt by a slowdown in customer traffic, increased promotional activity, as well as "a few operational issues."

Sales at stores open at least a year -- a key indicator of a retailer's health -- sank 19 percent.

The company said that the stores targeted for closures are being selected based on location, area demographics, lease duration and financial performance.

For the three months ended Dec. 31, RadioShack lost $191.4 million, or $1.90 a share. That compares with a loss of $63.3 million, or 63 cents a share, a year earlier. Excluding certain items, the company lost $1.29 a share. Analysts surveyed by FactSet expected a loss of 16 cents a share.

Revenue declined to $935.4 million from $1.17 billion. Wall Street was looking for higher revenue of $1.12 billion.

RadioShack reported a full-year loss of $400.2 million, or $3.97 a share. In the prior year it lost $139.4 million, or $1.39 a share. Its adjusted loss was $3.04 a share. Annual revenue declined 10 percent to $3.43 billion from $3.83 billion.


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vulturesmotto

Dozens of companies are in the same position. If they would have given $5,000 per household with a US citizen household under 50 year old head of household, and $10,000 for every household with a US citizen head of household 50 and up (as I said in 2008), we would not be 7 or 8 trillion more in debt and the country would be booming !! Add to that, President Obama refuses to allow any new oil production which is the trigger for the global economic mess. Ah, but this administration is all about their own greed and wiping their feet on the US society. Instead of an average of $2500 per person, we now owe an average of about $52,000 per person. Only the administration and cronies are making out.....

March 06 2014 at 4:31 PM Report abuse rate up rate down Reply
bootsnchaps60

Radio Shack was a great place to go decades ago when electronics were made to last and items were repairable. Employees tended to have some knowledge of how to fix things. When electronics became disposable Radio Shack stocked those too at a much higher price. The employees became cashiers who seem to know very little about fixing anything. Radio Shack was also right there with Sears and JCPenny having to be in every mall and center. There has already been one refresh of RS which didn't make much difference. Co-locating with Best Buy or a big box office supply or Sears/Kmart might make more sense than trying to be freestanding. Perhaps they could co-locate with Darden restaurants and create Lobster Garden Shack or Red Olive Radio.

March 04 2014 at 1:06 PM Report abuse rate up rate down Reply