Radio Shack, “the struggling consumer electronics retailer announced Tuesday that it plans to close up to 1,100 underperforming stores in the U.S., or about 26% of its current company-owned stores,” Patrick Seitz reports for Investor’s Business Daily.
Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles — location, area demographics, lease life and financial performance — in order to consolidate our store base into fewer locations while maintaining a strong presence in each market. “The result of that review is our plan to close up to 1,100 underperforming stores. We will continue to have a strong, unmatched presence across the U.S. with over 4,000 stores including over 900 dealer franchise locations. – RadioShack CEO Joseph Magnacca
“RadioShack’s retail network today includes about 4,300 company-operated stores in the U.S., 274 company-operated stores in Mexico, and about 950 dealer and other outlets worldwide, the Fort Worth, Texas-based company said Tuesday,” Seitz reports. “RadioShack announced the store closings along with its disappointing Q4 financial results. The retailer reported a loss of $191.4 million during the quarter, compared with a year-earlier loss of $63.3 million. On a per-share basis, RadioShack lost $1.46, much higher than the 14-cent loss expected by analysts polled by Thomson Reuters. RadioShack’s December quarter sales fell 28% year over year to $935.4 million. Wall Street was modeling for $1.12 billion in sales.”
“RadioShack stores have long been a target of comedians who have poked fun at its outdated image,” Seitz reports. “For instance, an April 2007 article by satirical news website the Onion was titled, “Even CEO Can’t Figure Out How RadioShack Still In Business.”
Read more in the full article here.
MacDailyNews Take: In what’s become a refrain for far too many years now: Good luck to all those affected.
