RadioShack closing 1,100 stores

[Smokey]

http://images.taubman.com/www.shopnorthlake.com/asset/get/36718

RadioShack said Tuesday that it plans to close up to 1,100 stores, or about a fifth of its U.S. locations. CEO Joseph Magnacca said the closings would leave the company with more than 4,000 U.S. stores. That's still far more than Best Buy, which has roughly 1,400 U.S. locations.

The closings represent just the latest setback for RadioShack, which is fighting to update its image and compete with the rise of online and discount retailers. In addition to slashing costs and shuffling management, RadioShack has been renovating its stores with a more modern look.'
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 closings are being selected based on location, area demographics, lease duration and financial performance.

RadioShack reported a full-year loss of $400.2 million and in the prior year it lost $139.4 million. Annual revenue declined 10 percent to $3.43 billion from $3.83 billion.

RadioShack closing 1,100 stores as troubles grow: Associated Press Business News - MSN Money (http://money.msn.com/business-news/article.aspx?feed=AP&date=20140304&id=17402356)

[StevenSurprenant]

There's no surprise there. I'm just surprised that it's lasted this long.

The one thing that really stands out about this company is that they can't keep employees. Almost every time I go there there are all new people,... new managers and new sales people. This tells me that there is a serious problem with upper management (corporate). It's been this way for as long as I've know this company and that spans quite a few years.

[Worf101]

I agree with Steve... I'm REALLY suprised it took this long. A classic example of a venerable "institution" unable to adapt or change with the time. Stickin' you head in the sand like an ostrich only gets you bit in the butt.

Worf

[Feanor]

Possibly of interest to some, is that Radio Shack existed in Canada for many years, being owned by Tandy or InterTAN. The successor to Radio Shack here, in some cases occupying original Radio Shack locations is The Source which itself has had some changes of ownership. This quote from Wiki ...


The Source (French: La Source), (legal name The Source (Bell) Electronics Inc.) formerly known as RadioShack and later as The Source by Circuit City, is a Canadian electronics retailer with over 700 locations across Canada. Originally part of the American RadioShack chain, The Source is now owned by Bell Canada, which purchased the assets of InterTAN from bankrupt parent U.S. retailer Circuit City Stores in 2009. The company is a unit of 4458729 Canada Inc. and is based in Barrie, Ontario.

However The Source has never carried the range of products that Radio Shack does.

[Mr Peabody]

I think it was a big mistake for RS to drop their own name brand products. Look how Wal-Mart or Costco have a name brand unit but with a special model number just for them, RS had it's own brand, what were they thinking. They have also over the years been the place to find unique items you couldn't much get any where else, or, at least walk off the street and do it. I think a lot of us started out with a Realistic piece. I also agree with the employee statements. In a store like RS you have to have employees that know what they sell, what it is and where to find it. It's a shame though, stores like that are icons. Felt the same with Western Auto.

As a side note to what I wrote, remember when department stores either put their name on electronics or had their own brand, like JCPenney had MCS? My first hi fi VCR was JCPenney made by Hatachi.

[Smokey]

I think a lot of us started out with a Realistic piece.


Radioshack's Realistic brand bring back alot of good memories. They had quite few audio component selections as well as good selection in radio including ham and shortwave.

I still have one of their ham/shortwave radio Realistic DX-160 made in late 70s in my closet. Its beautiful :)

http://radiotimeline.com/ar-realistic_dx160_1.jpg