RadioShack To Close About 1,100 stores Due To Poor Performance
RadioShack will close nearly 1,100 stores that are not performing up to expectations. The move from the Fort Worth-based company comes on the news that its fourth-quarter store sales dropped 19 percent from this time last year.
Chief Executive Officer of RadioShack Joseph C. Magnacca said the company’s fourth quarter financial results were mainly due to a holiday season that showed a reduction in store traffic, soft mobility market, promotional activity especially in the consumer electronics sector and little operational problems.
The fourth-quarter revenue for RadioShack fell to $935.4 million from $1.2 billion this time last year. The company reported it had a net loss of over $191 million for its fourth-quarter, making it an eight consecutive quarterly loss. It lost just $63.4 million last year.
RadioShack, like the many other brick and mortar electronics stores, are looking for ways to reverse the downward trend of foot traffic to stores. During the 2013 holiday shopping season, the company offered steep discounts as incentives to bring customers to the store. It also tried to rebrand itself with advertisements during the Super Bowl.
Despite the nearly 1,100 store closures on the chopping block, RadioShack will have over 4,000 stores across the United States.
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