Tuesday, March 4, 2014

RadioShack To Close 1,100 Stores

Fort Worth-based electronics retailer RadioShack said this morning that it plans to cut up to 1,100 of its stores, saying that it saw a holiday season with lower store traffic, a "very soft" mobility marketplace, operational issues, to "intense promotional activity" in the consumer electronic space--all of which impacted the company. As a result, the company said it plans to close those underperforming stores but "maintain a strong presence" in the market. RadioShack said it will still have over 4,000 stores in the U.S. The news came as RadioShack reported net sales and operating revenues of only $935.4M, compared with $1.171.4M for the prior year, in its fiscal fourth quarter. For the year, the company reported revenues of $3.43 billion, compared with $3.83 billion last year. The count of stores is worse than expected; earlier rumors had placed the count of shutdowns at around 500 stores.