Credit: RadioShack
Could it be the end for one of the best-known electronics retailers in the country? Eh, maybe/maybe not.
Apparently, due to lousy fourth-quarter earnings, RadioShack has announced it would be closing roughly 1,100 underperforming stores, which equates to about 20% of store locations across the U.S. This will leave around 4,000 RadioShack locations in America, which upsets me only in the superficial sense that this could contribute to the death of the American mall. (As a former mallrat, this cannot abide)
Revenue and sales were down to $935.4 million in the fourth quarter. When compared to last year’s $1,171.4 million earnings, this represents a decline of 20% decline. In the search for something to blame for the dismal sales figures, RadioShack is pointing the finger at its mobile phone business, as sales have been down across the board.
But the company is remaining optimistic.
“Even in this environment, we’re continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility,” said CEO Joseph C. Magnacca in a statement.
And hey, why not remain optimistic? It’s not like they’re Blockbuster or the print industry and are facing the oncoming obsolescence of their product. From all appearances, people still want cameras, smartphones, RC race cars and batteries to put inside them. RadioShack just needs to convince people it’s in their best interest to get it from them. Of course, this is easier said than done. But if that fantastic Super Bowl ad doesn’t help awareness, I have no idea what will.
Via: RadioShack
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