RadioShack to Close Hundreds of Stores

An exterior shot of a Radio Shack concept store in New York City. (CNN)

An exterior shot of a Radio Shack concept store in New York City. (CNN)

NEW YORK, New York – RadioShack is failing to reboot.

The struggling retailer said Tuesday that it plans to shutter 200 more stores, a further sign of the exodus from brick and mortar electronic shops.

Shares tumbled over 9% after the company reported a quarterly loss that was twice as bad as Wall Street expected.

The stock is down more than 45% this year and has lost 90% of its value over the last five years. At roughly $1.42 per share, it’s tinkering in penny stock territory.

RadioShack CEO Joseph C. Magnacca blamed an industry-wide downturn in consumer electronics and weak demand for the current slate of mobile handset products.

Revenue was down 13% compared to a year ago.

RadioShack’s problems run deep. The company already closed 22 stores in the latest fiscal year.

Still, the retailer isn’t giving up without a fight. Its turnaround strategy includes brand partnerships and the remodeling of 100 stores in an attempt to breath fresh air into a company that many analysts and consumers consider outdated.

The company hasn’t exactly denied the perceptions that it’s out of touch with the modern retail world. It ran a Superbowl commercial poking fun of itself by featuring a 1980s theme.

The ad boosted the stock temporarily, but doesn’t appear to have had a meaningful impact on the company’s bottom line.

Of course, RadioShack isn’t the only consumer electronics chain to suffer. Best Buy shares are down over 26% over the last year, despite its own attempts as a turnaround.

3 comments

  • Ishmale Whale

    Fort Dodge and Webster City Iowa both lost their Radio Shack stores. My issue with Radio Shack was when they stopped carrying electronic components and parts. I do electronic and electrical repair, and Radio Shack used to have walls of components. They reduced it to a small file cabinet and became an over priced cell phone and consumer electronics seller. Customer wait time to pay for something was 15+ min when the sole employee was busy activating a newly purchased cell phone.
    The name “Radio Shack” used to mean electronic components, do it yourself electronic projects, and literally all the parts needed to build a radio.

  • System Nuked

    @Ishmale Whale. You hit the nail of the head. It has been years since I have been in a Radioshack. Most of the staff has little knowledge on what is sold in the stores and I get tried of blank stares or hearing an employee repeat the same sales pitch over and over.

  • Jamie Goforth

    By far the biggest reason for the decline in their business, is the simple fact that smartphones have replaced most of the devices RS sold. Everyone now carries a telephone which is also a camera & video, GPS, internet, alarm clock, planner, music player, flashlight, etc — the very divices one of those stores carried. It’s really just as simple as that.

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