RadioShack to Close Hundreds of Stores

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.
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the remodeling of 100 stores in an attempt to breath fresh air into a company that many analysts and consumers consider outdated.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.


  • 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.

Comments are closed.