Tuesday, March 4, 2014

RadioShack To Close Up To 1,100 Stores

FORT WORTH, Texas -- RadioShack Corporation (NYSE: RSH) announced today during its fourth quarter earnings report that the electronics retailer will close up to 1,100 underperforming stores.

RadioShack's total net sales and operating revenues were $935.4 million, compared to $1,171.4 million last year.  Comparable store sales were down 19% driven by traffic declines and soft performance in the mobility business. 

"Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues," Joseph C. Magnacca, chief executive officer, said. "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. 

"Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles – location, area demographics, lease life and financial performance – in order to consolidate our store base into fewer locations while maintaining a strong presence in each market," Magnacca said.  "The result of that review is our plan to close up to 1,100 underperforming stores."