Radio Shack released their latest quarterly report today, and the news is not good. Sales were down nearly 20%, and as a result they lost about $191 million dollars in the last 3 months of 2013.
This is but the latest quarter with a poor financial report, and Radio Shack has decided to take drastic action. They’re going to be shutting down around 1,100 under-performing stores, leaving them with around 4,000 locations in the US.
According to Radio Shack CEO Joseph C. Magnacca, this comes as a result of a months-long study: “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.”
This is sad news. Radio Shack was a great company once; they were at the forefront of a number of breaking developments, including personal computers. RadioShack had one of the early commercially successful PCs, and for the longest time was a great source of electronics components. Unfortunately, they never really adapted to the big-box era, so when consumer electronics exploded Radio Shack was never really capable of competing against Best Buy and other chains that could offer a larger selection and cheaper prices.