Radio Shack to Close 1,100 Stores

Your Radio Shack to Close 1,100 Stores Retail grandfather's electronics store is about to go through a drastic downsizing.

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.

Engadget

 

Nate Hoffelder

View posts by Nate Hoffelder
Nate Hoffelder is the founder and editor of The Digital Reader: He's here to chew bubble gum and fix broken websites, and he is all out of bubble gum. He has been blogging about indie authors since 2010 while learning new tech skills at the drop of a hat. He fixes author sites, and shares what he learns on The Digital Reader's blog. In his spare time, he fosters dogs for A Forever Home, a local rescue group.

7 Comments

  1. Paul4 March, 2014

    They relied too much recently on mobile phone contracts to make money. That was a risky thing to do.

    Reply
  2. Patrick Perez4 March, 2014

    FYI, the headline has a bonus zero. I believe it is 1100 stores closing.

    Reply
    1. Nate Hoffelder4 March, 2014

      Fixed it, thanks!

      Reply
  3. Scott Tuttle4 March, 2014

    side effect of staffing their stores with people ignorant about electronics plus online competition.

    Reply
  4. Thomas5 March, 2014

    I’m really surprised that they’ve been as successful as they have been. I expected them to collapse when the electronics hobbyist market did. As it stands, they’re pretty much a Walmart electronics department in a separate building.

    Reply
    1. Nate Hoffelder5 March, 2014

      Yes, it is puzzling that Radio Shack outlasted Circuit City and CompUSA.

      Reply
      1. fjtorres5 March, 2014

        Whatever their failings, they had/have(?) a better inventory management system.
        CompUSA (classic) had an inventory system that reported products as out of stock (with no pricing info) that were sitting on shelves by the dozen and insisted they had stock of products nobody could find after 20 minute searches.

        Reply

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