• Roughly 1,100 RadioShack Stores to Close Due to Lower than Expected Earnings

    It was announced on Tuesday that roughly 1,100 RadioShack stores will be closing due to a $400 million loss in 2013. RadioShack, one of Apple's many retail partners, could not adapt to the fast-changing consumer landscape. Competitor rivals including CompUSA, Circuit City and Tweeter Home Entertainment have already closed in the highly competitive electronic industry.

    According to The Wall Street Journal, shares of RadioShack have dropped 17% on Tuesday and lost $191.4 million in the last three months of the year, up from the $63.3 million they lost in the previous year. It was expected for RadioShack to hit $1.12 billion in sales for the December quarter but instead, earned $935.4 million totaling a 28% year-over drop.

    Joe Magnacca, CEO of RadioShack, stated, “within five miles of my home, I have eight RadioShack locations” highlighting the swarming distribution of stores. Slow sales of tablets, accessories, and phones were reported by RadioShack, which typically accounts for half of the retail’s business. The company chain once accommodated “do-it-yourself” devotees and was slow to assume mainstream consumer electronics.

    The company in recent years has tried offering tablets and smartphones at low prices including discounts for popular Apple iPhones. RadioShack, being Apple’s Retail Partner, was the nation’s second largest iPhone seller that physically carried the iPhones back in 2010. Unfortunately, even with limited-time discounts and aggressive price cuts, RadioShack seems to be unable to create revenue and in fact, may be the reason for the poor quarterly performance.

    According to Joe Magnacca, “simply put, we exceeded our organization’s capabilities by trying to do too much too quickly.”

    Source: The Wall Street Journal
    This article was originally published in forum thread: Roughly 1,100 RadioShack Stores to Close Due to Lower than Expected Earnings started by Akshay Masand View original post
    Comments 10 Comments
    1. kosher1's Avatar
      kosher1 -
      Add the ****** service you get and walla.
    1. Answer1o1's Avatar
      Answer1o1 -
      The real question is how is Radio Shack is still in business!?
    1. Eonhpi's Avatar
      Eonhpi -
      Never liked the high prices and crappy service doesn't surprise me
    1. CZroe's Avatar
      CZroe -
      It seems that they close two thirds of the stores every few years. How are there that many left to close?!
    1. bigboyz's Avatar
      bigboyz -
      I grew up with this store. When i saw the SuperBowl commercial, it reminded me that the place still existed. I mean who even goes in there? $35 for a 6' HDMI cable??? "Come on man!" Just become an online store and reduce your overpriced stock..that is all.
    1. luvmytj's Avatar
      luvmytj -
      I miss the Radio Shack from the old days. You could find any little part for your projects. Now your lucky to find what you need for projects but they have plenty of over priced electronics galore and uneducated sales people.
    1. steve-z17's Avatar
      steve-z17 -
      I hardly ever see anyone go into RadioShack near my house. All the stuff they sell is readily available in so many places (including online) now that I just don't see how they've continued to do business. So I can't really say I'm surprised.
    1. thetoothfairy's Avatar
      thetoothfairy -
      Got my first computer from Radio Shack..... And never went back!
    1. Bo's Avatar
      Bo -
      ^Same here, a TRS-80.
    1. thetoothfairy's Avatar
      thetoothfairy -
      Mine was Tandy lol
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