updated 10:53 am EST, Tue March 4, 2014
Store closures stem from $191.4M quarterly loss, declining revenues
RadioShack will close up to 1,100 "underperforming" stores in the United States, as it attempts to prevent further losses, the company has revealed. As part of its fourth-quarter 2013 financial results, the retailer revealed the closure of roughly a fifth of its chain, which will leave the company with approximately 4,000 stores nationwide, including over 900 dealer franchise locations.
"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," advised RadioShack CEO Joseph Magnacca. He continued, stating "The result of that review is our plan to close up to 1,100 underperforming stores," and that the retailer will "continue to have a strong, unmatched presence across the US."
Speaker wall inside a RadioShack concept store
The closures come in the face of poor financial figures, with the company reporting a loss of $191.4 million for the quarter on declining revenues of $935.4 million.
Despite the closures, the company remains upbeat. It is continuing to make progress on a turnaround plan, seeing growing sales in its new concept stores, and apparently received a positive response to its "new brand positioning" dubbed "Do It Together," a branding scheme started via a Super Bowl commercial. "Without minimizing the challenges ahead, we have a detailed strategic path to profitability," advised Magnacca.