Radioshack Bleeding, Will Close 1 in 5 Stores
Company announces dismal holiday sales numbers
By Kevin Spak, Newser User
Posted Mar 4, 2014 9:55 AM CST
One of Radioshack's new 'concept stores' is seen in this October promotional photo.   (PRNewsFoto/RadioShack Corporation)

(Newser) – Radioshack released an absolutely grisly quarterly report today, and on its heels came plans to close as many as 1,100 stores—or about 20% of its total, the Wall Street Journal reports. The company said it had lost $191.4 million over the holiday quarter, a huge jump from its $63.3 million loss a year earlier, on a 20% dip in revenue. Overall, it lost $400 million on the year. While some store closings had been expected, the actual number is more than twice the 500 indicated in previous reports.

Radioshack blamed the results on lower shopper traffic, lower phone and tablet sales, aggressive sales at its competitors, and "a few operational issues." Its stock plunged 28% in early trading. "The company's results were much worse than we anticipated, and cast serious doubt on RadioShack's long-term viability in our opinion," one analyst tells Reuters.

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Showing 3 of 26 comments
Box1Car
Mar 5, 2014 1:14 PM CST
Welcome to the downside of internet sales> the demise of birick & mortar stores wherein no one's able to see or try out products in real time hands on- next up is Best Buy to go the way of Circuit City which is No Ma's
ddhartma
Mar 5, 2014 10:35 AM CST
Back in the day when fixing it yourself was a viable option in electronics Radio Shack was a great place to find what you needed. But today most of our electronics is too advanced for the average consumer to work on, is so low cost that replacement is more cost effective, and the rapidity of obsolescence is such that you would actually be working on something that was at least a generation or two behind the current state-of-the-art. Their need has gone the way of the buggy whip.
Dave0
Mar 5, 2014 10:01 AM CST
Most everything they sell is like 2 - 4 times more expensive than any place else! Ebay is my new 'gadget store'...I save a fortune!