RadioShack shuttering 1,100 'underperforming' stores

RadioShack shuttering 1,100 'underperforming' stores

Summary: That still leaves RadioShack with more than 4,000 stores, including over 900 dealer franchise locations, nationwide.

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RadioShack is planning to close down approximately 1,100 "underperforming" stores nationwide soon.

The decision was announced amid the Texas company's fourth quarter earnings report, published before the opening bell on Tuesday.

That still leaves RadioShack with more than 4,000 stores, including over 900 dealer franchise locations, nationwide.

CEO Joseph C. Magnacca explained in the report, "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."

The electronics chain has been an experiencing a tumultous last few years as many consumers move online for their purchases, away from big box stores and smaller local shops (such as Radio Shack) alike.

In 2012, RadioShack started undergoing a major leadership change as Jim Gooch stepped down in September of that year. He was replaced by the former CEO of Walgreens, Magnacca, a few months later.

Last summer, Magnacca aimed to bring a new concept to the brick-and-mortar retailer with the hopes of making the "iconic brand relevant" once again.

Based on Tuesday's news and last quarter's earnings results, that vision has not been realized yet.

Nevertheless, Magnacca remained optimistic, defending that "our focus on the brand, our operations, and the in-store experience has been unfolding in parallel with a strategic review of our store footprint."

Topics: Hardware, E-Commerce, Tech Industry, SMBs

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13 comments
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  • What does "underperforming" mean?

    Does it mean "unprofitable", or does it mean "not profitable enough"?
    John L. Ries
  • They might as well be dead

    When was the last time you actually visited a RadioShack? It's so 1980s. :)
    Tiggster79
    • 1980's f'ing ruled!

      ...just sayin
      TrishaDishaWarEagle
  • What radio?

    I taught digital solid state electronics to scores of students in the late '80s and early '90s. Most of the board and components were purchased at Radio Shack. Today, they have all but eliminated the electronics in exchange for the gadgets that someone else designed and built. Some went on to become electronic experts for NASA, robotic engineers etc. Radio Shack could make money setting up evening and weekend classes for future engineers. They would rather sell a few batteries and cell phone attachments. Not for long now, though, as those stores which emptied out the electronic components for experimenters will now be empty as well.
    jjividen
    • They sell this now...

      http://www.arduino.cc

      Worth a trip just for that.
      msalzberg
    • I remember those days

      Got my first electronics kits from them as well as my first shortwave radio. That launched my interest in electrical engineering.

      Nowadays, I can't believe radio shack is still in business.

      You really think there is such a demand from experimenters? There are tons of better suppliers online.
      otaddy
  • R. S.

    I grew up going to Radio Shack to get electronics to build stuff and when I was in college electronics engineering in the 80's.
    Now if I go, they have no idea what I am asking for.
    They just point at the drawers and I go rummaging about.
    Still a repairman but R.S. is not on my list of places to get a part.
    MoeFugger
  • The ONLY reason Radio Shack still stands to this day is for connectors...

    cables and just in the last few years, smartphones. But their connector and cable pricing is so stratospheric (a standard two prong 120v electrical cable for 12 effing dollars that probably costs them 30 cents to produce!??) that they have driven everyone to Walmart, monoprice and other sources for their cable and connector needs.
    Playdrv4me
  • If the stores kept their inventory online, we'd still shop there

    Walmart is only a few blocks from me. But I go online first, to see if what they have in the store is in stock, to save time. I bet many others do the same thing. Surely Radio Shack could do that.

    All the big box retailers could do the same thing, and I bet you'd see sales pick up. Radio Shack in particular declined because of the poor quality of its stuff, and as time passed, the low quality of its help. By contrast, I'll go to Ace Hardware over the other hardware stores, because I know the staff actually know something about hardware.

    I miss Radio Shack. Used to go there all the time. Got my first bag phone there, they fixed my GRiD laptops (which still work, thank you), and got friendly with the franchise owners. That was in Chitown, 20 years ago. Sigh.
    brainout
    • Who goes to a store

      Faster and cheaper to order online. My time is too valuable to drive to a store and hope they have what I need.
      otaddy
  • Radio Shack is putting itself out of business

    At one time, Radio Shack carried a wide variety of products and parts, at competitive prices. Now, their selection is quite limited and most of what they have can be bought at Wal-Mart, or other places for less.
    gtaglia@...
  • Prices

    If RS is losing business it's because they are so overpriced on the things they sell. I can buy name brand rechargeable batteries anywhere from $2 to $5 (or more) cheaper from places like Walmart. RS is proud of their batteries and want you to put their employees kids through college by buying them.....
    Tinman57
  • Impressions

    Upon entering one of these stores you get the impression that you can buy this crap somewhere else for less. That impression builds the longer you stay and look at the stuff you know. Businesses have to learn that you cannot insult the buyer's intelligence and stay in business. We're not here to be robbed.
    trm1945