RadioShack reported its fourth quarter earnings today, and revealed that it plans to close twice as many stores as initially forecast. The company said slow foot traffic, heavy promotions, and weak smartphone sales during the holiday season led to a quarterly loss of $191.4 million. The company had warned it would close about 500 stores to cut costs, but has now doubled that number to 1,100. The closures will leave RadioShack with about 4,000 stores still open in the U.S. RadioShack is in the process of updating both its image and its sales strategy with a focus on electronic entertainment devices. It sells devices from AT&T, Sprint, and Verizon Wireless.
The biggest issue is the loss of the Sprint Kiosks, Sam's Club Kiosks, and finally Target Mobile is the reason why they are now suffering. Those operations made Radioshack the largest cell phone dealer in the US. Now they are down to their core retail stores and that is not where they want to be. If they had prepared better and retooled and remarketed their stores before, when they had many streams of revenue, this wouldn't be the disaster it is now. Hope they don't close the one next to my house. I never know when I will need some rosin core solder! Lol
I managed one of the SCKs for years. The stores in my district were all profitable. The problem was Walmart Inc's basic intention was only to have them there to get the wireless up and running with a customer base. When the contract was up, all we got... (continues)