Radio Shack announced today that it will close up to 1,100 of its underperforming stores after the electronics retailer said holiday sales last year "were driven by lower store traffic, intense promotional activity particularly in consumer electronics and a very soft mobility marketplace."
Radio Shack CEO Joseph C. Magnacca said the company has conducted a review of its retail sites and will focus on 4,000 remaining stores and 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," Magnacca said in an earnings announcement today. "The result of that review is our plan to close up to 1,100 underperforming stores."
Radio Shack did not immediately identify the location or timing for the stores to be closed. Radio Shack operates stores in Brainerd, Hixson, Red Bank, East Ridge, Fort Oglethorpe and Cleveland, Tenn., in the Chattanooga region.
Radio Shack reported a net loss of $400.2 million, or $3.82 per share, on sales of $3.4 billion for all of 2013. Company sales last year were down 10.4 percent from the previous year.
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