Radio Shack will close 1,100 stores in the U.S.

Posted On 05 Mar 2014
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Tag: , Radio Shack close up to 1, Radio Shack losses, Radio Shack share price

The electronics retailer Radio Shack announced plans to close up to 1,100 facilities, about one-fifth of which is nationwide.

The announcement was made on the occasion of the presentation of results of fiscal 2013, which ended with a loss of $ 400.2 million dollars, compared to the red of $ 139.4 million last year.

In the last quarter of the year, losses were $ 191.4 million, three times more than the $ 63.3 million the same period in 2012, according to the company explained in a statement.

The losses have been motivated primarily by a decline in sales (11.4% in 2013), while Radio Shack tries to change the concept to stop being a store of electronic components and devices and focus on the sale of equipment and personal accessories, most popular and commercially margin.

In this sense, the CEO of the company, Joseph Magnacca, said in the memo that the redesigned with new concept stores that are more than a hundred, have seen an increase in sales.

Radio Shack, based in Fort Worth (Texas), currently has around 4,300 stores in U.S. soil, and about 300 in Mexico and 1,000 franchised outlets worldwide.

Following the presentation of these results, shares of Radio Shack plummeted more than 23% in premarket the New York Stock Exchange (NYSE), which has dropped 10.53% in the last twelve months trading.

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