Struggling Radio Shack plans store closures
FORT WORTH, Texas – Radio Shack on Tuesday announced plans to close as many as 200 stores this year, but it remains to be seen whether locations in the Mid-Ohio Valley will be affected.
In a release posted on its website, the company says operating losses for the first quarter of 2014 were $81 million compared to $10.3 million last year. Consolidated gross profit was $268.7 million, down from $340.9 million the previous year.
In the release, Joseph C. Magnacca, Radio Shack’s chief executive officer, attributed the first quarter performance in part to “an industry-wide decline in consumer electronics” and “lackluster consumer interest” in mobile communication products, coupled with increased promotional activity in the wireless arena.
He notes the company is making progress in its turnaround strategy, executing a remodeling initiative for 100 stores and driving a new “Do It Together” brand campaign to highlight the knowledge of store associates.
“We are also successfully reducing our costs, with a particular focus on removing expenses that do not impact the customer experience, and have taken steps to lower our corporate headcount, leverage technology and reduce discretionary expenses,” Magnacca says in the release. “Our entire team is focused on executing our vision, adapting to the environment, managing our balance sheet and driving sustainable change.”
The release says the stores to be closed will be determined based on location, area demographics, lease life and financial performance.
An emailed message to the company was not returned Tuesday.
Employees at Radio Shack locations in the Grand Central Mall in Vienna and the Wal-Mart shopping plaza in Marietta said Tuesday they had not received word about which stores would be affected.