Radio Shack to close 1,100 stores

In a move that no doubt breaks the hearts of technologists everywhere, U.S. electronics retail chain Radio Shack has announced it will be closing nearly 20% of its stores (1,100) in hopes of turning around the company’s declining fortunes. 

Last year, the firm reported a loss of $400.2 million; up from $139.4 million a year prior. A good portion of the company’s troubles can be pointed at growing competition, mostly in the online sector. Sales fell 10% last year, with revenue down 20% in the fourth quarter (during the holiday season).

“Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace, and a few operational issues,” said Joseph Magnacca, chief executive of Radio Shack, in a statement.

To address these issues, Radio Shack has taken a couple of steps to restructure its business, which includes revamping its roster of products and improving the efficiency of its operations. One of the things the company also said it would be looking into was the performance and sustainability of its stores over the last few months.

“We have undertaken a comprehensive review of our portfolio from many angles — location, area demographics, lease life, and financial performance,” the report stated at the time, before adding that the company would be looking into consolidating its store base “into fewer locations while maintaining a strong presence in each market.”

The location of store closures and total jobs lost were not revealed.

Story via BBC