RadioShack to close hundreds of stores
NEW YORK, Ny — Radio Shack is failing to reboot.
The struggling retailer said Tuesday that it plans to shutter 200 more stores, a further sign of the exodus from brick and mortar electronic shops.
Shares tumbled over 9% after the company reported a quarterly loss that was twice as bad as Wall Street expected.
The stock is down more than 45% this year and has lost 90% of its value over the last five years. At roughly $1.42 per share, it’s tinkering in penny stock territory.
RadioShack CEO Joseph C. Magnacca blamed an industry-wide downturn in consumer electronics and weak demand for the current slate of mobile handset products.
Revenue was down 13% compared to a year ago.
RadioShack’s problems run deep. The company already closed 22 stores in the latest fiscal year.
Still, the retailer isn’t giving up without a fight. Its turnaround strategy includes brand partnerships and the remodeling of 100 stores in an attempt to breath fresh air into a company that many analysts and consumers consider outdated.
The company hasn’t exactly denied the perceptions that it’s out of touch with the modern retail world. It ran a Superbowl commercial poking fun of itself by featuring a 1980s theme.
The ad boosted the stock temporarily, but doesn’t appear to have had a meaningful impact on the company’s bottom line.
Of course, RadioShack isn’t the only consumer electronics chain to suffer. Best Buy share are down over 26% over the last year, despite its own attempts as a turnaround.