RadioShack to Close as Many as 1,100 Stores

RadioShack to Close as Many as 1,100 Stores

Up to 20 percent of all locations will close their doors forever.

RadioShack Store 3x3

Despite its buzzworthy Super Bowl commercial, RadioShack will be closing up to 1,100 of its 4,500 corporate-owned locations in the coming months.

According to the Wall Street Journal, the closings are directly tied to poor holiday sales, which led to a total loss of $400 million for RadioShack in 2013.

No specific stores have been mentioned yet, but RadioShack's 1,000 franchisee-owned locations should be left unscathed.

While the total closing could hit 1,100 stores (up from 500 stores a month ago), the number could be smaller, depending on how negotiations go with retail landlords. Some stores on the chopping block could be saved if lower rent terms are negotiated, but "overcrowing" does seem to be a problem. A quick search on the company site shows 8 locations within 5-6 miles of my West LA apartment, so saturation is definitely part of the problem.

Along with store closings, RadioShack plans on whittling down its in-store offerings, reducing the number of brands and gadgets it offers while still catering to the DIY crowd.

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Maybe if they had a better selection of gifty products they wouldn't be in this mess. Even during the holiday season, my local radioshack had maybe four TVs, to save space for shelf after shelf of audio adapters and cables.

P.S. Thanks

If their prices on everything weren't so high and if their sales people could help the non-tech savvy customers find a that funny adapter cable instead of just being experts on cell plans maybe they'd be better off. Radio Shack, Best Buy, and all those other big box stores need to realize online retailers are undercutting them for a reason. Tech noobs are asking their cousin, niece, or stepson and that person is buying whatever they need for dirt cheap on amazon, monoprice, or ebay.

These execs need to stop worrying about buying their second yacht and start treating the employees better than pieces of equipment, educate them on the services and products, pay them better, and stop marking up all their crap in an age where you can buy a premium 15' HDMI cable online and get it to your door in 3 days for half the price of the brick and mortar store's price. It won't happen since the execs and investors are so short-sighted they'll try anything but taking a profit cut for a couple years to rebuild the company's reputation. I would like to be able to buy things in town, but I'd rather pay less for the same or better quality and wait than to have someone who has little understanding of what they're selling trying to sell me $100 1 foot monster cables, 3D TVs, and loyalty card memberships that only benefit me if the store is the only place around for 50 miles.

I can't even remember the last time I bought something at Radioshack. Everytime I go there looking for something, they either don't have it, or it's horribly overpriced. I can see why they are losing money. The DIY crowd is using the iternet rather than use Radioshack.

no radioshack stores in my country, so i dont know how popular it actually is or anything, but i was under impression it was doing quite well, what with people saying how full it was during christmas and everything. oh well, looks like retain shops are dwindling all over. It looks like online sales are having an impact on a limited demand and pushing less efficient models out slowly.
Altrough admittedly i still use radioshack-esque shops here. mostly for things like when i needed a fridge and the like. computer/tv parts its all online now really.

porous_shield:
I can't even remember the last time I bought something at Radioshack. Everytime I go there looking for something, they either don't have it, or it's horribly overpriced. I can see why they are losing money. The DIY crowd is using the iternet rather than use Radioshack.

Exactly. I stopped going to Radioshack because every time I need an adapter or some sort of small component, they don't have it. They went from being a great place for small electronics work to being another generic store you could walk in to to buy another smartphone.

 

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