Today, while reporting its 2013 fourth quarter results RadioShack announced plans to close 1,100 of its 4,000 stores in a bid to stem losses. The parts drawer and the RC toys and the various different types of solder and breadboards. RadioShack. It is quickly dying.
RadioShack reported a loss of $191.4 million during this quarter, compared with a year-earlier loss of $63.3 million. Revenue declined 20% to just $935.4 million.
“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 C. Magnacca, RadioShack CEO. “Even in this environment, we’re continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility.”
The company is currently trying to rebrand its self from its former DIY self to what it calls, “Do It Together”. But RadioShack is on borrowed time.
RadioShack has long been a retailer without a soul. About 10 years ago it turned away from the then-dead DIY scene and started hawking cell phones. As a staple in the American mall, this kept the company afloat but clearly didn’t set the stage for long-term growth. The rise of Best Buy Mobile stores didn’t help this strategy either.
The current RadioShack is looking to be the portable electronics headquarters with an intense focus on products with a strong brand identity. The no-name RC toys do not have a spot under this retail plan and the parts drawer is a relic of a forgotten era.
The company’s brought on a former Walgreens executive to retool the branding and the stores. Under his helm, the stores look more modern and fresh and anything but a musty store that sells diodes and ham radios. But will RadioShack ever be the destination it once was? No.