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RadioShack To Close Up To 1,100 Stores; Same-Sales Drop 19 Pct
FoxBusiness.com ^ | 3/4/2014 | Reuters

Posted on 03/04/2014 6:06:03 AM PST by mykroar

Struggling retailer RadioShack Corp reported a wider quarterly loss on Tuesday and said it will close up to 1,100 U.S. stores after a huge drop in sales over the holidays, sending the stock down more than 15 percent.

Sales at the Fort Worth, Texas-based chain have been in free fall amid executive departures, tough competition and an image problem. Despite its ubiquitous presence in the United States, analysts say it has not done enough to transform itself into a destination for mobile phone shoppers or become hip enough to woo younger shoppers.

Its net loss widened to $191.4 million, or $1.90 a share, in the fourth quarter, from $63.3 million, or 63 cents, a year earlier.

Sales fell to $935.4 million in the quarter covering the all-important holiday season, from $1.17 billion in the year-ago period. Analysts, on average, looked for sales of $1.12 billion, according to Thomson Reuters I/B/E/S.

Sales at stores open at least a year fell 19 percent on weak customer traffic.

Chief Executive Officer Joe Magnacca, who took the helm in February 2013, has said he expected the turnaround to take several quarters.

The stock fell 15.4 percent to $2.30 in premarket trade.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bhoeconomy; closing; electronics; radio; radioshack; sales; shack
Not sure this is a huge surprise - the ones around me are never busy. Since they've decimated their old parts section they used to have - it's mostly just cell phones and junk (IMO).
1 posted on 03/04/2014 6:06:04 AM PST by mykroar
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To: mykroar
Thank goodness for this Preezy Pajama Boy recovery. Otherwise Radio Shack might've had to close 1200 stores.

Preezy With A Limp saved 100 Radio Shack stores!

2 posted on 03/04/2014 6:10:46 AM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: mykroar

Part of the problem is the name itself. Who buys radios anymore? They should have changed that long ago.


3 posted on 03/04/2014 6:12:52 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: mykroar

Radioshack has been useless for years. They sell WAY overpriced store brand junk. They could buy all of their inventory from Newegg, put it in stock with a markup, and it would STILL be less expensive than the products they sell now. They might even turn a profit by doing so, but with tiny margins.


4 posted on 03/04/2014 6:13:56 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: mykroar

I learned a long time ago to avoid disappointment by never spending more than $3 at a time at Chateau Radio


5 posted on 03/04/2014 6:14:23 AM PST by muir_redwoods (When I first read it, " Atlas Shrugged" was fiction)
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To: mykroar

“Not sure this is a huge surprise - the ones around me are never busy. Since they’ve decimated their old parts section they used to have - it’s mostly just cell phones and junk

And their service is horrible, they don’t seem to understand that they have to compete with both WalMart and Online prices.


6 posted on 03/04/2014 6:17:08 AM PST by The_Republic_Of_Maine (Be kept informed on Maine's secession, sign up at freemaine@hushmail.com)
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To: mykroar
...it has not done enough to transform itself into a destination for mobile phone shoppers or become hip enough...

That is the reverse of Radio Shack's problem. They will never compete as a "Cellphone Fashion Boutique". Best Buy has other stuff to look at when you are shopping for a phone, Mall Kiosks are cheaper to run for cellphone "hip fashion accessories" and Amazon & Amazon Prime will get you the same phone at a better price within 2 days.

Radio Shack has abandoned it's roots as a source of parts & supplies for the entry level electronic experimenter. Maybe if they added 3D printer kits, Raspberry Pi's, etc and moved out of the high rent district at the Mall and back to neighborhood strip mall stores they could re-establish their niche and unique brand identity.

7 posted on 03/04/2014 6:21:30 AM PST by BwanaNdege
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To: mykroar

It used to be an electronic nerd paradise. Now, it is just an overpriced junk store. I used to buy hobbyist shortwave radio stuff there. Now, I get my stuff on the Interwebz.


8 posted on 03/04/2014 6:21:41 AM PST by 3Fingas (Sons and Daughters for Freedom and Rededication to the Principles of the U.S. Constitution)
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To: The_Republic_Of_Maine

Just watch..they’ll announce a merger with JC Penny


9 posted on 03/04/2014 6:24:08 AM PST by ken5050 (I fear a world run by adults who were never spanked as kids and got trophies just for participating)
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To: BwanaNdege
Maybe if they added 3D printer kits,

They actually offer a 3D printer online.
10 posted on 03/04/2014 6:25:28 AM PST by BikerJoe
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To: 3Fingas

Oh where will we be able to buy raspberry and plum colored AM transistor radios?


11 posted on 03/04/2014 6:27:06 AM PST by Buckeye McFrog
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To: mykroar

Radio Shack is completely useless. If they wanted to sell retail phone crap to the low info voters, they should have had the guts to change their name 15 years ago.

There is no reason to go to a Radio Shack.


12 posted on 03/04/2014 6:28:34 AM PST by ecomcon
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To: mykroar

Radio Shack saved my tookus when the wallwart for my previous modem unexpectedly shattered. They had me fixed up with a universal adapter and the right tip in no time, including letting me test in store with a spare modem of the same type to be sure it fit and didn’t start smoking.

Still, it’s not the first line for anything, it’s where you go when you need a cable or fan or plug and you can’t get safely online to go to Newegg or wait for something to ship...


13 posted on 03/04/2014 6:31:49 AM PST by Fire_on_High (RIP City of Heroes and Paragon Studios, victim of the Obamaconomy.)
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To: BwanaNdege
Radio Shack has abandoned it's roots as a source of parts & supplies for the entry level electronic experimenter. Maybe if they added 3D printer kits, Raspberry Pi's, etc and moved out of the high rent district at the Mall and back to neighborhood strip mall stores they could re-establish their niche and unique brand identity.

It's their only play. Then again, it's so easy to order exactly what you want from Digikey, that seems a doomed path as well.

Fight the Free Sh☭t Nation

14 posted on 03/04/2014 6:32:14 AM PST by Mycroft Holmes (<= Mash name for HTML Xampp PHP C JavaScript primer. Programming for everyone.)
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To: mykroar
it has not done enough to transform itself into a destination for mobile phone shoppers or become hip enough to woo younger shoppers.

And all this time, I thought it was because of the cheap chinese remote control crap they have been selling.

Seriously, Radio Shack was once the destination of many hobbyists, for dozens of projects.

I challenge an electronics buff to find more than 10 percent of their needs in any Radio Shack, now.

I can't even find a decent key-controlled switch.

But they have 10,000 versions of one damned phone that they have managed to price twice as much as anyone else.

I think they did it to themselves. They have been in decline for years.

15 posted on 03/04/2014 6:32:32 AM PST by OldSmaj (I am an avowed enemy of islam and obama is a damned fool and traitor. Questions?)
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To: mykroar

I’ve been doing electrical/electronic work for 30 years. Radio Shack is a terrible terrible source.


16 posted on 03/04/2014 6:33:46 AM PST by ryan71 (The Partisans)
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To: mykroar
Can I have your phone number?
And your Zip code?
And your email address?

There's a reason Radio Shack is going to die, and I hope Sears follow it.

17 posted on 03/04/2014 6:38:06 AM PST by real saxophonist (More Cowbell.)
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To: OldSmaj
Last time I was in a Radio Shack was in the year 2000. I walked in around 4:30 PM and the sole employee was delighted to see me. We got to talking, and I was the only person who'd been in that store all day. He said he'd hate to lose his job, but he couldn't see any reason why that particular store was even open. He'd had days where no one came into store. That was 14 years ago. I can't imagine it's improved. I think Radio Shack will very soon be joining the list of defunct American retailers.
18 posted on 03/04/2014 6:38:10 AM PST by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: mykroar
They dropped hobby electronics in favor of walls full of pink cell phone covers.
In each of my most recent 10 visits to a RS over the last years, I walked away without anything useful.

19 posted on 03/04/2014 6:39:00 AM PST by BitWielder1 (Corporate Profits are better than Government Waste)
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To: real saxophonist
Can I have your phone number?
And your Zip code?
And your email address?


Why don't I just give you a map and GPS coordinates for the pirate radio transmitter I'm building?


20 posted on 03/04/2014 6:41:01 AM PST by Buckeye McFrog
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To: mykroar

How can this be? The economy is “recovering” at 3%!


21 posted on 03/04/2014 6:41:03 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: AnAmericanAbroad
I can't imagine it's improved.

It hasn't.

Well, to be honest, they regularly replace their cell phone cover display racks and update their Hello Kitty ipad covers.

22 posted on 03/04/2014 6:49:50 AM PST by OldSmaj (I am an avowed enemy of islam and obama is a damned fool and traitor. Questions?)
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To: Buckeye McFrog

You know what’s funny? There’s a local station that calls itself ‘pirate’, but they have an FCC license.


23 posted on 03/04/2014 6:51:23 AM PST by real saxophonist (More Cowbell.)
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To: The_Republic_Of_Maine

I agree on both counts. The parts section is horribly small. And, to top it off, the ‘help’ usually don’t even know the names of common parts.

And the service is pushy, of course. Every time I go into one...they see my phone....and ask how long I’ve had it, do I like it, how long until my contract expires. Very pushy - I’m sure that comes from headquarters.

But also arrogant. Some of these ‘wiz kids’ are too dumb to understand how much they don’t know...and that knowledge of the latest cell phone model isn’t an indicator of genius.

They’ve kicked out the crusty HAM radio operators, and put in teenagers - just like the cell phone kiosk at the mall.

I’m shocked they’re still around, really.


24 posted on 03/04/2014 6:51:38 AM PST by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: KoRn

Now you see, we’re not highly paid consultants but it seems to me their biggest asset was their stores. Had they made a calculated merger or partnership with a popular website like newegg they could have had a terrific symbiosis.


25 posted on 03/04/2014 7:09:42 AM PST by Bogey78O (We had a good run. Coulda been great still.)
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To: Bogey78O
"Now you see, we’re not highly paid consultants"

Oh, of course. With their consultants and MBAs, they will fail spectacularly, and look and sound good while doing it! If you look back at the people and businesses that literally built this country, you didn't have so much of the 'educated/political class' like we have today. You had people with ideas/vision who were willing to work their asses off, take risks, and grow. They were guided by common sense and the drive for profits, in a country that allowed them the freedom to do so.

It has all been turned on its head, and is the polar opposite of what made us great. Our road to ruin is going to be paved with the overly "educated" who are just barely more than FOOLS, highly paid consultants, bureaucrats, and politicians who claim they only want the best for everyone and KNOW just what to do to MAKE it happen.

26 posted on 03/04/2014 7:31:13 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: ken5050

“Just watch..they’ll announce a merger with JC Penny”

yup then they can sink together, or maybe merge with Sears K-Mart and the whole bunch can go down together.


27 posted on 03/04/2014 7:57:32 AM PST by The_Republic_Of_Maine (Be kept informed on Maine's secession, sign up at freemaine@hushmail.com)
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To: lacrew

“I’m shocked they’re still around, really.”

Back when Lafayette wa a round RS was a major player, then Lafayette electronics went out of business, RS had the electronics parts business to themselves, they got fat, happy and mostly dumb and now they are junk.

And like you, I am amazed that they are in business today.


28 posted on 03/04/2014 7:59:59 AM PST by The_Republic_Of_Maine (Be kept informed on Maine's secession, sign up at freemaine@hushmail.com)
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To: real saxophonist
You know what’s funny? There’s a local station that calls itself ‘pirate’, but they have an FCC license.

What's funnier is that their Chief Engineer likely spends at least ten hours of his week driving around looking for pirate signals so that he can narc them out to the Feds.


29 posted on 03/04/2014 8:56:54 AM PST by Buckeye McFrog
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To: The_Republic_Of_Maine
“Just watch..they’ll announce a merger with JC Penny” yup then they can sink together, or maybe merge with Sears K-Mart and the whole bunch can go down together.

They could call the combined chain Retail Fail


30 posted on 03/04/2014 8:58:10 AM PST by Buckeye McFrog
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To: The_Republic_Of_Maine

I’m sure they’ve been hurt by a decline in interest in home tinkering, and cut rate process on the internet. And I understand that is out of their control.

But they have strayed from having ‘neat’ stuff. By neat, I mean stuff you couldn’t find anywhere else, especially the toys and RC stuff.

Recently RC stuff just made a quantum leap. The cars have given up on fuel engines, and now there are very high powered electric ones. And the quad copters make it so almost anyone can fly a hovering RC. But I don’t see this stuff at my Radio Shack. All I see is very expensive and unimpressive RC toys that look like they are meant for toddlers.


31 posted on 03/04/2014 9:10:34 AM PST by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: mykroar

Treat your customers like crap, sell them crap, and overcharge them for your crap and it’s a wonder it didn’t go completely belly up 30 years ago.


32 posted on 03/04/2014 10:01:29 AM PST by LibWhacker
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To: mykroar

Here’s the problem: http://www.highbeam.com/doc/1P2-7652350.html


33 posted on 03/04/2014 10:28:54 AM PST by Western Phil
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