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RadioShack plans to close up to 1,100 underperforming stores

Norwalk Reflector Staff • Mar 10, 2014 at 12:37 PM

RadioShack plans to close up to 1,100 underperforming stores in the United States.

The locations have not been announced. Norwalk's RadioShack store is located in the Norwalk Korners Plaza.

There will be about 4,000 stores remaining after the closings.

RadioShack’s fourth-quarter financial results showed a net loss of $191.4 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," Joseph C. Magnacca, chief executive officer, said. "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.

"Our brand equity remains strong, reflected in the sales growth we're seeing in our new Concept Stores which redefine the RadioShack store experience," Magnacca added. "We have also been encouraged by the positive response to our new brand positioning around "Do It Together," which we kicked off with our award winning Super Bowl commercial. Importantly, our key hires during the fourth quarter in merchandising, global sourcing, planning and allocation and, more recently, our new chief financial officer, round out our new leadership team as we continue to re-build the business."

RadioShack ushered in the company's new brand positioning with a 30-second ad featuring '80s icons during last month's Super Bowl. The ad was meant to shed outdated perceptions of the brand for consumers in need of a reintroduction to RadioShack.

"Our focus on the brand, our operations, and the in-store experience has been unfolding in parallel with a strategic review of our store footprint," Magnacca said. "Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles – location, area demographics, lease life and financial performance – in order to consolidate our store base into fewer locations while maintaining a strong presence in each market. The result of that review is our plan to close up to 1,100 underperforming stores. We will continue to have a strong, unmatched presence across the U.S. with over 4,000 stores including over 900 dealer franchise locations.

"Without minimizing the challenges ahead, we have a detailed strategic path to profitability based upon the five pillars of our turnaround," Magnacca concluded. "Our entire team is focused on execution as we work to improve our performance in the coming year."

RadioShack isn't the only chain experiencing financial difficulties. Last week, Staples Inc. announced it would close more than 200 stores nationwide by the end of 2015.

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