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Radio Shack to close 1,100 stores

Posted: March 5, 2014 2:00 a.m.
Updated: March 5, 2014 2:00 a.m.

RadioShack announced on Tuesday that it's closing 1,110 stores, but local Santa Clarita stores have not yet been told if they'll survive the chopping block. Jana Adkins/The Signal

 

In reporting its fourth quarter results, RadioShack Corp. announced Tuesday that it was closing up to 1,100 stores, but it’s unknown if any of the Santa Clarita stores will survive the chopping block.

The stores slated to be closed were characterized as underperforming stores, said the retailers, Chief Executive Officer, Joseph C. Magnacca.

RadioShack has three stores locally in Saugus, Canyon Country and Newhall. The store manager of the Saugus store on Bouquet Canyon said none of the stores have any information whether their particular store will close or not.

Location, area demographics, lease life and revenues will factor into decisions made to close the retail stores.

After the closure, the retailer said it will have over 4,000 retail outlets, the company announced.

The number of closures were twice as many as expected when the company projected closing some 500 stores a month earlier, according to a report in the Wall Street Journal.
Despite intense promotional activity, the retail chain experienced lower store traffic during the holiday season than the prior year.

Comparable store sales were down 19 percent, with total net sales and operating revenues reported at $935.4 million, compared to $1,171.4 million last year.

On an annual basis, operating losses were $344.0 million compared to an operating loss of $25.0 million last year, according to the RadioShack report.

RadioShack has been focused on a turnaround plan, according to Magnacca. Which includes repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility.

The retailer is also experimenting with new concept stores in some markets that include interactive displays enabling shoppers to find comparable products.

RadioShack did not respond to phone or email requests as to which stores would be affected.
Shares of stock closed at $2.25 per share on Tuesday, up from $2.22.

jana@signalscv.com
661-287-5599

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