RadioShack closing 1,100 stores after dismal holidays
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 its stock down 23 percent.
The planned closures would leave the Fort Worth, Texas-based chain with over 4,000 stores, including over 900 dealer franchise locations, its chief executive officer said.
Sales at stores open at least a year fell 19 percent in the fourth quarter on weak customer traffic.
RadioShack’s sales have been in free fall amid executive departures, tough competition and an image problem. Despite its ubiquitous presence, analysts say the U.S. retailer 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.