Radio Shack closes 1100 stores but boss is still optimistic
Electronics retailer Radio Shack is to close about 1,100 poorly performing stores, roughly 20% of the firm’s American locations.
Radio Shack: sales down 20 per cent
The store closings will leave about 4,000 locations in the U.S. where the company has been struggling to revamp its stores for the past year.
Poor fourth quarter figures were the last straw.
Total revenues were $935.4 million , compared with . $1,171.4 million in the same quarter last year, a 20% decline.
Comparable store sales were down 19%, The company blames the drop on poor performance in its mobile phone business.
Radio Shack shares down more than 20% in premarket trading.
CEO Joseph Magnacca was bullish. He said in a statement. "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,"