RadioShack broke some bad news Tuesday morning.
In the fourth quarter of 2013, sales were down 19 percent and its profits were only around two-thirds of what they had been the year before. The chain is planning to close 1,100 of its stores, “which have been selected based on location, area demographics, lease life and financial performance.” The closings will leave a little more than 4,000 stores in the chain.
Yet, in the press release the company issued
, CEO Joe Magnacca made a major effort to accentuate the positive “without minimizing the challenges ahead.” For example, he said the chain’s concept stores, which have a streamlined inventory and a different design from other RadioShack stores, have been growing.
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.
Magnacca, who has been chief executive at RadioShack since February 2013, made a big push to the public late last month in which he offered a $10 coupon
on any purchase of more than $30. He also asked for customer feedback on Facebook
and got a little more than 300 comments.
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Those comments mostly seem constructive, and RadioShack replied to just about all of them. The company, at the very least, seems to have opened a dialogue.
RadioShack’s announcement did not note how many employees would be affected by the store closings.