A struggling RadioShack will permanently close the doors on 1,100 U.S. stores as the result of a weak holiday season.
The company broke the news in a statement Tuesday, noting a fifth of its stores would fold. Executives cited lower store traffic, intense promotional competition and logistics issues as the roots of the problem.
The New York Times reports RadioShack's annual losses continued to slip exponentially in 2013.
The chain ended last year $400 million lighter, while in 2012, its total losses were $139 million. Not to mention 2013 revenues shrank to roughly $935 million in the fourth quarter, down from $1.17 billion during the same time in 2012.
This is the second time this year the electronics retailer has threatened to close stores. This from the start of February:
"The Journal also says RadioShack is going to close 500 stores. The retail chain has more than 4,000 stores nationwide but has been struggling for two years." (Via CBS)
The leader trying to patch the holes is recently hired CEO Joseph C. Magnacca. In the statement, he remained optimistic and confident the Shack was headed into 2014 with a new image.
"Our brand equity remains strong, reflected in the sales growth we're seeing in our new Concept Stores which redefine the RadioShack store experience." (Via RadioShack)
Under Magnacca's leadership, part of that "experience" was reflected in a new Super Bowl ad, which aired this year — and probably cost a good chunk of change.
"The '80s called. They want their store back." (Via RadioShack)
Even though it's notably missing Howie Long, the Shack designed the ad to shed its tired, beige storefront and introduce customers to a new shopping experience.
Under its new mantra, "Do It Together," RadioShack is betting a refreshed store and instant, in-store help will keep consumers coming back.