You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

RadioShack closing 1,100 stores as troubles grow


By CANDICE CHOI and MICHELLE CHAPMAN

Associated Presss

There will soon be about 1,100 fewer places to buy batteries.

RadioShack said Tuesday that it plans to close up to 1,100 stores, or about a fifth of its U.S. locations. The news came as the retailer reported a wider quarterly loss after a disappointing holiday season. Its stock tumbled 16 percent in afternoon trading.

There are more than 10 store locations in the area, but RadioShack didn’t immediately identify which stores will close or how many jobs would be affected. A call to the company, based in Fort Worth, Texas, was not returned.

CEO Joseph Magnacca said the closings would leave the company with more than 4,000 U.S. stores. That’s still far more than Best Buy, which has roughly 1,400 U.S. locations, and makes RadioShack stores nearly as common as Wal-Mart.

The closings represent just the latest setback for RadioShack, which is fighting to update its image and compete with the rise of online and discount retailers.

Long known as a destination for batteries and obscure electronic parts, RadioShack has sought to remake itself as a specialist in wireless devices and accessories. But growth in the wireless business is slowing, as more people have smartphones and see fewer reasons to upgrade.

In addition to slashing costs and shuffling management, RadioShack has been renovating its stores with a more modern look.

“Since I joined the company, it has been clear we need to change the conversation about RadioShack,” Magnacca said during a call with analysts.

He pointed to the success of the company’s Super Bowl ad as an example of “exactly the kind of disruption we needed.” The spot got glowing reviews for poking fun at the company’s outdated image by showing characters from the 1980s including Alf, Chucky and Teen Wolf ransacking its store. Magnacca also outlined various efforts the company is taking, such as revamping its product mix and working to identify trends in electronics earlier.

Still, he conceded that the turnaround push is taking longer than expected because the company was “weak” in many areas and “just broken” in others. The latest quarter’s performance was hurt by a slowdown in customer traffic and increased promotional activity.


Reader Comments ...


Next Up in Business

Some worry over impact from health care law repeal
Some worry over impact from health care law repeal

The U.S. House of Representatives on Friday joined the U.S. Senate in passing a budget reconciliation measure that would allow Congress to de-fund key elements of the Affordable Care Act, including tax credit subsidies and federal funding for Medicaid expansion in states like Ohio. While some are rejoicing over the move, replacing President Obama&rsquo...
Will Obamacare repeal leave people in the lurch?
Will Obamacare repeal leave people in the lurch?

As Congress moves forward on a resolution to repeal the Affordable Care Act, experts have warned such a measure could crash the law’s commercial insurance program, jeopardizing coverage for 11.5 million Americans, including more than 230,000 Ohioans. But local industry leaders remain hopeful that congressional Republicans — who are leading...
Holiday retail sales up, but some stores suffering
Holiday retail sales up, but some stores suffering

Retail sales hit about $658 billion for the holiday season, but several chain retailers still announced the closures of hundreds of unprofitable brick-and-mortar stores in January — including several stores locally. “These numbers show that the nation’s slow-but-steady economic recovery is picking up speed and that consumers feel...
Hospitals on standby as Obamacare repeal moves forward
Hospitals on standby as Obamacare repeal moves forward

Local hospital executives are waiting to react after the U.S. House of Representatives took another step toward repealing the Affordable Care Act, voting Friday to pass a budget resolution already passed by the Senate a day earlier that would allow Congress to change portions of the law. President-elect Donald Trump, who takes office on Jan. 20, has...
Employers track medication use to combat abuse
Employers track medication use to combat abuse

Prescription drug abuse is at the forefront of human resources issues for many employers in Ohio — the epicenter of a national heroin and prescription drug epidemic that resulted in more overdose deaths last year than fatal car wrecks in the state. To address the problem, an increasing number of employers are examining the medications their employees...
More Stories