The Wall Street Journal reports that RadioShack plans to close around 500 of its stores in the next several months, which is around 11% of their stores. The news comes on the heels of its nostalgic Super Bowl ad, featuring popular icons of the 80s and 90s like Hulk Hogan, Erik Estrada of CHiPs fame, and the California Raisins. The ad was well-received and even helped boost the stock for a day.
In the past, Radioshack was a viable alternative to big box retailers like Best Buy and Circuit City, when looking for electronics and accessories. Its smaller footprint model enabled RadioShack to open more stores where big box retailers couldn't access as easily. In more recent years, it's attempted to make a push into the smartphone market.
As online shopping continues to grow, Radioshack hasn't been able to match the competitive pricing of pure play etailers like Amazon and Newegg, or its brick and mortar competitors like Best Buy. When comparing Frontpage deals on site in 2013, we see Radioshack has 20 compared to several thousand from Amazon in the same timeframe.
When's the last time you purchased something from Radioshack, either online or in store?
[Source: The Wall Street Journal via The Verge ]
Radioshack to Close 500 Stores in Coming Months
02-04-2014, 05:56 PM