RadioShack to close hundreds of stores in US

RadioShack Corporation has announced that it is to close hundreds of its US stores in response to a poor financial performance in 2005.

The annual report published yesterday shows a fourth quarter 2005 rate of decline of 62% in net income. David Edmondson, President and CEO, said "RadioShack failed to achieve its financial objectives in 2005. We implemented several key changes including executive management, advertising, store operations, merchandise assortment, long-term wireless agreements, and more. We believe that the company’s strategy is sound. But we must move at a much faster pace with a greater sense of urgency, and that is what necessitates our turnaround plan."

Over the next 18 months, RadioShack will replace old, slower moving merchandise with new, faster-moving merchandise within higher growth categories. It will concentrate its efforts and investment on improving top-performing stores.
To do so, it will close 400-700 company-operated stores. In addition, RadioShack intends to close its distribution centers in Charleston, SC and in Southhaven, MS.

RadioShack Corporation, based in Fort Worth, Texas is a consumer electronics speciality retailer and a growing provider of a variety of retail support services. The company operates through a vast network of sales channels, including nearly 7,000 company and dealer stores; over 100 RadioShack locations in Mexico; and more than 700 wireless kiosks

Source: Media Network

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