Electronics retailer RadioShack continues to fight for its existence despite same-store sales sinking 19% in the recent quarter. The Texas-based retailer said it will close up to 1,100 stores across the U.S. as it shrinks its footprint amid escalating losses.
CEO Joseph Magnacca said the closures would leave RadioShack with more than 4,000 U.S. stores, including more than 900 dealer franchise locations. The company didn't immediately identify which stores will be closed or how many jobs would be affected.
In Northwest Arkansas there are no corporate-owned stores, but there are three franchise locations operated by Vaughn Electronics. These are not expected to be impacted by the other closures. There are two corporate stores in Fort Smith, representatives at both locations said the list of closures has not been released.
The company said that the stores targeted for closures are being selected based on location, area demographics, lease duration and financial performance.
In the quarter ending Dec. 31, RadioShack lost $191.4 million, or $1.90 per share. Losses widened from deficits of $63.3 million or 63 cents a share, a year earlier. Revenue declined to $935.4 million from $1.17 billion. Wall Street was looking for higher revenue of $1.12 billion.
In the past two years RadioShack has recorded losses of $539.6 million. Shares of RadioShack fell 46 cents, or 17% to $2.26.
Analysts said the electronics space is challenging for all the players, and with Best Buy and Amazon firmly stationed, it’s unclear how much room there is for niche players and other big box retailers.