RadioShack To Close Up To 1,100 Underperforming Stores
LOS ANGELES (CBSLA.com) — Dozens of RadioShack locations in Southern California are in danger of closing after the electronics retailer reported poor sales during the holiday season.
RadioShack Corporation announced Tuesday plans to close up to 1,100 underperforming stores in the U.S. It's not yet known how many of those underperforming stores are in the Southern California area, but Los Angeles alone has nearly 70 RadioShack locations.
"Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles – location, area demographics, lease life and financial performance – in order to consolidate our store base into fewer locations while maintaining a strong presence in each market," RadioShack CEO Joseph C. Magnacca said in a statement.
The company will continue to have a strong presence in the U.S. with more than 4,000 stores following the closure of underperforming stores, he said.
The company reported that store sales were down 8.8 percent. The company's consolidated gross profit was $1.17 billion, or 34.1 percent of net sales, compared with $1.47 billion last year, or 38.4 percent of net sales.
