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RadioShack will close 1,100 stores, twice as many as expected

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Things haven't been looking rosy for RadioShack lately, with speculation last month that it would close up to 500 of its stores across the United States, but the truth has turned out to be even starker. As part of its Q4 2013 financial report, the electronics retailer is announcing plans to close up to 1,100 "underperforming" outlets. That will leave RadioShack with 4,000 locations across the country, illustrating both the magnitude of the cut and the strength of its remaining presence.

Though RadioShack isn't going away anytime soon, its shrinking revenues — which have prompted the drastic downsizing — are putting pressure on the company. A number of recent efforts to revitalize the brand image have yet to pay off, though at least company CEO Joseph Magnacca is encouraged by its new concept stores. The sales growth there, he says, reflects a strong brand equity that should return RadioShack to profitability in the future. As to the fourth quarter just completed, the company recorded a $191.4 million loss, disappointing even the most skeptical of forecasters. That's more than RadioShack's loss for the entire previous fiscal year, which was $139.4 million and has been followed by just over $400 million in total for the full 2013.