Grim news came from the RadioShack headquarters this morning as the brick-and-mortar retailer announced their plans to close 1,100 of their “underperforming stores” spread across the US. This announcement followed 2013’s disappointing financial year for the company which reported a loss of $191.4 million during this quarter ad a revenue decline of 20%. Joseph C. Magnacca, RadioShack’s CEO, blamed the majority of its recent performance decline on “lower store traffic” and “intense promotional activity”.
With growing competition coming from online retailers such as Amazon or Newegg, there is tough times ahead for any electronics retailers that relies heavily on their physical locations since even the giants in the industry like Best Buy are struggling to survive. RadioShack debuted a new initiative for a revamped brand identity and store design through their popular advertisement that displayed during this year’s Super Bowl, but the real question is whether these changes are coming too late to save the dying company.