RadioShack To Close 500 Stores; MN Impact Unclear
RadioShack Corporation is planning to close 500 of its roughly 4,500 nationwide locations as part of a restructuring plan, according to The Wall Street Journal, which cited unnamed sources.
When asked to comment on the report and the impact on Minnesota stores, RadioShack told Twin Cities Business that its policy “is that the company does not comment on speculation or rumor.”
“People familiar with the matter” told The Wall Street Journal that it isn’t uncommon for companies to close stores while undergoing an image and operational transformation.
RadioShack released an ad during Sunday’s Super Bowl, essentially acknowledging its outdated image and store design. The effort generated positive reviews and the company’s stock increased nearly 8 percent on Monday.
RadioShack isn’t the only electronics retailer to introduce downsizing efforts. Competitor and Richfield-based electronics retailer Best Buy Company, Inc., closed approximately 50 total big-box stores in the United States in 2012 and 15 in Canada last year, in addition to implementing multiple rounds of job cuts. And another electronics retailer—Virginia-based Circuit City Stores, Inc.— closed its brick-and-mortar locations altogether in 2009.
RadioShack currently operates more than 60 locations in the greater Twin Cities metro area.