Company Snapshot: RadioShack
300 RadioShack Circle
Fort Worth, Texas 76102
Total Annual Sales:
Joseph C. Magnacca- CEO
RadioShack has been facing stagnant annual financials for the current century. The recession remarkably saw a continuation of this smothering trend, positively helped in large part by the growing popularity of mobile phones, especially the advent of smart phones.
Lately the numbers have been sagging badly. This, despite the hiring of Joe Magnacca early last year, as CEO after his most impressive stint building the new Duane Reade/Walgreens.
Mr. Magnacca has brought his people into key executive positions and as expected used his expertise to enhance the merchandising mix. RadioShack won plaudits with their Super Bowl commercial, which introduced its much-needed new store concept. Many observers rated it the best of the Super Bowl ads.
However designing a bold, new store prototype is only the beginning of a successful redesign. The cost and complexity of radically remodeling several thousand locations, causes a financially struggling company to pause. In the meantime, early this year the company announced its intention to close 1,000 locations. This came under fire as this number of closures was in violation of contractual agreements with the company’s creditors. The number of anticipated closures for this year has since been reduced to 200.
In its recently issued quarterly report, RadioShack announced that same-store sales declined 14%. Despite this, the still relatively new Magnacca administration remains optimistic and innovative. They see their new store concept as an ultimate winner and are experimenting with rollouts of in-store repair services, first for cell phones and then for computers which are out of warranty.