RadioShack Loses Another CEO; Can the Retailer Recover?
RadioShack’s top personnel spot might seem like a game of executive musical chairs lately. After only nine months at the CEO position, Ron Garriques stepped down “to pursue other interest in a role that will put him back closer to his family,” the company said in a statement last month. This after CEO Joe Magnacca, brought on to revive the nearly extinct retailer, left the company in April of 2015. Also last month Magnacca was named CEO of Massage Envy. In addition to Garriques, RadioShack’s Chief Revenue Officer Marty Amschler is leaving the company.
Years of Declining Sales
RadioShack’s annual sales were relatively flat in the early part of the 2000’s, reaching an all-time high of $5.1 billion in 2005. Since then, the consumer electronics retailer has lost its way amidst increased competition and a diminishing brand.
Store Closures and Sales
During his tenure, Magnacca attempted to reenergize the RadioShack brand with new store formats, including a joint offering with Sprint, overhauled merchandising, and a well-received amusing Super Bowl commercial. Sales did not respond, however, and by the time he left nearly half of RadioShack’s 4,000+ stores closed. Currently, there are less than 1,800 stores in operation.
Garriques arguably fared worse than Magnacca, while staying in the top spot for less time. Some of the new merchandising concepts from his predecessor carried over into his tenure, but there are rumblings that fourth quarter performance was less than stellar. Current CFO Gordon Briscoe will serve as interim CEO until a replacement is found. It might be challenging to woo a visionary leader on board full-time, and one has to wonder how many swing and misses the company has until it’s out for good.