Former electronics giant Radio Shack will be closing 1,100 of its stores after a disappointing holiday season.
Despite special sales incentives for customers, fourth quarter sales for the chain decreased 20 percent, with only $935.4 million in revenue compared to $1.2 billion last year. The chain tried to re-brand itself with a Superbowl commercial that poked fun at their outdated image, but humor did not save the day.
“Our fourth-quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues,” RadioShack chief executive Joseph C. Magnacca said.
Specific stores have not been identified, but will be determined by location, financial performance, key demographic and lease duration. The number of jobs affected are still uncertain.
Despite the closings, at least 4,000 Radio Shack locations will remain open.