RadioShack Closes 1,100 Stores

RadioShack is closing 1,100 stores, representing almost 20% of its total number.

Blaming decreased traffic and weak cell phone sales, company executives presented the company's plan in a fourth quarter call for investors. (Access the call: (888) 286-8010, replay pass code 13147362.) On the call, CEO Joe Magnacca discusses reasons for declining sales and strategic plans. He also praises the company's successful Super Bowl's ad.

In a news release, the company maintains a positive outlook, quoting Magnacca:

"Even in this environment, we're continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility."

A video on the website, "Do It Together Campaign," promotes part of the company's new direction.

In 2006, RadioShack was criticized for communicating layoffs in an email that read, "The work force reduction notification is currently in progress. Unfortunately your position is one that has been eliminated." We have no word yet on these layoffs are communicated internally.

Discussion Starters:

  • What are the key messages of RadioShack's four communications presented here: the ad, the DIT video, the press release, and the investor call?
  • What works well about the ad and DIT video, and what could be improved in each?