RadioShack to close up to 700 Stores

RadioShack to close up to 700 Stores

RadioShack Corporation has said that their fourth-quarter profit plunged 62 percent after the company suffered due to falling sales during the recent holiday season. This hit in the profits is so bad that the company has decided to close down as many as 700 stores nationwide.

This means that as many as 10% of all the stores of the RadioShack chain would get affected by these revenue reports. RadioShack reported that their net income has fallen down to $49.5 million or 36 cents a share. This was much below the market expectations and led to shares of the company fall down by 7.5 percent.

The sales were up 4.9 percent to $1.67 billion. The company is also facing growing competition from other retail store giants like Best Buy Co. and Wal-Mart Stores Inc. RadioShack also suffered due to falling sales of wireless calling plans.

The company also has plans to shutdown two distribution centers and other overheads in order to cut costs and get back to profitability. These new plans alone can cost the company in the tune of USD 100 million.