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RadioShack To Close 500 Stores In Company Overhaul


RadioShack
will close approximately 500 stores in its ongoing efforts to restructure the business. The company has been undergoing a re-evaluation since former Walgreens executive Joseph Magnacca took over as CEO in February 2013. Sales at the nearly 4,300 RadioShack stores have been on a downward spiral since a peak in the late 1990s. Stock prices have dropped as low as $2.18 per share in recent weeks.

In addition to shuttering stores, RadioShack is focused on updating the brand to become more appealing to a younger, more tech-savvy customer base.

The retailer kicked off its rebranding efforts during the Super Bowl with a TV spot that was considered one of the best commercials aired during the game.  The ad — touting a theme of “out with the old, in with the new” — featured a 1980s-era RadioShack store being overhauled by pop icons of the time, such as ALF and Hulk Hogan, coming back to “reclaim” the technology from their decade. According to the Adobe Digital Index, RadioShack had a 22X increase in social mentions following the airing of the ad — the largest increase for any company during the 2014 Super Bowl.

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“This is a bold, strategic move for RadioShack, and we’re using the Super Bowl as the platform to get people to rethink RadioShack,” said Jennifer Warren, SVP and CMO at RadioShack. “This ad is meant to grab attention, make viewers laugh, and let people know it’s out with the old and in with the new RadioShack.”

Magnacca added: “We wanted to directly address outdated perceptions of RadioShack, using both humor and nostalgia. We have committed significant work in stores across the country, with design and product assortment, as part of our turnaround effort. And we want to invite consumers back in to experience RadioShack. We love the ’80s like everyone else, but it was time to show how we’ve evolved.”

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