Radio Shack is closing 500 stores in the coming months as it continues its shift from a classic place to buy electronics to one with more entertainment accessories in headphones and protectors for smartphones The Dallas Business Journal reported Tuesday.
"I think we're a 4,000-plus network," Joe Magnacca, CEO at RadioShack Chief told The Business Journal in November. "My job is to make sure that we've got the market covered."
Radioshack obtained $835 million in loans in October from an investor group owned by GE Capital in order to renew $625 million of the debt The Journal reported.
"It was to be expected," Liang Feng an analyst at Morningstar told The Business Journal. "I would estimate a significant portion of their store base is not profitable. I wouldn't be surprised to hear if more stores will be closed in the future," Feng told The Business Journal.
"We still remain skeptical that the turnaround will succeed," Feng told The Business Journal. "I would lean toward the idea that its (efforts are) not working, but it's still taking the right steps."
Magnacca became Radio Shack CEO in February 2013, and began to look at the future of the company through re-development of its leaders The Business Journal reported.
The retailer also set up a concept store, and defined a marketing strategy in order to be successful.
Radio Shack unveiled its new strategy via a campaign Monday. The retailer also marketed its message during a 30-second television ad titled during the Super Bowl Sunday The Business Journal reported.
The ad is titled: "The 80s called: it wants its stores back," and depicts a message about how it is reportedly known as an old school retailer The Business Journal reported.
"It can be done, when we do it together," the company's motto for the campaign says.
"We feel like it was a small investment for a game changer for our brand," Jennifer Warren, chief marketing officer at Radio Shack told The Business Journal.
"We couldn't have hoped for any better than what we've gotten externally, from the press and customers voting us on top."
