Tuesday

Radio Shack Waterlogged, Listing Heavily

Radio Shack, at one time an oasis to those of us with a geeky bent, just posted it's 9th straight quarterly loss and is still struggling to find a working identity in modern times. Radio Shack was once a home to the pieces parts that electronics and computer tinkerers thrived upon; 555 timer chips, soldering irons, breadboards, transformers, tuning coils, transistors and on and on. Now, it's just another strip mall casualty. *heartfelt sigh*

RadioShack's shares fell as much as 14 percent amid doubts about the company's long-term prospects as a series of executive exits have added to the competitive pressure it faces from stores offering a wider selection at lower prices.
The company has been slashing prices to outdo retailers such as Best Buy Co Inc, Amazon.com Inc and Wal-Mart Stores Inc, yet its sales have been falling since 2010. 
"The (RadioShack) brand is tired, and they don't have the capital to re-position the brand," Wedbush Securities analyst Michael Pachter said, adding that the company can turn things around only by drawing customers back into its stores. 
The company's net sales fell a steeper-than-expected 13 percent and sales in stores open for at least a year fell 14 percent in the first quarter ended May 3.
Reuters


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