RadioShack’s disappointing Q1 sales spell branding changes
FORT WORTH, Texas — RadioShack posted first quarter 2013 quarter sales of $849 million and a loss of $43 million, compared with $913 million last year and a loss of $8 million.
As a result of the company’s disappointing first quarter, it has ended its mobile phone partnership with Target. RadioShack said it had stopped operating its Target Mobile centers before the end of last month. The company had operated mobile phone kiosks inside Target stores.
RadioShack's CEO since February has been Joe Magnacca, who was previously EVP daily living products and solutions at Walgreens, having joined Walgreens in 2010 when it bought Duane Reade, where he had served as president. Magnacca is not letting the slump in sales, higher than the company estimated, dampen his outlook for the company’s future.
"In the few weeks that I have been with the company, I have distilled several key learnings that have led me to focus on an initial set of priorities to begin driving our turnaround: building the right management team, reinvigorating the store experience, and jumpstarting our powerful brand. While I inherited an experienced management team, there were a couple of important roles to fill. Last week, we announced the hiring of a new chief marketing officer and a new senior vice president of store concepts," said Magnacca.
Magnacca stated that RadioShack is rolling out a new brand image, and customers can expect to see changes in the company’s branding and advertising soon. Strategic New York City locations will be getting a new look and feel throughout the next few weeks. The company will also be revamping its online and mobile channels over time so it can provide customers with a seamless experience and work to make itself relevant again.
"RadioShack has a uniquely strong franchise. We have a powerful brand that has stood the test of time over nine decades and has a large, loyal customer following. We have strong relationships with leading vendors and a portfolio of trusted private brands that offer highly innovative technology products. We have a vast network of more than 4,300 company-operated stores and approximately 1,000 dealer outlets across the U.S. We have an established international presence in more than 25 countries, including 270 company-operated stores in Mexico. Most important, we have approximately 30,000 employees who are genuinely focused on delivering solutions for our customers," added Magnacca.