Article content David Paul Morris/Bloomberg This advertisement has not loaded yet, but your article continues below. “We are skeptical that his efforts will bear fruit over the near term given the late stage of decline and what we consider to be lasting damage to the RadioShack brand… we expect RadioShack’s core consumer electronics business to continue to slide,” he said. In a note to clients, Wedbush Securities analyst Michael Pachter expressed doubts about CEO Joseph Magnacca’s strategy and the future of the company. The company has spent a lot of its money on marketing and “concept stores,” where customers can try products before they buy them. RadioShack ended the quarter with cash and equivalents of US$61.8-million, about one-third of the US$179.8-million it held on Dec. Sales in stores open for at least a year fell 14% in the first quarter and the company plans to close 200 stores per year over the next three years – a slower pace than analysts expected. This week, RadioShack posted a first-quarter loss of US$98.3-million, or $0.97 per share, compared to a loss of US$23.3-million last year. All Rights Reserved.This advertisement has not loaded yet, but your article continues below.
All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Federal statistics show that almost 6,000 electronics and appliance stores have closed in the United States in the past decade, or more than one in 10. Circuit City filed for bankruptcy in 2008 and then went out of business. The electronics field has been particularly hard hit. Related: Sears and Kmart closing 150 stores On Thursday morning, the office supply store Staples ( SPLS) announced it was closing 70 more stores, or about 4.5% of its total, in the face of a loss and declining sales. Retailers have announced plans for hundreds of store closings just this year. But in an age of growing competition from online retailers such as Amazon ( AMZN), traditional brick-and-mortar stores are in trouble. It bragged that there was a store within five miles of where 90% of the population lived or worked. RadioShack once had more than 5,000 stores in the United States. Related: JCPenney to close up to 140 more stores It said that RadioShack's bankruptcy will not have a material impact on its own financial results. Sprint said that it has already reached an agreement with RadioShack to convert several hundred stores into Sprint-owned stores, and that it will be able to provide jobs at other locations for any Sprint employees working at a store that closes.