RadioShack Is Closing Stores but Few Signs of Big Discounts Corporate Intelligence
Post on: 16 Март, 2015 No Comment
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radioshack store closings
A RadioShack in New Yorks Greenwich Village that is on the list to be closed. Keith Bedford for The Wall Street Journal
It was business as usual this weekend at several RadioShack Corp. stores slated for closure in Manhattan.
Slashed prices on electronics and bargain bins brimming with gadgets weren’t in sight. In fact, there were few signs at its stores around the city Saturday that the consumer-electronics retailer had filed for Chapter 11 bankruptcy protection days earlier.
“We’ve been getting a lot of calls, and customers have been asking about sales,” said Hector Colon, an employee at a RadioShack in Greenwich Village on the “potential store closure list.” (See a U.S. map of those stores. ) He said foot traffic has been steady, and the store is waiting to get details on if and when it would close. Aside from regular store promotions, there wasn’t any deep discounting this weekend.
Asked about discounts on items at a downtown store on Maiden Lane, a clerk offered a Weekly Deals flyer with 45% off a RadioShack Slim Wireless Keyboard for $12.99 and a $10 savings on an AntennaCraft Ultrathin Active Indoor Antenna at $49.99. Some store items were marked as Clearance, including a Big Bang Theory 8 GB USB flash drive, in the shape of character Leonard Hofstadter, priced 70% off at $5.97. Other items, such as Mophie Juice Pack Air battery cases for older iPhone models at $79.99, werent on sale.
With more than 100 locations in the New York area, dozens of local RadioShacks are expected to close in the coming weeks. Others will remain open, with some stores operating under an arrangement with hedge fund Standard General LP and No. 3 U.S. wireless carrier Sprint Corp. in which the details are still being worked out in U.S. bankruptcy court. RadioShack has said franchise stores aren’t part of the restructuring.
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A RadioShack on W. 44th Street in Manhattan. Lex Kaptik for The Wall Street Journal
There are about 4,000 RadioShacks nationwide, and some 2,100 locations have been marked for liquidation.
In Midtown, about half of the West 44 th Street store’s merchandise was already packed in boxes on Saturday. Despite a sign in the window that said “Everything Must Go,” there were no shoppers. The Wall Street Journal reported last week that workers at several locations were told to help clear out inventory by shipping big-ticket items to nearby stores that would stay open.
In business for 94 years, RadioShack was once known as the go-to seller of new consumer technology, cutting-edge gadgets and the batteries to operate them, but competition from online retailers and big-box stores has weighed on its sales as it grapples with financial and strategic missteps. The company is expected to return to bankruptcy court on Monday.