RadioShack may be closing 500 stores this year

RadioShack is expected to report as many as 500 store closings this year as part of its turnaround efforts.

The company has more than 150 stores in New Jersey and over 5,400 nationally, according to current store listings.

“People familiar with the matter” told The Wall Street Journal that it isn’t uncommon for companies to close stores while undergoing an image and operational transformation.

RadioShack released an ad during Sunday’s Super Bowl, essentially acknowledging its outdated image and store design. The effort generated positive reviews and the company’s stock increased nearly 8 percent on Monday.

RadioShack isn’t the only electronics retailer to introduce downsizing efforts. Competitor and Richfield-based electronics retailer Best Buy Company, Inc., closed approximately 50 total big-box stores in the United States in 2012 and 15 in Canada last year, in addition to implementing multiple rounds of job cuts. And another electronics retailer—Virginia-based Circuit City Stores, Inc.— closed its brick-and-mortar locations altogether in 2009.

RadioShack currently operates more than 60 locations in the greater Twin Cities metro area.

Agencies/Canadajournal