Just a day after RadioShack got some of its best reviews in years for a self-deprecating Super Bowl commercial, reports are that the Fort Worth-based retailer plans to close about 500 of its 4,500 stores.
The Wall Street Journal, citing unnamed sources, published the report on Tuesday, saying the stores would be closed in the next few months. Company officials did not respond to the report. The news sent RadioShack’s stock down, as it fell 4.8 percent to $2.36. Following the Super Bowl commercial, which saw ‘80s icons such as Twisted Sister’s Dee Snider and wrestler Hulk Hogan coming to reclaim that era’s technology from a RadioShack store, the stock rose 7 percent. – Robert Francis
“I’m a child of the ’80s so it was great seeing all the characters,” said Derek Rucker, professor of marketing for the Kellogg School of Management at Northwestern University. “I remember seeing Alf. I remember seeing Hulk Hogan. I get what was the message was: Radio Shack isn’t the Radio Shack you think it is; it’s more modernized.” Buying time for the 30-second ad probably cost RadioShack about $4.5 million, according to most estimates. CEO Joseph Magnacca, who joined the company in February 2013 from Walgreens, has said any turnaround at the company will take several quarters.