Tomahawk, WI 03/05/2014 (Basicsmedia) – The fall from an annual net loss of $63.3 million in 2012 to another $191 million in net losses this year, has lead finally RadioShack Corporation (NYSE:RSH) to rethink its store design and distribution strategically. The same quarter revenues went down from $1.17 billion last year to $935.4 million this year. RadioShack CEO, Joseph C. Magnacca announced yesterday, that over the last few months the company conducted rigorous portfolio review from “many angles – location, area demographics, lease life and financial performance – “. The aim is to arrive at a consolidated yet stronger presence in all markets, he opined.

Should you sell RadioShack Corporation (NYSE:RSH) at current price

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No More RSH Next Door

RadioShack Corporation (NYSE:RSH) will be shutting down as much as 20% of its 5200 franchised or operated stores and follow up with a contemporary overhaul. Thus, it will still be left with a large legacy of over 4000 stores all over the US.

RSH Lost the First Liners Edge; Losses Rose

Lately, trends like poor holiday sales, softer mobility market place and the boom of internet retail both have had their way with specialty retailer RadioShack Corporation (NYSE:RSH). This is why the self proclaimed, “trailblazer in consumer electronics” and “responsible for many industry firsts” (so it says on its website), has learned that brand positioning and cost efficiency won’t help it last in long-run.

Will a Turnaround Be successful

The big Question now is whether they can implement the turnaround, with the same vigour with which initiated building up from humble beginnings. There seems to be great promise in the SuperBowl commitment but it lacks necessary financial backing.

How RSH Can Make It Work

RadioShack Corporation (NYSE:RSH)’s biggest challenges will be to re-emerge as “the go to spot” for Gen-X and Gen-Y customers who prefer shopping for consumer electronics online at retailers like Amazon Inc (NASDAQ:AMZN) and eBay Inc. (NASDAQ:EBAY). Secondly, the only thing that matters to competitive edge of bricks and mortar retailers is a shopping experience and Radio Shack Stores (NYSE:RSH) stores do not deliver that anymore.

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