Under attack in the mobile category, Radio Shack struggles to find its place with today's consumers.
Its deal with 1500+ Target stores (the store-within-a-store that sells mainly postpaid wireless sales and limited higher margin accessory sales) created a loss of $25.4 million in Q3 and $38.2 million so far this year. The company said it may pull out of Target stores if its contract terms aren’t renegotiated.
But that won't fix the bigger problem. RadioShack's Q3 loss of $47 million (versus a profit of $300,000 a year ago) came as
total sales fell from $1.03 billion to $1 billion. Same-store sales declined 1.6%.
The "Signature" segment accounts for about 30% of sales, which includes accessories (including mobile-related products such as headphones) and power and technical products and generates healthy margins. Sales growth is in the low single digits.