RadioShack Corp., the consumer-electronics retail organization formerly named Tandy Corp., has announced plans to close 35 stores; get out of the car stereo, security system and pager businesses; and sell its headquarters facilities in Fort Worth, Texas.
The retailer said it expects to take about $124 million in pretax charges in the fourth quarter, and will take an $8 million expense for the 35 stores (of more than 7300) that it plans to close.
The anchor growth strategy is an operating business model, refined in 2001, to deliver long-term earnings per share gains of 13-15 percent. It is predicated upon comparatively higher growth rates of its core, anchor businesses: accessories, batteries, and parts; and wireless communications.
“The cash impact of this writeoff is less than $10 million, said cfo Michael Newman, “and puts RadioShack squarely on the path to achieve its long-term strategic objective, which is to lead the specialty retail category in shareholder return.” The company said it would have a loss of $45 million on the sale of its Charles D. Tandy Center and the adjacent Technology Center in Fort Worth, plus the Fort Worth Outlet Square Mall across the street. The company will lease the office space back until it moves into a new headquarters facility it will be building in downtown Fort Worth in 2004 or 2005.
Tarrant County, Texas, commissioners have agreed to pay RadioShack Corp. $34 million to purchase the 300,000-square-foot, seven-store headquarters building and adjacent parking garage.
The Charles D. Tandy Center was opened in 1978, on the site of the former Leonard's Department Store (which Tandy Corp. owned), the first major project of the redevelopment of downtown Fort Worth. The Technology Center, built 10 years ago, currently houses RadioShack databases, mainframe computers, sales information and other company records.
In addition to its chain of stores (the company claims that 94 percent of Americans live or work within five minutes of a RadioShack store or dealer), the retailer has lately been adding concept shops featuring Compaq computers, Sprint phones, RCA electronics and Microsoft Internet services.