Alaska Radio Shack not part of large-scale store closings

WASILLA — If you believe its wildly popular Super Bowl commercial, Radio Shack may not be trapped in the 1980s anymore. But just weeks after the longtime electronics retailer poked fun at itself while proclaiming a makeover that brings the brand into the 20th century, Radio Shack has announced plans to shutter as many as 1,100 underperforming stores in the United States.

With 2013 fourth-quarter revenues coming in a $935.4 million, a significant drop for the $1.71 billion realized in 2012, the company reports overall sales down 19 percent driven by declines in store traffic. Even more glaring is the drop in gross profit the company reports for that fourth quarter, which declined from $419.3 million to $278.4 million.

The decision to ax up to 1,100 stores is the best move for the company overall, said Joseph C. Magnacca, CEO for Radio Shack.

What that means for the seven Radio Shack stores in Alaska, including the Valley’s only outlet at 1830 E. Parks Highway, Suite 110 in the Creekside Plaza, is business as usual, said manager Carl Pierce.

“Those are all corporate stores and all down in the Lower 48,” he said about the pending closures. “It shouldn’t affect us here in Alaska.”

One reason is the Alaska stores are all Radio Shack franchises and independently owned, he said. Another is some of the retail store traffic problems that have plagued the Lower 48 stores are less pronounced in the 49th state. But the news has also prompted many to wonder about the Wasilla Radio Shack’s future, Pierce said.

“About one or two people a day ask if we’re closing down,” he said. “Business isn’t overly horrendously wonderful, but it’s about average. I think if this store closed, the Valley would totally be up a creek without a paddle.”

Prior to Radio Shack’s announcement of the pending store closings last week, the company recently made positive waves in the marketplace with its clever and well-received Super Bowl commercial. It begins with a store clerk answering the phone, then proclaiming, “The ’80s called. They want their store back.” Then the doors fly open and dozens of 1980s icons and clichés pour through and loot the store. The cameos are nearly endless, including Cliff Claven from “Cheers,” Hulk Hogan, Mary Lou Retton, Dee Snyder, Alf, the California Raisins, Mr. Goodbody, Sgt. Slaughter and Erik Estrada in his “Chips” uniform.

They plunder the old 1980s version of Radio Shack, make their getaway in the “Back to the Future” DeLorean, then leave the company to rebrand itself as sleek and modern.

“I love it,” Pierce said of the ad. “I thought it was awesome.”

It also rings somewhat true for the Wasilla store, which has already undergone its share of upgrades and changes over the past couple of years. The store moved in October 2012 from the Carrs center in Wasilla to the Creekside Plaza.

“We’ve pretty much had a makeover since before we moved, and we’ve been trying to keep it up to date,” Pierce said. “So that hasn’t really affected us here. We’re not the ’80s store.”

Although the store moved nearly 18 months ago, getting the word out that Radio Shack in Wasilla is still in business has been more of a challenge than they anticipated, Pierce said. That’s because many people assume that if the store isn’t where it was, it went out of business.

“We get about a dozen calls a day asking if we’re still open,” he said. “We’re here and we’re doing all right. Like everyone else in the world, we can do better, too.”

Contact Greg Johnson at 352-2269

or greg.johnson@frontiersman.com.