As ingeniously self-deprecating as RadioShack's Super Bowl commercial was, its finances are sadly even more proficient at making a mockery of the company. Shares fell by a delirious 24 percent after holiday sales came in way under its (already managed) expectations. Today the company announced that it will be closing 1,100 stores, leaving it with 4,000 brick-and-mortar locations in the U.S.
(Aside: How in the world are there still 5,000 RadioShacks? That's three times more than Chipotle.)
RadioShack's long slide coincides the steep ascendance of Amazon as America's great brick-and-mortar destroyer. In 2003, Amazon and RadioShack each had about $5 billion in sales, as WSJ business editor Dennis Berman pointed out. Last year, Amazon had $75 billion to RadioShack's $3.5 billion.
Some further comparison is illuminating: At the end of 2013, RadioShack had 5,000 brick-and-mortar stores with 27,500 employees and $3.5 billion in sales, which is $127,000 in sales per employee. Its website is the 1,066th most popular in the world. At the end of 2013, Amazon had zero brick-and-mortar stores with 117,300 employees (full- and part-time) and $75 billion in sales, which is $640,000 in sales per employee. Its website is the 5th most popular in the world.