Radio Shack 2008 Annual Report Download - page 21

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and four administrative offices and one manufacturing plant in China. Our leased distribution center in
Columbus, Ohio, was closed during the first half of 2008. We own the property on which the other five
distribution centers and two manufacturing facilities are located within the United States. In 2008, we
amended the lease for the buildings and certain property at our corporate headquarters located in downtown
Fort Worth, Texas. The amended lease is for a reduced amount of space, requires no lease payments, and
expires in June of 2011, with one two-year option to renew at market-based rents.
RETAIL LOCATIONS
The table below shows our retail locations at December 31, 2008, allocated among U.S. and Mexico
company-operated stores, kiosks and dealer and other outlets.
Average
Store Size At December 31,
(Sq. Ft.) 2008 2007 2006
U.S. RadioShack company-operated
stores
2,505
4,453
4,447
4,467
Kiosks (1) (2) (3) 99 688 739 772
Mexico RadioShack company-operated
stores
1,265
200
--
--
Dealer and other outlets (4) N/A 1,411 1,484 1,596
Total number of retail locations 6,752 6,670 6,835
(1) Kiosks, which include Sprint-branded and Sam’s Club kiosks, decreased by 51 and 33 locations during 2008 and
2007, respectively. These closures primarily related to our decision not to renew leases on underperforming Sprint-
branded kiosks.
(2) Our contract to operate Sprint Nextel kiosks expires in June of 2009. We are currently in discussion with Sprint
Nextel to renew this contract, but the ultimate resolution is unknown at this time. The possible outcomes include
renewing the contract under the same terms and conditions, modifying the contract, or ceasing operations.
(3) In February 2009, we signed a contract extension through March 31, 2011, with a transition period ending June 30,
2011, with Sam’s Club to continue operating kiosks in certain Sam’s Club locations. As part of the terms of the
contract extension, we will assign the operation of 66 kiosk locations to Sam’s Club by July 2009. Upon the
execution of this agreement, Sam’s Club had the right to assume the operation of approximately 25 kiosk locations.
Based on certain performance metrics, Sam’s Club could acquire the right to assume approximately 25 additional
kiosk locations in 2010. The total number of locations assumed by Sam’s Club, for any reason, may not exceed 51
kiosk locations during term of the contract.
(4) Our dealer and other outlets decreased by 73 and 112 locations, net of new openings, during 2008 and 2007,
respectively. This decline was primarily due to the closure of smaller outlets and conversion of dealers to U.S.
RadioShack company-operated stores. Additionally, we closed all of our 23 locations in Canada by January 31,
2007.
Real Estate Owned and Leased
Approximate Square Footage
At December 31,
2008 2007
(In thousands) Owned Leased Total Owned Leased Total
Retail
RadioShack company-
operated stores
13
11,141
11,154
18
11,218
11,236
Kiosks -- 68 68 -- 73 73
Mexico company-
operated stores
--
253
253
--
--
--
Support Operations
Manufacturing 134 320 454 134 320 454
Distribution centers
and office space
2,229
1,021
3,250
2,229
1,689
3,918
2,376 12,803 15,179 2,381 13,300 15,681
14