Radio Shack 2011 Annual Report Download - page 3

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RADIOSHACK CORPORATION 1
Every business leader recognizes that change — no matter how challenging
— is necessary for growth and progress. In 2011, RadioShack continued the
transition in our business mix, shifting to a more compelling wireless portfolio
that spans the best carriers, devices and services. We’ve made steady
progress in this effort, leveraging our experience, scale and iconic brand to
become a mobility leader. However, the transition hasn’t always been easy
and, in 2011, we experienced both successes and setbacks.
During the year, we drove sales,
strengthened our balance
sheet and controlled costs,
despite a persistent recession-
ary environment. We also
significantly strengthened our
mobility business, reconnecting
with customers in our signature
platform and taking advantage
of select opportunities in the
consumer electronics platform.
Most important, we successfully accomplished
a mobility transition that introduced our
customers to the nation’s largest carrier,
Verizon Wireless. This transition places
RadioShack in a new and stronger competitive
position in the mobility space and balances
our mobility business more evenly among the
three carriers in our company-operated stores.
As we build consumer awareness that Verizon
is available at RadioShack and continue to
gain traction across our mobility platform,
we expect to have a stronger,
more stable foundation for
mobility growth going forward.
While we are pleased with
our progress in expanding
and balancing our mobility
business during 2011, these
accomplishments brought with
them some unexpected challenges
that ultimately constrained our
financial results for the year. Despite this, we
continued to drive business improvement and to
leverage our position as a mobility leader — a
status that is taking on increased significance as
smartphones become ever-present companions
in consumers’ daily lives.
The growing popularity of smartphones promises to
be a long-term trend that will benefit RadioShack.
According to the Consumer Electronics Association,
consumers are expected to purchase an estimated
109 million smartphones in 2012, generating
LETTER TO SHAREHOLDERS
Jim Gooch
President and
Chief Executive Officer