Radio Shack 2013 Annual Report Download - page 2

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DEAR FELLOW SHAREHOLDERS,
Joseph C. Magnacca
Chief Executive Officer
Best regards,
2013 was a year dened by dynamic change and challenges
as we worked to re-establish retail business fundamentals
for
RadioShack. As an icon of American retailing, we have powerful
and positive brand equity with our customers. Yet, for the past
several years, the company has struggled to nd its place in
the market and, more importantly, with the consumer.
We continue to move in the right
direction, though our
disappointing 2013
nancial performance did not reect the
progress we made throughout the year
in developing the infrastructure to grow
our business for the future.
We have identied the ve pillars of our
turnaround strategy and dedicated our
resources to repositioning the brand;
revamping our product assortment;
reinvigorating our stores; improving operational eciency
and creating nancial exibility for RadioShack.
We made signicant progress on each of these fronts.
The launch of our authentic brand positioning, “It Can Be Done
When We Do It Together,” during the Super Bowl earlier this
year raised awareness of our consumer-focused approach.
I’m proud to say that our associates consistently rank at the
top in customer service. We intend to further invest in their
knowledge and expertise to passionately serve our customer.
Of particular note, we saw positive consumer reaction to
our concept store experience and mobile device repair
program, and made signicant improvements in product
categories that will continue to grow, such as digital tness,
sound, do-it-yourself (DIY) assortment and innovation
in private brand. In addition, we completed a refinancing
package to further enhance our balance sheet.
At the same time, our recent decision to close a number of
under-performing stores will allow us to focus on our remaining
stores as protable, on-brand RadioShack experiences,
addressing many of the turnaround pillars. RadioShack will
continue to have a signicant store footprint in 30 countries,
including company-owned stores
and valued franchise partners.
Rebuilding our senior management
team has also been one of my top
priorities. Over the past year, we
have added best-in-class leadership
in merchandising, marketing, product
development, and planning and allocation, including the
most recent addition of a new chief nancial ocer. This new
leadership team is now working eciently and in partnership,
setting the stage for improved performance.
Without minimizing the signicant challenges ahead of us,
I am condent we are addressing the issues that have
hindered our nancial performance. We look forward to
providing you with future updates as we drive shareholder
value by xing the fundamentals and re-establishing the
strength of the RadioShack brand.