Title: 5 Reasons Why RadioShack Went out of Business
Headings: 5 Reasons Why RadioShack Went out of Business
5 Reasons Why RadioShack Went out of Business
1. High Store Concentration
2. Online Competition
3. Product Concentration
4. Management Problems
5. Financial Missteps

Content: The company frequently changed its management and direction for the turnaround. In addition, RadioShack made a financial mistake by taking a loan from Salus Capital in 2013 that required the lender to close no more than 200 stores a year. 1. High Store Concentration
In 2014, RadioShack operated about 4,300 stores in North America. However, there were many stores that were located too close to each other. For example, there were 25 stores near Sacramento, California, located within a 25-mile radius, and seven stores within five miles around Brooklawn, New Jersey. With so many stores within close proximity to each other, RadioShack experienced a significant drop in profitability and inventory problems as the store traffic dried up. It became very costly to maintain so many stores with sometimes insufficient inventory in one area. 2. Online Competition
Relying solely on its brick-and-mortar sales network, RadioShack began experiencing significant profitability and sales pressure, as consumers were buying electronics parts and other gadgets from online retailers such as Amazon and eBay.