Tandy said its RadioShack stores turned in double-digit sales gains for both 1999 and the year’s final quarter and started off 2000 with a similar performance in January.
For the year’s last three months, Tandy said, RadioShack sales were up 14 percent to $1.36 billion, to put the sales total for the full year at $1.04 billion, up 15 percent. Comparable-store sales were up 10 percent for the quarter and 12 percent on the year. January sales increased 11 percent to $327.7 million, and same-store volume rose 8 percent.
Cellular and PCS wireless phone products and services were the sales drivers for RadioShack during 1999, as well as at the start of this year, said CEO Leonard Roberts. Sales last year also were strong for DVD players and home satellite systems.
Roberts anticipates continued growth in the wireless phone area and in satellite systems, due to the planned second-quarter launch of the RCA Digital Entertainment Center now being rolled out to RadioShack’s more than 7,000 stores. “We fully expect to also grow our recurring residual revenue stream to $90 million to $100 million in 2000,” he said, and achieve a goal of an 18 percent-22 percent earnings growth.
“The introduction of the Microsoft store at RadioShack this fall should exponentially enhance our customer acquisition potential,” he added, “while further positioning RadioShack as ‘America’s Home Connectivity Store.'”