Brian Sozzi's Retail Roundup Part 3: Radio Shack

On Wednesday, Brian Sozzi, CEO and Chief Equities Strategist at Belus Capital Advisors dropped by on Benzinga's PreMarket show to discuss retailers. While the Seattle Seahawks won the Superbowl, Radio Shack RSH won the “commercial-bowl” with its self-mocking ad that “the 80s called…they want their store back.” Brian Sozzi received an e-mail from a client asking if he should be buying shares as the company is likely to generate a lot of hype following its viral commercial. Sozzi said that he cannot get behind the name, especially after the company announced that it will close five hundred locations on the day after the Superbowl. Even worse, according to Sozzi, Radio Shack has created a scenario in which customers who are hoping to visit a remodeled and visually appealing store will be disappointed. Sozzi visited a Radio Shack in New York City that did not resemble anything like the ones depicted in the commercial. “Radio Shack still resembles the Radio Shack that was in the add that they were tearing down and they just don't have the finances to do this massive re-modelling program.”

Here I am standing next to #SuperBowl star the new @Radioshack pic.twitter.com/wGePTAihpN

— Brian Sozzi (@BrianSozzi) February 3, 2014

Sozzi went as far as saying that Radio Shack is “producing some of the worst sales and margins results in the entire mall scene, even compared to J.C. Penney. You are getting the impression that their holiday quarter was really, really bad” and that the company is still trying to raise money which “would be very penalizing.”