CEO Joseph C. Magnacca announced the closings in a press release, noting that the company has undergone a comprehensive review, and needs to close the underperforming stores. "Our focus on the brand, our operations, and the in-store experience has been unfolding in parallel with a strategic review of our store footprint," Magnacca said in the press release. "Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles -- location, area demographics, lease life and financial performance -- in order to consolidate our store base into fewer locations while maintaining a strong presence in each market. The result of that review is our plan to close up to 1,100 underperforming stores. We will continue to have a strong, unmatched presence across the U.S. with over 4,000 stores including over 900 dealer franchise locations.
Magnacca noted that the company, which competes with the likes of Best Buy (BBY), Amazon (AMZN) and other electronics retailers, is in the midst of working on the five pillars of its turnaround, as it continues to work toward improving performance in 2014.
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