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The Wall Street Journal reports that RadioShack, which invested in a Super Bowl commercial last weekend to promote the fact that it is overhauling the entire chain in an effort to make it more relevant, plans to close about 500 stores.

The company is not commenting on the report. If true, the move would cut the company's fleet of more than 7,000 stores by roughly seven percent.

The story notes that "RadioShack has been working with bankers from Peter J. Solomon Co. to boost its liquidity and with AlixPartners on its operational turnaround … Chief Executive Joe Magnacca, who took the company's helm in February 2013, has said he expected the turnaround to take several quarters."
KC's View:
My first feeling when I saw the RadioShack commercial was that the promise was great, but that delivering on the promise will be tougher. It'll be hard to convert 6,500 stores to a new, more relevant format with any level of speed … though I guess it'll be a little easier than converting 7,000.

It is an interesting challenge for RadioShack - not only do they have to convert its stores to a look that seems relevant in a world where the Apple Store has set the bar, but they also have to find ways to offer differentiated merchandise and even find segments where they can establish some sort of competitive advantage.

It won't be easy for RadioShack to avoid turning into Circuit City. But whatever it does, it better move fast.