RadioShack's Turnaround Plan Probably Won't Help Business

The company is currently closing more than 1,100 underperforming locations and remodeling some stores with modern technology.

But analyst Michael Lasser at UBS writes that he doesn't think RadioShack will be able to recover (via Ben Levisohn at Barron's).

RadioShack's new efforts to redesign stores are too little, too late, Lasser writes in a note to clients.

"Even if these stores (and the other remodeled locations) have seen better results, we don't think it will be enough to impact the entire chain," Lasser said. "Also, we are skeptical that the refreshed locations will provide a halo benefit to those stores that haven't been touched."

While the brand could improve the experience at a few stores, that doesn't mean that the overall business will improve, Lasser writes.

He also criticizes the company's strategy of adding new projects "to furnish a reputation of having the latest and greatest tech items."

"We think this has been akin to throwing things against the wall to see what sticks," Lasser said.

Lasser believes that competition within the industry is to blame.

"RadioShack's efforts to effectuate a turn-around have been hampered by a difficult operating environment," he writes.