RadioShack Hoping for Some Magnacca Magic

Joe Magnacca has left Walgreens to undertake a turnaround at the helm of struggling electronics retailer RadioShack.The drugstore veteran replaces chief financial officer Dorvin Lively, who has been leading the company on an interim basis since previous chief executive officer James Gooch agreed to step down last September as third-quarter sales (ended Sept. 30, 2012) dropped 3.1% to $1.0 billion and same-store sales declined 1.6%. (See "RadioShack CEO Departs" in Related Articles.) The results marked the third consecutive quarter of losses for the company, which in the prior quarter had suspended stock dividends to save money."We believe [Magnacca] will be a catalyst for change at RadioShack in refining our merchandising strategies, reinvigorating the shopping experience for our customers and building sustainable value for our shareholders," RadioShack chairman Daniel Feehan said in a media release.Magnacca most recently was president of daily living products and solutions at Walgreens, and only one week earlier had been promoted from a corporate senior vice president to an executive vp. Prior to that, he had served as chief merchandising officer and then president of New York-based Duane Reade, which Walgreens acquired in 2010. (See "Walgreens Buys ...") Under Magnacca's guidance, both chains underwent transformations encompassing store design and branding, which the executive discussed in a keynote presentation at the 2012 Shopper Marketing Expo. (See "How to Reinvent the Store ..." in Related Videos.)Magnacca believes RadioShack's small-box format is an advantage in the consumer electronics space, particularly from a footprint and convenience standpoint. "My experiences will help the team identify and execute on new opportunities that can return this great company to a position of prominence," he said in the release.RadioShack last month also hired 19-year Target veteran Troy Risch as evp of operations and former Sam's Club exec Huey Long as evp of strategy and consumer insights, with responsibilities including marketing, business development and omnichannel. The company also ended a financially draining agreement to operate Target's mobile phone centers. (See "Target, RadioShack Split.")Walgreens, meanwhile, has tasked Bryan Pugh, vp of well experience deployment, to lead its merchandising group on an interim basis. Pugh was the retailer's top merchant before a 2011 restructuring gave ultimate responsibility to Magnacca."The strength of our leadership team allows us to continue moving forward with our key strategy of creating a well experience for our customers," Michael Polzin, divisional vp-corporate communications, said in a statement.

P2PI MEMBERS

JOIN P2PI

You May Also Like

Retailers Grow Retail Media Leadership

Hy-Vee Nabs CEO of Saatchi & Saatchi X as Chief Marketing Officer