Electronics and Appliance Stores NAICS 449210

Jan 19, 2026 - Consumer Tech Growth Modest

• US consumer technology sales are projected to reach $112 billion in 2026, a modest 0.2% increase, following a 2.2% decline in the latter half of 2025 due to financial pressures and softened demand, according to a Circana Future of Technology report. Growth is being driven primarily by computers, with notebooks and desktops benefiting from replacement cycles and the end of Windows 10 support, adding over $600 million in revenue. Tablets will contribute an additional $200 million, while emerging products like smart glasses show niche potential. Spending patterns are split: higher-income consumers sustain purchases, while lower- and middle-income buyers pull back. Average prices are expected to rise roughly 3% due to both a shift toward higher-end products and increased component costs, such as memory. Despite economic uncertainty, replacement needs and innovative product offerings will continue to support industry growth.
• While five services industries reported contraction in December, 11 industries reported growth, including the Retail Trade industry, according to an ISM Services PMI Report. Executives in the Retail Trade industry reported increases in business activity, new orders, employment, prices paid for materials and services, and inventories, along with decreases in new export orders, imports, and order backlogs in December. Other industries reporting growth during the period were Finance & Insurance; Accommodation & Food Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Mining; Health Care & Social Assistance; Information; Wholesale Trade; Public Administration; and Utilities. Industries reporting contraction during the period include Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Construction. Overall economic activity in the services sector continued to expand in December, registering 54.4%.

• US consumers are starting holiday shopping earlier in 2025, with tech and electronics emerging as top spending categories, according to an analysis of Circana’s 2025 US Holiday Purchase Intentions in Twice. While clothing ranks highest in purchase intent, electronics lead in dollar spend, reflecting the higher price points of items such as headphones, tablets, and notebooks. Headphones remain the fastest-growing product, while fitness trackers and health monitors are also gaining traction. TVs, traditionally a holiday staple, are less prominent due to recent replacement cycles. For electronics and appliance retailers, the survey signals strong demand but moderated spending compared to last year, as consumers balance higher prices and tariff-related cost pressures with creative financing options like “buy now, pay later.”
• Preliminary January 2026 data from the University of Michigan’s Surveys of Consumers show the Index of Consumer Sentiment rose to 54.0, up from 52.9 in December, marking the highest reading since September 2025 and a 2.1% monthly gain, though still about 24.7% below January 2025 levels. The Current Economic Conditions Index climbed to 52.4 (up 4.0 month over month, down 30.2 year over year) and the Index of Consumer Expectations rose to 55.0 (up 0.7 month over month, down 20.9 year over year). Year-ahead inflation expectations held at 4.2%, the lowest since January 2025 but above last year’s 3.3%, while long-run expectations ticked up to 3.4%. Director Joanne Hsu noted sentiment improved mainly among lower-income consumers but fell for higher-income households, with ongoing concerns about high prices and a softening labor market.