Electronics and Appliance Stores

The 12,583 Electronics and appliances retailers in the US sell electronics, appliances, and related products and services. Major revenue categories include computer products; TVs and other video equipment; household appliances; telephones (including cell phones); audio equipment; and photographic equipment and supplies. Firms may provide or sell warranty, repair, delivery, or installation services. The industry includes national and regional chains and independent operators.

Rapid Changes in Technology

Advances in technology have created an ever-evolving marketplace for consumer electronics.

Competition from Alternative Sources

Electronics and appliance retailers compete with a variety of alternative sources, including warehouse clubs, department stores, home improvement stores, mass merchandisers, manufacturers, and online-only retailers.

Jul 22, 2026 - Electronics Retailers Eye TV Replacement Cycle

• Best Buy's exclusive launch of premium RGB LED televisions could provide a modest boost to the retailer as new technology helps spur a long-awaited TV replacement cycle, according to the Minnesota Star Tribune. Analysts estimate 49 million televisions were purchased during the pandemic, many of which are now reaching the typical five- to seven-year replacement window. The new technology, coupled with Best Buy's exclusive one-year retail partnership and installation services, may help drive store traffic and sales of high-end TVs. However, adoption is expected to be gradual because of premium pricing, and electronics retailers continue to face uneven consumer demand and intense competition from Amazon, Costco, and Home Depot. The article suggests innovation is improving sales prospects, but retailers will still need compelling in-store experiences, competitive pricing, and value-added services to capture replacement demand.
• The CNBC/NRF Retail Monitor, powered by Affinity Solutions, showed electronics and appliance stores continued to outperform the broader retail sector in June despite a slight monthly slowdown. Sales were essentially flat month over month (-0.01%) but increased 14.16% year over year, exceeding the 9.41% gain for total retail sales excluding autos and gas stations. Strong annual growth suggests consumers continued to invest in electronics and appliances, supported by summer promotions, early back-to-school shopping, and a resilient labor market. However, the lack of monthly growth indicates demand may be stabilizing after recent gains. While favorable year-over-year comparisons partly reflect weak sales in June 2025, the results point to continued consumer demand for higher-ticket electronics, although retailers are likely to face ongoing pressure to remain competitive on pricing and promotions.
• Strong global smartphone demand in early 2026 provided a modest boost for US electronics and appliance stores, though rising supply chain and component costs may pressure pricing and consumer demand later this year, according to a report on Omdia data in Twice. The global smartphone market grew 1% year over year in Q1 2026, led by strong demand for Samsung’s Galaxy S26 and Apple’s iPhone 17. However, mobile DRAM and NAND memory prices surged roughly 90% quarter over quarter, increasing production costs and prompting many vendors to consider price increases, reduced promotions, and tighter inventory strategies. For US electronics retailers, continued smartphone demand could support store traffic and sales, but higher retail prices and inflationary pressure may increase consumer price sensitivity and slow upgrade cycles, particularly for mid-range devices.
• A recent Wall Street Journal report highlights growing legal and operational risks for US retailers, including appliance and electronics retailers, tied to tariff policy. Costco faces a proposed nationwide class-action lawsuit seeking refunds for tariff-related price increases after tariffs were ruled unlawful. The Court of International Trade has ordered the government to refund approximately $166 billion in tariff revenue, though timing and distribution remain uncertain. According to the WSJ, retailers used a mix of price increases, supplier negotiations, and cost absorption, making consumer-level refunds difficult to calculate. With more than 2,000 related cases filed, the situation underscores how tariffs create pricing complexity, legal ambiguity, and potential financial liability across the US retail industry.

Industry size & Structure

The average electronics and appliance store operates out of 1 to 2 location, employs about 32 workers, and generates $7 million annually.

• The electronics and appliance retail industry consists of 12,583 firms that employ about 397,000 workers and generate about $92 billion annually.
• Household appliance stores account for 23% of industry revenue and 30% of stores. Electronics stores account for 77% of industry revenue and 70% of stores.
• The industry is concentrated; the top 50 companies account for nearly 75% of industry revenue.
• The industry includes national and regional chains and independent operators.
• Best Buy is one of the largest electronics retailers in the US. Some large firms have international operations.