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.

Sep 22, 2026 - Best Buy Signals Improving Electronics Outlook

• Best Buy’s second-quarter results point to an improving outlook for US electronics retailers, supported by replacement cycles, product innovation, and stronger omnichannel demand. Domestic comparable sales rose 4.5%, with computing, home theater, and emerging categories such as AI glasses and health rings leading growth. TV sales increased more than 10%, while major appliances returned to slight growth. The results suggest consumers remain willing to spend on technology when products need replacing or offer meaningful innovation, although shoppers remain value-conscious and responsive to promotions. Best Buy raised its full-year comparable-sales outlook to 1.9%-3.0%, reinforcing expectations for continued category growth. However, rising computing prices, softer unit volumes, and comparisons against strong prior-year PC sales could temper growth later in the year.
• Weakening consumer confidence points to a more cautious outlook for US electronics and appliance retailers, where many purchases are discretionary and easily postponed. The University of Michigan’s September Consumer Sentiment Index fell 7.5% to 47.8, signaling weaker willingness to spend. Current Economic Conditions slipped 1.9% to 50.9, suggesting households remain under financial pressure, while Consumer Expectations dropped 11.1% to 45.8, indicating greater concern about future finances that could delay big-ticket purchases. The Conference Board’s August Consumer Confidence Index edged down to 89.4. Its Present Situation Index rose to 121.2, offering some near-term support, but the Expectations Index fell to 68.2, reinforcing a softer outlook for discretionary demand. Retailers may increasingly depend on promotions, financing, and replacement-driven purchases.
• 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.
• Electronics and appliance stores were the strongest-performing retail category year over year in July, despite a slight monthly decline, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions. Sales fell 0.05% from June but surged 12.04% from July 2025, far outpacing total retail sales growth of 5.15% and core retail growth of 4.72%. The category narrowly led digital products, which rose 12.02% year over year, and also exceeded gains for health and personal care stores (+10.07%), general merchandise (+8.3%), and clothing and accessories (+6.55%). Electronics retailers also sharply outperformed furniture and home furnishings (+2.71%), while building and garden supply (-1.2%) and sporting goods, hobby, music, and book stores (-3.01%) declined. The results indicate particularly strong annual demand for electronics and appliances, although the slight monthly dip suggests momentum moderated in July.

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.