Electronics and Appliance Stores NAICS 4492

May 20, 2025 - Negative Growth Projected

• Sales for the US electronics and appliance stores industry are projected to grow at a CAGR of -0.16% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. The forecast said retail spending could soften with the growth of spending on consumer services. Another factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation.
• According to a new report in Retail Dive, the retail sector had 64,319 job cuts in the first four months of 2025, a nearly 300% increase year over year, and the second-leading industry in job cuts. The Challenger, Gray & Christmas report found retail job cuts were up almost 80% year over year in April 2025, reaching 7,235. According to Andrew Challenger, an SVP at the consulting firm, “Generally, companies are citing the economy and new technology. Employers are slow to hire and limiting hiring plans as they wait and see what will happen with trade, supply chain, and consumer spending.” The US lost 603,000 jobs in total across all industries, the most since 2020, when over one million job cuts occurred. According to the report, nearly half of the cuts in the first four months were attributed to job eliminations by the Department of Government Efficiency (DOGE).

• According to Supply Chain Dive, Best Buy CEO Corie Barry said new tariffs imposed by the Trump Administration are likely to drive up prices for consumer electronics, which will weigh on the chain’s sales and future growth. In recent months, the Trump administration has enacted tariffs on imports from China and a tariff on imported steel and aluminum. New tariffs on imports from Canada and Mexico are set to roll out fully in April. China and Mexico are the top two sources for products sold by the retailer. “The consumer electronics supply chain is highly global, technical, and complex,” Barry said. “While Best Buy only directly imports 2% to 3% of our overall assortment, we expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”
• According to a new CNET survey, nearly 40% of US adults feel pressured to purchase products such as smartphones, laptops, and home appliances in anticipation of tariff-related price increases, and nearly 20% have made purchases to avoid higher product costs. Since he took office, President Donald Trump has enacted numerous tariffs including 20% tariffs on imports from China, a 25% tariff on imported steel and aluminum, and 25% tariffs on imports from Canada and Mexico expected to roll out fully in April. The survey found that smartphones and laptops are the priority for shoppers planning to purchase tech products ahead of the tariffs. Home appliances, TVs, and smart home devices are also on consumers’ lists. The majority of US adults report they are adjusting their budgets to prepare for tariff-related price hikes by cutting back on non-essential spending like dining out and travel (40%) and saving more from each paycheck (19%).