Electronics and Appliance Stores NAICS 449210

Nov 19, 2025 - Holiday Shoppers to Prioritize Tech Purchases: Circana

• 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.”
• US consumer sentiment weakened in October and November 2025, putting pressure on electronics and appliance retailers that rely on household discretionary spending. The University of Michigan’s Index of Consumer Sentiment fell 6.2% month-over-month to 50.3, nearly 30% below last year, while the Expectations Index dropped 36.3% annually to 49. Inflation expectations rose to 4.7% for the year ahead, and the Conference Board’s Consumer Confidence Index slipped to 94.6, with short-term expectations down to 71.5 despite stronger current conditions. With more than half of consumers anticipating higher interest rates, households are likely to postpone or scale back big-ticket purchases such as appliances, televisions, and home electronics. For retailers, this environment points to slower sales growth, tighter inventory management, and heightened price sensitivity, underscoring the need for promotional strategies and financing options to sustain demand in a cautious consumer climate.

• According to US Census Bureau data reported by Reuters, sales at electronics and appliance stores rose 0.3% in August 2025 compared to the previous month. This contrasts with an increase in total retail sales of 0.6% in August from July, a result that was slightly higher than the monthly growth expectation of economists polled by Reuters of 0.2%. Retail sales were 5% higher in August on a year-over-year basis. Core retail sales, which exclude automobiles, gasoline, building materials, and food services, were up 0.7% unrevised in August 2025 from the previous month. According to Stephen Stanley, chief US economist at Santander US Capital Markets, consumers may be accelerating the timing of their shopping to take advantage before tariff-related price hikes fully kick in.
• Best Buy’s comparable sales rose 1.6% in fiscal Q2 2026, its strongest growth in three years, signaling cautious but improving demand for consumer electronics, according to CNBC. Comparable sales in the US increased 1.1%, driven by mobile phones, gaming, and computing, while appliances and home theater lagged. Revenue reached $9.44 billion, above analyst expectations, and adjusted EPS came in at $1.28 versus $1.21 expected. Despite exceeding expectations, management maintained its full-year guidance of $41.1–$41.9 billion in revenue and EPS of $6.15–$6.30, citing tariff uncertainty and uneven consumer behavior. CEO Corie Barry highlighted strong laptop sales, the highest Q2 unit volume in 15 years, and robust demand for the Nintendo Switch 2 launch, underscoring the importance of innovation cycles. For electronics retailers, the results suggest resilience in core categories and opportunities tied to new product launches, but also ongoing margin pressures from tariffs and consumer deal-seeking behavior, requiring careful inventory and promotional strategies.