Electronics and Appliance Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 13,600 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.
Industry size & Structure
The average electronics and appliance store operates out of a single location, employs about 20 workers, and generates $6-7 million annually.
- The electronics and appliance retail industry consists of 13,600 firms that employ about 416,000 workers and generate about $93 billion annually.
- Household appliance stores account for 24% of industry revenue and 30% of stores. Electronics stores account for 76% of industry revenue and 70% of stores.
- The industry is concentrated; the top 50 companies account for 72% 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.
Industry Forecast
Electronics and Appliance Stores Industry Growth
Recent Developments
Jan 22, 2025 - Sales, Employment Up
- Sales for electronics and appliance stores grew by 1.8% in November 2024 year over year and were up 21.6% from the previous month, according to the latest data from the US Census Bureau. Producer inflation for the industry rose 1.8% in November 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Employment increased 1.1% in November 2024 year over year, while average wages fell by 0.8% during the period, per the BLS. Economic activity in the services sector expanded in December 2024 for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries.
- In mid-2025, Best Buy will be launching a new third-party digital marketplace in the US to give customers an expanded assortment of products, according to Modern Retail. The company is partnering with Mirakl, a software platform, to allow third-party sellers to seamlessly integrate their products on the site and app. The company has operated a third-party marketplace before, from 2011 to 2016, to compete with Amazon but the site created confusion among buyers about where to return merchandise and accounted for only 1% of Best Buy’s revenue. The new marketplace is expected to offer electronics products as well as complementary products and new categories such as wellness. The company expects to attract sellers interested in reaching Best Buy’s more than 200 million online customers. Best Buy CEO Corie Barry said the company has worked to blend its in-store and digital experiences to benefit the customer. She noted, “We’re really working hard to make sure we, uniquely to Best Buy, bring to life a marketplace that we hope serves some of our consumers’ broader needs.”
- A new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals shows the tariffs could increase costs of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- Retailers are facing a nearly 30% increase in the rate of returns compared to last year, which could cut overall profit margins on the industry’s $1.2 trillion in global sales, according to Salesforce data reported in PYMNTS. Shoppers have already returned $122 billion in merchandise, per the report. According to Salesforce’s Consumer Insights Director Caila Schwartz, “Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern.” AI tools are expected to be important in minimizing revenue losses on returns and reengaging with shoppers, per Schwartz. Returns volumes have increased in part due to the growth in online shopping and shopper practices such as “bracketing,” involving ordering multiple sizes or variations with the intention to return unwanted items, according to Hannah Bravo, head of Loop Returns. She said retailers are taking different approaches to managing returns such as offering longer return windows, charging fees related to item returns, and letting customers keep low-value items instead of returning them.
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