Electronics and Appliance Stores NAICS 449210

Sep 19, 2025 - Best Buy Responds to Cautious Spending with Delivery Push

• According to a report in The Street, Best Buy reported a 1.6% year-over-year increase in comparable sales for Q2 2025, its strongest in three years, as it faced declining foot traffic and uneven category performance. Growth was driven by demand in gaming, computing, and mobile tech, while sales in appliances and home theater products lagged due to housing market challenges and cautious consumer spending. In response, Best Buy launched a strategic partnership with Uber Eats to offer direct-to-door delivery of electronics and tech essentials. Customers can now order through the Uber Eats app, with promotional discounts available through late September. The move reflects a broader shift in retail toward convenience-driven, omnichannel strategies. For consumer electronics retailers, adapting to changing buyer behavior beyond traditional store visits, especially in a high-interest, low-housing-turnover environment, is critical.
• 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.

• Consumer mood indicators in the US declined, signaling growing economic unease. The Consumer Confidence Index fell 1.3 points in August 2025, driven primarily by younger consumers under 35, while confidence among those over 55 improved. Despite the dip, overall confidence remained consistent with recent months. Separately, the University of Michigan’s Consumer Sentiment Index dropped to 55.4 in preliminary September data, down from 58.2 in August and 21% below September 2024 levels. Inflation expectations held steady, though concerns about pricing pressures, particularly from tariffs, persist. These indices reflect consumers’ outlook on personal finances and the broader economy, serving as key predictors of future spending behavior.
• 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.