Electronics and Appliance Stores NAICS 4492

Mar 21, 2025 - Tariffs Expected to Drive Up Prices

• 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 the past two months, the Trump administration has enacted 20% tariffs on imports from China and a 25% tariff on imported steel and aluminum. New 25% 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%).

• 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.”
• 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.