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 17,400 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 24 workers, and generates $4-5 million annually.

    • The electronics and appliance retail industry consists of 17,400 firms that employ about 425,000 workers and generate about $77 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.
    • Large companies include Best Buy and Pirch. Some large firms have international operations.
                                  Industry Forecast
                                  Electronics and Appliance Stores Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 17, 2022 - Less Holiday Spending on Electronics
                                  • Consumers are expected to spend a bit less on electronics this year after two years of elevated, pandemic-era electronics spending, according to market research firm NPD Group. However, some categories are expected to see steady demand. Shoppers are forecast to spend 27% more on smartphones in the 2022 holiday season than they did in 2020. Interest in smartwatches is the highest it’s been in the last three years. Consumers are spending more on mobile electronics, such as smartphones and smartwatches, as they plan to spend more time away from home. Other strong electronics categories include headphones and tablets.
                                  • Despite high inflation and rising interest rates, the National Retail Federation (NRF) expects consumer spending to remain resilient this holiday season. While the NRF acknowledges consumers are feeling the pinch of higher interest rates and inflation, it believes economic fundamentals – including job growth, rising wages, and savings accumulated during the pandemic - will sustain consumer spending. The NRF also points to US gross domestic product growth of 2.6% in the third quarter as evidence that the US economy hasn’t slipped into recession. The NRF forecasts holiday spending will rise between 6% and 8% over 2021 levels to reach between $942.6 billion and $960.4 billion. The outlook for 2022 is down from the 13.5% rise seen in 2021 but is better than the average 4.9% growth seen over the last decade.
                                  • Appliance maker Whirlpool said that it cut home appliance production by more than a third during its most recent quarter, according to The Wall Street Journal. The firm also reduced its profit outlook for 2022 by half amid rising costs and weakening consumer demand brought on by inflation. Whirlpool’s North American sales dipped 7.7% in Q3 compared to the same period in 2021.
                                  • Seasonally adjusted US sales at electronics and appliance stores fell 0.3% in October 2022 compared to September, according to the US Census Bureau. Unadjusted electronics and appliance store sales were down 12.3% in October year over year.
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