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 14,300 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 $4-5 million annually.
- The electronics and appliance retail industry consists of 14,300 firms that employ about 440,000 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.
- Large companies include Best Buy and Pirch. Some large firms have international operations.
Industry Forecast
Electronics and Appliance Stores Industry Growth

Recent Developments
Nov 10, 2023 - Flat Growth Expected for Industry
- Weaker consumer spending and continued high price levels are expected to limit growth in the US electronics and appliances stores industry, which is projected to decline at about a 1% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. The slowdown follows industry volatility during the pandemic in 2020 (-17.9%), 2021 (25.4%), and 2022 (-1.5%).
- Consumers are expected to spend an average of $875 on gifts, decorations, food, and seasonal items for the winter holidays, according to the latest National Retail Federation (NRF) survey conducted by Prosper Insights and Analytics. The 2023 projection is $42 more than 2022 and aligns with the average holiday budget in the past five years. Consumers are expected to spend about $620 on gifts and $255 on seasonal decorations, candy, and food. About 92% of US adults will celebrate an event such as Christmas, Hanukkah, or Kwanzaa, and more than 40% of shoppers will begin their holiday shopping before November. Top shopping destinations include online (58%), department stores (49%), discount stores (48%), and grocery stores and supermarkets (44%). Popular gifts planned include gift cards (55%), clothing or accessories (49%), books, video games, or other media (28%), and personal care or beauty items (25%). Gifts of experience are becoming more popular with holiday shoppers, with 23% planning to give one, compared to 19% in 2021.
- Major US retailers are opening fewer stores and closing more stores in the US in the first half of 2023, reflecting a tough consumer environment, according to an analysis by The Daily on Retail reported by the National Retail Federation. Retailers announced plans for 3,420 new stores in the first six months of the year, a steep decline from 5,080 announced openings in the first half of 2022. Dollar stores, off-price retailers, discounters, and warehouse clubs have nearly 40% of announced openings, or about 1,300 stores. Meanwhile, the number of stores retailers plan to close was almost four times higher in the first and second quarters of 2023, at 3,365, compared to 895 in 2022. US retail bankruptcies reached 16 in the first half of the year, nearly triple over the same time last year. While the labor market is still healthy, inflation and higher interest rates are affecting consumers, who have been depleting their excess savings and no longer have a cushion of pandemic-related stimulus, according to the analysis.
- Consumer confidence levels fell in October 2023, marking three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index declined to 102.6 in October 2023 from 104.2 in September 2023. According to Dana Peterson, Chief Economist at The Conference Board, “Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.” Peterson added that the decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group. Plans to purchase autos and appliances rose in October 2023, while plans to buy a home within the next six months weakened.
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