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
Mar 14, 2024 - Producer Prices Rise, Employment Down
- According to the Bureau of Labor Statistics (BLS), producer prices for electronics and appliance retailers increased by over 4% in December 2023 compared to December 2022 and 11% compared to 2019. Employment in the industry has declined due to weaker demand and higher competition. In December 2023, employment fell by 4.6% compared to the previous year and 16.5% compared to 2019. Wages for electronics and appliance retailers grew by almost 6% from 2022, reaching an average of $24 an hour in Q4 2023, per the BLS.
- According to a recent ConsumerSignals survey by Deloitte, more discretionary categories, including recreation and entertainment, leisure travel, restaurants, and electronics, represented an estimated 22% share of consumer’s wallets in January, up slightly from a year ago. According to the Spending Intentions index, global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago. Spending intentions have gradually returned to their 2021 levels after inflation stunted global spending confidence. The survey also revealed that over 60% of survey respondents reported their finances had either remained the same or improved in the past year, up from 58% a year ago.
- Best Buy is ending sales of DVDs and Blu-rays in 2024, as the company says it is responding to a shift in how consumers watch movies and TV shows, according to Screen Crush. The retailer plans to continue to sell video games in physical formats. Best Buy released a statement to Variety concerning the exit, stating that the change “gives us more space and opportunity to bring customers new and innovative tech for them to explore, discover and enjoy.” While other retailers such as Target, Walmart, and Amazon continue to sell DVDs and Blu-rays, fewer consumers are buying the products. According to trade organization DEG, physical media market revenue in the US fell 28% in the first half of 2023 to $754 million.
- A new report from the National Retail Federation and Appriss Retail shows returns for the retail industry reached $743 billion in merchandise in 2023, according to Chain Store Age. The rate in 2023 was 14.5%, lower than the 16.5% in 2022 and 16.6% in 2021. The average retailer faces $145 million in merchandise returns for every $1 billion in sales. Online sales have a higher return rate; 17.6% of merchandise purchased online is returned compared to 10% for pure brick-and-mortar returns. Over 15% of holiday gifts are expected to be returned, totaling some $148 billion. Fraudulent returns account for 16.5% of total holiday returns. Types of return fraud in 2023 included returns of used, non-defective merchandise (49%), the return of shoplifted or stolen goods (44%), returns of goods purchased on fraudulent or stolen tender (37%), and return fraud from organized retail crime organizations (20%).
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