Computer & Software Stores Industry Profile

The US computer and software store (computer store) industry includes about 10,000 stores with combined annual revenue of about $16 billion. No major companies dominate the industry.

The industry includes companies that maintain physical retail locations and specialize in the sales of new computers, computer peripherals, and software, including game software. Some companies may offer computer repair and support services. Consumer electronics stores and Internet and catalog retailers are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

Business growth, personal income, and technological innovation drive demand. The profitability of individual companies depends on effective merchandising, competitive pricing, and reliable service. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by serving a local market, offering unique products, or providing superior customer service. The industry is labor-intensive: average annual revenue per worker is about $130,000.

The primary competitors for computer stores are consumer electronics stores and Internet and catalog retailers. Computer stores also compete with office supply stores, direct sales outlets of computer, peripheral, and software manufacturers, value-added resellers, mass merchandisers, and warehouse clubs.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold by computer stores are computers and peripherals (60 percent of revenue); software (10 percent); and video recorders, cameras, and electronic game devices (5 percent). Other products and services include parts and repair and installation. Companies may also offer technical support and training classes. Some retailers custom-build PC systems.

Computer stores are typically located in ...