Computer and Software Stores

The US computer and software store (computer store) industry includes about 10,000 stores with combined annual revenue of almost $20 billion. No major companies dominate the industry, which includes video game stores.

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

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold by computer stores are computers and peripherals (65 percent of revenue); software (20 percent); parts, repair, and installation services (7 percent); and video recorders, cameras, and electronic game devices (5 percent). Other products include audio equipment, office equipment, and used or refurbished equipment. Companies may also offer technical support and training classes. Some retailers custom-build PC systems.

The industry consists mainly of national and regional chains, along with independent retailers. Both chains and independent retailers may offer a “superstore” format, which can exceed 25,000 square feet. Specialized computer retailers, like video game stores, can range between 1,200 and 1,600 square feet. Computer stores are typically located in high traffic areas ...