Consumer Electronics & Appliances Stores Industry Profile

Companies in this industry sell household appliances, cameras, computers, and other electronic goods. Major companies Best Buy, RadioShack, and the retail operations of Apple, Conn's, and hhgregg (all based in the US), as well as Dixons (UK), Gome (China), and Yamada Denki (Japan).

Worldwide, emerging economies with growing middle classes have the greatest potential for growth in retail sales of consumer electronics and appliances. Brazil, India, and China are among the countries expected to see retail expansion. Central Europe, Africa, and the Middle East are also being targeted for growth.

The US consumer electronics and appliance store industry includes about 50,000 stores with combined annual revenue of about $100 billion, and low growth is forecast for the industry over the next two years. Challenges include slow growth in per capita income and consumer spending.

COMPETITIVE LANDSCAPE

Technological innovation and the need to replace or upgrade products drive demand, which also depends on consumer disposable income. Profitability for individual companies depends on the ability to generate store traffic and repeat business, as well as effective merchandising. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete effectively by offering specialized products or superior customer service. The industry is concentrated: the 50 largest companies account for 70 percent of sales.

Competitors of consumer electronics stores include discount stores, warehouse clubs, department stores, Internet and mail order retailers, and specialty office and computer ...