|Last Quarterly Update:||3/4/2013|
|SIC Codes:||5045, 5064, 5065, 5722, 5731, 5734, 5946|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry sell household appliances, cameras, computers, and other electronic goods. Major US companies include Best Buy, RadioShack, and the retail operations of Apple, hhgregg, and Conn's.
The US consumer electronics and appliance store industry includes about 50,000 stores with combined annual revenue of about $100 billion, and moderate growth is forecast for the industry over the next two years. Key growth drivers include increases in per capita income and consumer spending, and a growing need for automation and technological advancement.
Technological innovation and the need to replace or upgrade products drive demand. 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 retailers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments include computer equipment, TVs, and major household appliances. Computer hardware and software together account for about 30 percent of industry sales; televisions and major appliances account for about 15 percent each. Other products include video equipment (video recorders, DVD players, and electronic games), audio equipment (home and auto sound systems, home theater systems, and ...
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