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Companies in this industry sell household appliances, both major and small, from physical retail locations. Major US companies include ABC Appliance, Conn's, hhgregg, and PC Richard & Son.
The US household appliance store industry includes about 9,000 stores with combined annual revenue of about $15 billion.
Demand is driven by home sales, replacement due to product failure, and home remodeling. The profitability of individual companies depends on effective marketing and merchandising. Large companies can negotiate volume discounts from manufacturers. Small companies can compete effectively by offering superior customer service or specializing in product segments. The US industry is fragmented: the 50 largest companies account for about 40 percent of industry sales.
Major competitors include department stores (Sears); home improvement stores (Home Depot, Lowe’s); consumer electronics stores (Best Buy); warehouse clubs (Costco, Sam's); and mass merchandisers (Wal-Mart, Target). Besides its primary locations, Sears has a network of independent dealers that sell the company's Kenmore brand appliances in small markets.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments include kitchen, laundry, and small household appliances, and TVs. Kitchen appliances include refrigerators, freezers, dishwashers, and microwaves. Kitchen and laundry appliances are often referred to as "white goods." Other household appliances include room air conditioners, dehumidifiers, and vacuum cleaners. Appliance retailers may also sell consumer electronics, including video and audio equipment. Stores typically offer extended warranties and delivery, installation, or repair services.
Appliance retailers include regional chains and independent retailers. Both ...
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