On the line: High external competition will impede industry growth

The Computer Stores industry will experience only slight decline over the five years to 2018, as computers remain essential household and personal products. Despite the growing ubiquity of these products, retailers of computers, peripherals and consumer electronics have experienced some onerous challenges over the past five years. Rapid technological change, increased production efficiency and a highly globalized supply chain have lowered computer retail prices, hampering the industry's revenue potential. The Computer Stores industry is expected to grow slowly over the five years to 2023. Competition from online distributors will continue to erode the industry's customer and revenue base, augmented by a growing number of smartphone devices and e-commerce applications...purchase to read more.

Industry Statistics & Market Size
Revenue
$29bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
90,148
Businesses
18,373

Industry Threats & Opportunities

  • The domestic personal computer market is showing signs of saturation
  • The rise of e-commerce has precipitated strong external competition
  • The retail sector is shifting toward an online economy at the expense of brick-and-mortar enterprises
  • Industry Report - Industry Investment Chapter

    Industry operators are expected to spend $0.05 on capital for every dollar spent on labor. Capital expenditure in this industry is typically dedicated to fixtures and fittings, cash registers and point-of-sale (POS) systems. Over the last 10 to 15 years the industry has undergone considerable change in the implementation of computer scanning technology, which simplified labor tasks and minimized the level of human error in processing consumer purchases. POS systems have also enabled industry operators to computerize their inventory control which has resulted in better stock control and cost efficiencies.Labor costs are incurred though customer service, maintaining store displays and control of inventory stock levels. Bei...purchase to read more.

    Additional Insights for the Computer Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer Stores Industry are

  • Ability to control stock on hand
  • Experienced work force
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Consumer price index and Price of computers and peripheral equipment in the Computer Stores industry impact industry performance..

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    What's in this report

    What is the Computer Stores Industry?

    This industry includes operators that mainly retail desktops, notebook computers and software, as well as accessories like printers, scanners and keyboards. These goods are generally purchased from domestic and international manufacturers and wholesalers and then sold to end consumers, including households and businesses.

    Industry Products
  • Computers
  • Printers and peripherals
  • Software
  • Industry Activities
  • Retailing computers
  • Retailing computer peripherals (e.g. printers, monitors, keyboards, mice and speakers)
  • Retailing computer software
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer price index
  • Price of computers and peripheral equipment
  • Private investment in computers and software
  • Per capita disposable income

  • Current Performance
  • Falling retail prices
  • Saturation in the PC market
  • Pressure from online competition
  • Declining physical presence
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition accelerates
  • Switching it up
  • Structural trends
  • Table: Computer Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Advertising Agencies
  • Consumers

  • Key Selling Industries
  • Computer & Packaged Software Wholesaling
  • Computer Manufacturing
  • Computer Peripheral Manufacturing

  • Products & Services
  • Printers and peripherals
  • Computers
  • Software
  • Chart: Computer Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 65 and older
  • Consumers under the age of 45
  • Consumers aged 45-64
  • Businesses
  • Other
  • Government
  • Chart: Major Market Segmentation for the Computer Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Computer Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer Stores Industry

  • Industry Globalization
    Apple Inc., Best Buy Co. Inc.,
  • Table: Apple Inc. - financial performance
  • Table: Best Buy Co. Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Computer Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer Confidence Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Brick-And-Mortar
  • Stores that have a physical presence, as opposed to online retailers.
  • Comparable Store Sales
  • A measurement of store growth in relation to existing stores, minus the effect of new store openings.
  • Point-Of-Sale (Pos)
  • The location where a transaction occurs at a retail establishment or store.
  • Smartphone
  • A mobile phone that offers advanced PC-like capabilities.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • What Our Customers Say

    Why buy this report?

    The Computer Stores industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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