Short circuit: Despite economic recovery, competition will stunt revenue growth

Consumer electronics and appliances are staples in American households and include a wide range of items, from DVD players to refrigerators. The Consumer Electronics Stores industry, which largely relies on discretionary purchases of such products, has been plagued by sluggish growth in per capita disposable income and consumer confidence over the past five years. Consumer confidence grew over the past five years, but not enough to lift the industry out of its mild decline due to fierce competition from online retailers, discount retailers and department stores. Even as revenue has fallen over the past five years, profit margins have recovered from their 2012 figures...purchase to read more.

Industry Statistics & Market Size
Revenue
$73bn
Annual Growth 12-17
-1.7%
Forecast Growth 17-22
Profit
Employment
323,449
Businesses
51,109

Industry Threats & Opportunities

  • Even as revenue has fallen over the past five years, profit margins have recovered
  • Revenue from CDs, DVDs and video games has suffered from changing technology
  • Consumers’ commitment to the environment will play a larger part in their selection of industry products
  • Industry Report - Industry SWOT Analysis Chapter

    The Consumer Electronics Stores industry is in the mature phase of its life cycle, characterized contracting enterprise figures and wholehearted market acceptance. This industry is estimated to underperform the growth of the US economy over the 10 years to 2022. During the period, industry value added (IVA), which is a measure of the industry's contribution to the US economy, is expected to decrease at an annualized rate of 0.6%. Meanwhile, the US economy is projected to grow at an annualized rate of 2.0% during the same period. As a result, the industry's share of the overall economy is shrinking slightly. At ...purchase to read more.

    Additional Insights for the Consumer Electronics Stores Industry

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

  • Proximity to key markets
  • Ability to control stock on hand
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Percentage of services conducted online in the Consumer Electronics Stores industry impact industry performance..

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    What's in this report

    What is the Consumer Electronics Stores Industry?

    Consumer electronics stores retail a range of new appliances, electrical goods and home entertainment products, such as dishwashers, TVs and computers. Many stores also offer repair services and some stores sell used goods. This industry does not include stores that primarily sell computers (Computer and Software Stores, IBISWorld Report 44312).

    Industry Products
  • Televisions and audiovisual equipment
  • Major appliances
  • Services and other
  • Computer hardware and software
  • Telephones, including mobile phones
  • Cameras and photographic equipment
  • Industry Activities
  • Retailing new household appliances (e.g. refrigerators, washing machines and ovens)
  • Retailing new personal appliances (e.g. hair dryers, curling irons and electric razors)
  • Retailing consumer electronics (e.g. radios, TVs, digital cameras, video games and computers)
  • Retailing mobile phones, smartphones and accessories
  • Offering repair services in conjunction with operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Percentage of services conducted online
  • External competition for the Consumer Electronic Stores industry
  • Number of households
  • Price of household appliances

  • Current Performance
  • Product mix shifts
  • Profit and external competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends
  • Profit outlook
  • Table: Consumer Electronics Stores Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Bed & Breakfast & Hostel Accommodations
  • Consumers

  • Key Selling Industries
  • Audio & Video Equipment Manufacturing
  • Computer Manufacturing
  • Electronic Part & Equipment Wholesaling
  • TV & Appliance Wholesaling
  • Vacuum, Fan & Small Household Appliance Manufacturing

  • Products & Services
  • Computer hardware and software
  • Televisions and audiovisual equipment
  • Telephones, including mobile phones
  • Major appliances
  • Services and other
  • Cameras and photographic equipment
  • Chart: Consumer Electronics Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 54
  • Consumers aged 55 to 64
  • Consumers aged 35 to 44
  • Consumers aged 65 and older
  • Consumers aged 25 to 34
  • Consumers under 25 years old
  • Chart: Major Market Segmentation for the Consumer Electronics 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 Consumer Electronics Stores

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Consumer Electronics 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 Consumer Electronics Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Blu-Ray
  • An optical disc format designed to display high-definition video and store large amounts of data.
  • Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Point Of Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Smartphone
  • A mobile phone that offers advanced PC-like capabilities.
  • What Our Customers Say

    Why buy this report?

    The Consumer Electronics 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 Consumer Electronics 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 Consumer Electronics 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 Consumer Electronics Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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