Best Buy - Competitors

Best Buy Competition

Now Viewing Best Buy's competition in: Consumer Electronics Stores (primary)

Recent Developments

Car Stereo Poll Yields Mixed Results - The struggling US economy isn't hurting demand for aftermarket car stereo products, but it may be lowering the amount consumers are willing to spend. The Consumer Electronics Association (CEA) predicts that about 20 percent of US consumers will buy car stereo equipment in 2008, signaling strong demand for consumer electronics stores. However, the amount these consumers plan to spend has fallen from an average of $590 in 2007 to $339, which could result in lower profits per sale.

2007 Profitable for Consumer Electronics Stores - The US' top 100 consumer electronics retailers posted 10 percent sales growth in 2007 compared to 2006, according to This Week in Consumer Electronics (TWICE). The growth follows 7 percent growth in 2006 compared to 2005. Best Buy is the largest consumer electronics retailer, though mass-merchandisers Wal-Mart and Target gained ground in 2007.

Research Ranks Consumer Electronics Chains on Preferences - What stores consumers visit to buy electronics can greatly impact the success of consumer electronics retailers. Based on criteria such as price and convenience, chain store Best Buy is the consumer favorite, according to BIGresearch. Best Buy is preferred by 31 percent of consumers, compared to 17.6 percent who prefer Wal-Mart. Over 70 percent of consumers say that price is of primary importance.

Competitive Landscape

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, and effective merchandising. Large companies can offer wide selections of products and low prices. Small companies can compete effectively by offering specialized products, technological expertise, or superior customer service. Average annual revenue per employee is about $200,000. Competitors include mass merchandisers, warehouse clubs, department stores, Internet and mail order retailers, specialty office and computer retailers, and some manufacturers.

Full Industry Overview For Consumer Electronics Stores

Consumer Electronics Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures of electronic entertainment, musical instruments, and home computers are forecast to grow at an annual compounded rate of 6 percent between 2007 and 2012.

Growth in Consumer Spending of Consumer Electronics Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.