Consumer Electronics & Appliances Stores Industry Overview
Excerpt from Consumer Electronics & Appliances Stores Report
Companies in this industry sell household appliances, cameras, computers, and other electronic goods. Major companies include Best Buy, Conn’s, Fry's Electronics, GameStop, and the retail operations of Apple (all based in the US); as well as Dixons Carphone (UK), Fnac Darty (Belgium) GOME (China), the CECONOMY-owned Media Markt and Saturn brands (Germany), and Yamada Denki (Japan).
The competitive landscape for US consumer electronics (CE) retailers has changed dramatically over the past decade amid rapidly evolving technology and the growth of e-commerce. Of the 2006 Top 100 CE retailers, some 20% are no longer in business, including Circuit City, which ranked third at the time. Others, including market leader Best Buy, have struggled. Video game seller GameStop is closing stores and has put itself up for sale after a shift to digital downloads and streaming led to a steep decline in store sales. While Best Buy remains the nation’s top consumer electronics retailer, online giant Amazon (ranked No. 18 in 2006) is a close second, with more than $30 billion in CE sales, according to the latest annual rankings from TWICE. Rounding out the top five are Walmart, Apple, and Costco. Competition from alternative retail channels has contributed to the 12% decline in sales for electronics and appliances stores since 2007.
Products, Operations & Technology
Major product segments include computers and peripherals (about 25% of industry revenue); telephones (15%); major household appliances (15%); and TVs (10%). Other products include video equipment (video recorders, DVD players, and electronic games); audio equipment (home and auto sound systems, home theater systems, and accessories); cameras and photography equipment; and computer software. The industry typically refers to large appliances other than TVs, including such items as refrigerators and washing machines, as "white goods." Consumer electronics and appliance stores may also generate revenue from installation and repair or maintenance agreements, along with resale of third-party wireless phone, internet access, or satellite TV or radio service.