No power: High-margin product segments will slow declines, but overall contraction will continue

The Consumer Electronics Stores industry has experienced weak sales over the past five years, due to anemic growth in per capita disposable income and consumer confidence, as well as increased external competition from mass merchandisers and online retailers that offer goods at lower prices. This has resulted in declining sales of items retailed by this industry. Consumers spending on industry goods has dropped each year since 2012, as a hesitant consumer base has become more comfortable purchasing industry products online. In the five years to 2022, the industry is forecast to continue its decline. Revenue will continue to fall as per capita disposable income continues its tepid growth and consumer confidence falls over the period...read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 12-17
-1.2%
Forecast Growth 17-22
Profit
Employment
64,182
Businesses
7,845

Industry Threats & Opportunities

  • With online shopping and big-box retailers gaining in popularity, revenue has declined
  • E-commerce retailers are swaying many time-strapped shoppers to purchase products online
  • Consumers across all age groups will likely make less of the large purchases that drive industry revenue
  • Industry Report - Industry SWOT Analysis Chapter

    The Consumer Electronics Stores industry is in the decline stage of its life cycle. Over the 10 years to 2022, industry value added (IVA), which measures the industry's contribution to the Canadian economy, is expected to decrease at an average annual rate of 0.1%. This rate indicates that the industry is in the decline phase of its life cycle, as the total Canadian economy is estimated to grow at a much faster average annual rate of 1.8% over the same period. The industry's decline can be largely attributed to increasing external competition and the waning popularity of many industry products. TVs...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

  • Ability to control stock on hand
  • Attractive product presentation
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Demand from e-commerce and online auctions 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?

    This industry retails a range of appliances, electrical goods and home entertainment products, such as dishwashers, TVs and computers. Industry operators purchase goods from manufacturers or wholesalers, which are then sold to the general public in stores or online. New purchases dominate the market, but many stores also offer repair services, while some sell used goods. The industry excludes establishments primarily engaged in retailing computers, software and camera supplies.

    Industry Products
  • TV and audiovisual equipment
  • Computer hardware and software
  • Appliances
  • Cameras and photo equipment
  • Telephones, including mobile phones
  • Industry Activities
  • Retailing consumer electronics (e.g. radios, televisions, digital cameras, video games and computers)
  • Retailing mobile phones, smartphones and accessories
  • Retailing new household appliances (e.g. refrigerators, washing machines and ovens)
  • Retailing new personal appliances (e.g. hair dryers, curling irons and electric razors)
  • 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
  • Demand from e-commerce and online auctions
  • Housing starts
  • Number of adults aged 20 to 64

  • Current Performance
  • Demand conditions and external competition
  • Industry composition and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Demographic and economic trends
  • Energy-efficient appliances
  • Industry profit
  • 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
  • Consumers in Canada

  • Key Selling Industries
  • Audio & Video Equipment Manufacturing in Canada
  • Computer Manufacturing in Canada
  • Electronic Part & Equipment Wholesaling in Canada
  • Major Household Appliance Manufacturing in Canada
  • TV & Appliance Wholesaling in Canada

  • Products & Services
  • Computer hardware and software
  • Telephones, including mobile phones
  • Appliances
  • TV and audiovisual equipment
  • Cameras and photo equipment
  • Chart: Consumer Electronics Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 30 to 39
  • Consumers aged 40 to 54
  • Consumers aged 55 to 64
  • Consumers aged 29 and younger
  • Consumers aged 65 and older
  • 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
    ProfitPurchasesWagesOther
  • 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 Canada Ltd., The Source Electronics Inc.,
  • Table: Best Buy Canada Ltd. - financial performance
  • Table: The Source Electronics Inc. - 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
    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?

    IBISWorld’s Consumer Electronics Stores market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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