Electronics and appliance stores
Total Sector Spending
Overall spending trends across an industry sector
What's the story behind the data?
Electronics is a hit-driven, promotion-dependent category dominated by Best Buy’s 92-95% monopoly. December surged +20% on holiday gifting and AirPods/gaming consoles. April spiked +15% on tax refunds and tariff front-running (consumers buying before prices rose). Then May crashed -19%—the worst month in the data set—as post-purchase exhaustion and tariff sticker shock froze demand. September recovered slightly to +3%.
Best Buy’s dominance is absolute. P.C. Richard & Son holds 5% with regional density (Northeast) and commands $630-730 AOV vs. Best Buy’s $180-220. Newegg ($100-200 AOV) serves online PC builders. Sony, Bose, and BrandsMart are rounding errors. If you’re competing against Best Buy without geographic or product differentiation, you’re irrelevant.
Millennials (+7.5%) drive the category—ages 28-43 upgrading home offices, gaming setups, and smart home tech. The $100-125K income bracket (+11.5%) is the sweet spot—affluent enough to buy premium but still shopping sales. Gen X (-0.7%) and Boomers (-2.3%) are negative, likely stretching old devices longer. Gen Z (+2.1%) shows modest growth on lower-ticket items (earbuds, accessories).
Implications by Audience
FP&A / Strategy Teams
- Plan for extreme promotional volatility — December (+20%) and April (+15%) capture 50%+ of annual growth, while May (-19%) wipes out gains. Inventory planning must account for boom-bust cycles, not steady demand.
- Millennials ($100-125K income) are your only growth segment — +7.5% generation, +11.5% income bracket. Gen X (-0.7%) and Boomers (-2.3%) are replacing less frequently. Focus merchandising on Millennial life stage: home offices, gaming, smart home.
- Best Buy’s 92-95% share is unbreakable without differentiation — P.C. Richard succeeds with Northeast density and premium service ($630-730 AOV). Newegg owns PC enthusiast niche. Broad-based competition against Best Buy’s scale and Geek Squad is futile.
- May’s -19% crash = tariff-driven demand destruction — April’s +15% reflected panic buying before tariff implementation. May’s collapse shows consumers exhausted budgets and paused. Future tariff changes will create similar whiplash.
- Replacement cycles dominate demand — smartphones (2-3 years), laptops (3-4 years), TVs (5-7 years) drive category rhythm. Without new product cycles (iPhone launch) or external catalysts (stimulus, tariffs), category stagnates.
- High-AOV retailers defend margin in down cycles — P.C. Richard’s $630-730 AOV vs. Best Buy’s $180-220 shows premium service/delivery commands pricing power even when category contracts.
Marketing and Brand Teams
- Concentrate spend in Q4 (holiday) and April (tax refunds) — December and April deliver disproportionate volume. May-August dead zone wastes budget. Go dark or shift to retention/service messaging outside peak windows.
- Millennial targeting with smart home/gaming/productivity angles — +7.5% from ages 28-43 upgrading home offices post-pandemic, building gaming setups, and adding smart home devices. Creative should emphasize lifestyle integration, not just specs.
- $100-125K income bracket is your revenue engine — +11.5% growth, premium enough to buy quality but still promotional-sensitive. Target messaging around value (“best in class for the price”), not luxury.
- Gen X and Boomer decline signals replacement cycle stretch — -0.7% and -2.3% means older demographics keeping devices longer. Trade-in programs and durability messaging may accelerate replacement better than new feature promotion.
- Best Buy’s scale requires niche positioning — if you’re not Best Buy, own a vertical (P.C. Richard’s Northeast premium service) or customer segment (Newegg’s PC builders). Mass-market electronics retail requires Best Buy-level scale.
Investors
- Best Buy is the only scaled play — 92-95% share, Geek Squad moat, omnichannel execution. Competitors are regional or niche. Own Best Buy or don’t own the category.
- Play seasonal surges with options — December and April create predictable pops. May’s -19% crash creates shorting opportunity if you time tariff/promotional cycles.
- Millennial spending (+7.5%) supports recovery — prime working years, tech-forward lifestyles, home office investments. Retailers positioned for this demographic (gaming, smart home, productivity) outperform legacy appliance focus.
- Tariff sensitivity creates policy risk — April’s +15% and May’s -19% swing show category vulnerability to trade policy. Monitor White House announcements for short-term trade setup.
- Replacement cycles = structural ceiling — without new product categories (metaverse, AR glasses) or forced upgrades (5G, Wi-Fi standards), growth limited to replacement demand. Innovation-driven categories (smartphones, gaming) outperform commodities (TVs, appliances).
Policy Makers
- Tariff timing destroyed demand — April’s +15% panic buying followed by May’s -19% crash shows policy uncertainty is more damaging than tariffs themselves. Predictable trade policy would smooth volatility.
- Electronics tariffs hit $100-125K households hardest — this income bracket (+11.5%) drives category but is price-sensitive. Tariff costs compress discretionary budgets for middle-class consumers upgrading home offices and family tech.
- Gen X and Boomer decline signals affordability pressure — -0.7% and -2.3% from cohorts who should be replacing aging devices. They’re stretching device lifespans, suggesting budget strain from fixed costs (housing, healthcare).
Top Brands by Market Share
Leading brands ranked by market share within sector
Trends + Insights
Holiday gifting + tariff panic = 35-point swing December’s +20% (holiday) and April’s +15% (tariff front-running) followed by May’s -19% crash created 35-point volatility in six months. Category planning impossible without accounting for policy-driven demand distortion.
Millennial smart home/gaming boom drives growth +7.5% from ages 28-43 reflects home office upgrades, gaming PC builds, and smart home ecosystems. They’re not replacing old TVs—they’re adding categories (Ring doorbells, Sonos speakers, gaming monitors).
Best Buy’s monopoly is permanent 92-95% share stable for 2+ years. Geek Squad service moat, price-matching guarantee, and omnichannel execution create unassailable position. Competitors win only through geographic density (P.C. Richard Northeast) or niche focus (Newegg PC builders).
$100-125K income bracket = premium sweet spot +11.5% growth from affluent-but-not-wealthy households. They buy premium brands (Apple, Samsung flagship) but wait for promotions. Below $100K buys budget/mid-tier; above $150K less price-sensitive but smaller volume.
Gen X and Boomer exit the category -0.7% and -2.3% from cohorts who should be replacing aging devices. They’re keeping TVs, laptops, and phones longer—stretching 3-year cycles to 5+ years. Affordability or “good enough” mindset?
May’s -19% crash = tariff hangover Worst month in data set. Consumers exhausted budgets buying in April before tariff increases. When prices rose in May, demand froze. Future tariff changes will create similar boom-bust patterns.
Premium service commands pricing power P.C. Richard’s $630-730 AOV (3x Best Buy’s $180-220) proves delivery, installation, and white-glove service justify premium. Regional retailers with service differentiation can defend margin against Best Buy’s scale.
Top Brands by AOV
Leading brands ranked by average order value within sector
This macro sector analysis provides detailed insights into economic trends and consumer behavior patterns. The visualizations below are derived from real-world transaction data and economic indicators.
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Sector Spending by Income Bracket
Industry sector spending patterns by household income level
Sector Spending by Generation
Industry sector spending patterns by generational cohort
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