Household Appliance Stores
Companies in this industry sell household appliances, both major and small, from physical retail locations. No major companies dominate the industry.
Global demand for household appliances depends on consumer spending in major markets such as the US and Western Europe. Sales are expected to increase most rapidly in countries with emerging middle classes. Demand for major home appliances worldwide is predicted to rise to 445 million items by 2019, reflecting 3% annual growth, according to The Freedonia Group. China is expected to remain the leading producer and purchaser of major home appliances, while India and Indonesia are forecast post the fastest increases in demand.
The US household appliance store industry includes about 7,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16.7 billion.
Demand is driven by home sales, home remodeling, replacement due to product failure, and technological innovation. The profitability of individual companies depends on effective marketing and merchandising. Large companies can negotiate volume discounts from manufacturers. Small companies can compete effectively by offering superior customer service or specializing in product segments. The US industry is fragmented: the 50 largest companies account for less than 50% of industry sales.
Major competitors of freestanding household appliance stores include home improvement stores (Lowe's, Home Depot); consumer electronics stores (Best Buy); warehouse clubs (Costco, Sam's); and mass merchandisers (Walmart, Target), as well as online giant Amazon.com sells household appliances.
Fierce retail competition and an abundance of low-priced imports, mainly from China and Mexico, have driven down prices of household appliances in the US. Indeed, US consumer prices for appliances were 21% lower in 2018 than in 2000. However, steep import tariffs imposed by the US in 2018 on hundreds of goods from China, including household appliances like washing machines and parts used by US manufacturers of household appliances, have led to a decline in imports and upward pressure on prices for US consumers.
Products, Operations & Technology
Major product segments include kitchen, laundry, and small household appliances. Kitchen appliances include refrigerators, freezers, dishwashers, and microwaves.
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms