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. Revenue in the market is expected to grow annually by 4.8% between 2023 and 2027, according to Statista. China is expected to remain the leading producer and purchaser of major home appliances, while India and Indonesia are forecast to 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 more than $15 billion.
Competitive Landscape
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 have driven down prices of household appliances in the US. US household and kitchen appliances imports are mainly from the European Union, China, Mexico, Canada, Germany, and Japan. 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 appliances (about 55% of revenue), laundry appliances (15%), and televisions, audio, and video equipment (10%).
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Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Call Preparation Questions
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Industry Forecast
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Glossary of Acronyms