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Home > Consumer Products > Shopping & Stores > DIY & Home
Household Appliance Stores
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| Published Date:
October 2009
Published By:
First Research, Inc.
Page Count:
10
Order Code:
R3470-3197
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The US household appliance store industry includes 10,000 stores with combined annual revenue of $14 billion. Major companies include ABC Appliance, Conn's, hhgregg, and PC Richard. The industry is fragmented: the 50 largest companies represent about 35 percent of industry sales.
COMPETITIVE LANDSCAPE
Demand is driven by home sales, replacement due to product failure, and home remodeling. 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 high value of major appliance purchases results in an average annual revenue per employee of $200,000.
Major competitors include department stores (Sears); home improvement stores (Home Depot, Lowe’s); consumer electronics stores (Best Buy); warehouse clubs (Costco, Sam's); and mass merchandisers (Wal-Mart). Sears also has a network of more than 800 independent dealers that sell its Kenmore brand appliances in small markets.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments include kitchen, laundry, and small household appliances, and TVs. Kitchen appliances account for 40 percent of sales, washers and dryers for 20 percent, other major household appliances for 15 percent, and TVs for 10 percent. Large appliances, with the exception of TVs, are often referred to as “white goods.” Kitchen appliances include refrigerators, freezers, dishwashers, and microwaves. Other major household appliances include room air conditioners, dehumidifiers, and vacuum cleaners. Appliance retailers may also sell consumer ...
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