The global electronics and appliance stores market is expected to grow from $982.21 billion in 2020 to $1064.28 billion in 2021 at a compound annual growth rate (CAGR) of 8.4%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1334.67 billion in 2025 at a CAGR of 6%.
The electronics and appliance stores market consists of sales of electronics and appliances by entities (organizations, sole traders and partnerships) that sell electronics and appliances to ultimate users from fixed point-of-sale locations. The segment is typically operated from the locations that have provisions for floor displays and provide electrical capacity for demonstration of the products. The electronics and appliance stores market is segmented into hardware suppliers & security stores and consumer electronics stores.
The Asia Pacific was the largest region in the global electronics and appliance stores market, accounting for 51% of the market in 2020. Western Europe was the second largest region accounting for 14% of the global electronics and appliance stores market. Eastern Europe was the smallest region in the global electronics and appliance stores market.
Electronics stores are rapidly adopting technology to implement the efficient workflow, better store management and services. The stores now have traffic-tracking sensors, radio-frequency identification (RFID) tags, handheld scanners, and heat maps, all designed to offer a real-time snapshot of how the modern consumer is shopping. These digital technologies help in real-time stock management, inventory controls, make solid predictions and demand forecasting. Global electronics and appliance stores including Best Buy, Conn’s, Fry’s Electronics, the retail operations of Apple, Fnac Darty, GOME, Saturn brands, and Yamada Denki have adopted a wide range of digital technologies to enhance the in-store experience.
The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the electronics and appliance stores market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. Steps by national governments to contain the transmission have resulted in a decline in manufacture and trade of non-essential goods and an overall decline in economic activity with countries entering a state of ‘lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the electronics and appliance stores market will recover from the shock across the forecast period as it is a ‘black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy
The electronics and appliance stores are adopting a robust and cohesive strategy for data analytics in management. This technology is being deployed to enhance supply chain efficiency, streamline operations to engage customers and building loyalty, data has become critical for most retail operations. For instance, the global retail analytics market is expected to rise up to $5.1 billion by 2022. With the rapid growth in retail data and the availability of technologies to analyze data, it will become easier for electronics and appliance stores to identify and meet the needs and expectations of their customers, thus it is expected to drive the market going forward.