No power: External competition has increasingly siphoned sales away from industry operators

The Consumer Electronics Stores industry in Canada has experienced poor performance over the five years to 2019. While rising per capita disposable income levels have provided improved economic conditions, competition from mass merchandisers and online retailers that offer goods at competitive prices has increasingly siphoned sales away from industry operators. Due to rising levels of competition, many industry operators have struggled to attract customers to their stores, as online merchants and mass merchandisers can traditionally offer a wider variety of products at lower prices. As a result, industry profit margins have fallen over the past five years. Over the five years to 2024, the industry is forecast to continue its long-term more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Many industry operators have struggled to attract customers to their stores
  • Price competition has cut into profit margins
  • External competition from e-commerce outlets will continue to inhibit operators
  • Industry Report - Starting a New Business Chapter

    New operators planning to enter the Consumer Electronics Stores industry in Canada will need to overcome several barriers. The most significant of these will be the level of external competition industry players endure from department stores (e.g. the Hudson’s Bay Company), discount retailers (e.g. Walmart Inc.) and online retailers (e.g. Inc.). These larger-sized operators limit demand for consumer electronics stores because they benefit from economies of scale and are able to purchase a wide variety of comparable merchandise, often at discounted prices, enabling them to pass these cost savings on to consumers without significantly reducing product margins...purchase to read more.

    Additional Insights for the Consumer Electronics Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Consumer Electronics Stores Industry are

  • Ability to control stock on hand
  • Attractive product presentation
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Demand from e-commerce and online auctions in the Consumer Electronics Stores industry impact industry performance..

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    What's in this report

    What is the Consumer Electronics Stores Industry?

    This industry retails a range of appliances, electrical goods and home entertainment products, such as dishwashers, TVs and computers. Industry operators purchase goods from manufacturers or wholesalers, which are then sold to the general public in stores or online. New purchases dominate the market, but many stores also offer repair services, while some sell used goods.

    Industry Products
  • TV and audiovisual equipment
  • Computer hardware and software
  • Appliances
  • Cameras and photo equipment
  • Mobile phones, landlines and telephone equipment
  • Industry Activities
  • Retailing consumer electronics (e.g. radios, TVs, digital cameras, video games and computers)
  • Retailing mobile phones, smartphones and accessories
  • Retailing new household appliances (e.g. refrigerators, washing machines and ovens)
  • Retailing new personal appliances (e.g. hair dryers, curling irons and electric razors)
  • Offering repair services in conjunction with operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Demand from e-commerce and online auctions
  • Housing starts
  • Number of adults aged 20 to 64

  • Current Performance
  • Demand conditions and external competition
  • Industry composition and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition
  • Demographic and economic trends
  • Energy-efficient appliances
  • Industry profit
  • Table: Consumer Electronics Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Consumer Electronics Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Audio & Video Equipment Manufacturing in Canada
  • Computer Manufacturing in Canada
  • Electronic Part & Equipment Wholesaling in Canada
  • Major Household Appliance Manufacturing in Canada
  • TV & Appliance Wholesaling in Canada

  • Products & Services
  • Computer hardware and software
  • Mobile phones, landlines and telephone equipment
  • Appliances
  • TV and audiovisual equipment
  • Cameras and photo equipment
  • Chart: Consumer Electronics Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 40 to 54
  • Consumers aged 55 to 64
  • Consumers aged 29 and younger
  • Consumers aged 30 to 39
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Consumer Electronics Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Consumer Electronics Stores

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Consumer Electronics Stores Industry

  • Industry Globalization
    Best Buy Canada Ltd.,
  • Table: Best Buy Canada Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Consumer Electronics Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Consumer Electronics Stores Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An optical disc format designed to display high-definition video and store large amounts of data.
  • Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio-Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Smartphone
  • A mobile phone that offers advanced capabilities similar to PCs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Consumer Electronics Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Consumer Electronics Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Consumer Electronics Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Consumer Electronics Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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