Executive Briefings

Retailers Struggle to Make Buying Electronics in Stores Attractive Again

There is great effort now to make buying electronics in a store appealing again, but the trends are not favorable. People are increasingly buying electronics online, even if they go to stores to examine product features.

The price of televisions is sliding, and CDs and DVDs are not nearly as popular as they once were. Retailers are stuck with lots of space as products shrink or go digital. And because many manufacturers are not allowing retailers to advertise below minimum prices for their products, stores cannot publicize sale prices the way they once did.

Sales at physical electronics stores have declined an average of 2.6 percent a year in the last five years, according to the market research firm IbisWorld. Sales of electronics online have risen an average of 14.7 percent a year in that period. Chains like Circuit City and CompUSA have collapsed under the pressure. (CompUSA has been revived in some locations.)

So the stores that hope to survive must change.

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Keywords: retail supply chain, Best Buy, online purchases of electronics

The price of televisions is sliding, and CDs and DVDs are not nearly as popular as they once were. Retailers are stuck with lots of space as products shrink or go digital. And because many manufacturers are not allowing retailers to advertise below minimum prices for their products, stores cannot publicize sale prices the way they once did.

Sales at physical electronics stores have declined an average of 2.6 percent a year in the last five years, according to the market research firm IbisWorld. Sales of electronics online have risen an average of 14.7 percent a year in that period. Chains like Circuit City and CompUSA have collapsed under the pressure. (CompUSA has been revived in some locations.)

So the stores that hope to survive must change.

Read Full Article


Keywords: retail supply chain, Best Buy, online purchases of electronics