Retail: Video, Audio, Electronic Franchises

The U.S. consumer electronic store industry includes over 24,000 stores with combined annual revenue of approximately $50 billion. Franchises include GameStop and RadioShack. Technological innovation and the need to replace or upgrade products drive demand.

Profitability for individual businesses depends on the ability to generate store traffic and repeat business such as effective merchandising. Competitors of consumer electronics stores include discount stores, warehouse clubs, department stores, Internet and mail order retailers; and specialty office and computer retailers.

Major products segments include computer equipment, TVs, audio equipment, video equipment, phones and electronic games. Computer hardware and software account for almost 20 percent of sales; TVs, audio equipment and video equipment each account for about 15 percent. Audio equipment includes stereo components, MP3 players, CD players, car stereos, home theatre audio systems and accessories. Video equipment includes video recorders, video cameras, videotapes, digital cameras, DVDs and electronic game devices.