Best Buy and Target both reported slow third-quarter sales, according to MarketResearch.com. Both stores reported a decline in consumer electronics sales.
Target saw a double-digit decline in electronics sales, which is a category they offered significant promotions for earlier in the year. Best Buy saw falling sales of tablets, mobile phones, and digital imaging products.
According to a report by First Research Inc., the U.S. industry for consumer electronics is very concentrated, with 50 of the largest companies accounting for 70 percent of sales. The market itself gains annual revenue of about $100 billion.
With the holidays here, it’s unclear if stores will hit their revenue goals. Because shopper interest in consumer electronics is low, there is no guarantee that Best Buy will be able to rebound from their decline in profits.