Dive Brief:
- Reversing a lengthy period of sales declines, U.S. consumer technology spending grew 3.5% year over year during the two weeks ending on Dec. 7, according to a Circana analysis released Thursday.
- In contrast to the overall tech sales growth, TV sales and soundbar sales dropped by 3% and 15%, respectively, compared to last year, Circana said in the report.
- During the Black Friday and Cyber Monday weeks, on-ear wireless headband headphones and camcorders each saw a growth rate of 28% year over year, followed by TVs over 75 inches (20%), VR headsets and AR glasses (17%), tablets (13%) and OLED TV sales (12%), notebook computers (9%), desktop computers (7%) and mirrorless detachable lens cameras (2%). Meanwhile, fitness tracker sales more than doubled season-to-date compared to last year, per the report.
Dive Insight:
The electronics sales bump followed eight consecutive quarters of declining revenues, according to Circana.
For camera sales specifically, the report attributed the growth to “a social-media-driven renaissance and digital creator economy.” The rise in computer sales was driven, in part, by shoppers upgrading the computers they purchased during the COVID-19 pandemic, Circana said.
“Deals and doorbuster specials are a big part of why tech products are always among the hottest items for giving and self-gifting during the holiday shopping season, and consumers are responding to this year’s promotions,” Paul Gagnon, vice president and technology industry adviser at Circana, said in a statement. “Even with the consumer’s continued focus on value, spending was up sharply during Black Friday and Cyber Monday for computers, tablets and cameras.”
Indeed, the electronics category is showing signs of recovery, but the category is still expected to decline compared to last year. The latest figures from the U.S. Department of Commerce figures found that electronics and appliance sales rose 1% year over year in November. However, in another report, Circana projected that electronics sales for the year could fall 2% year over year. September was particularly hard for the category, when electronics and appliance sales decreased by 6.6% year over year, per Commerce Department figures.
With electronics and appliance sales struggling for an extended period, Best Buy has been acutely affected by the slowdown. In its most recent earnings report, the electronics retail chain reported Q3 revenue fell 3.2% year over year to $9.4 billion. Upon lowering its full-year guidance, the company said it anticipates generating between $41.1 billion and $41.5 billion, down from its prior estimate of between $41.3 billion and $41.9 billion.
