Best Buy has doubled its outlets since fourth quarter, 1995. The concept of these companies, low prices and high volume, have arguably put smaller chains, and even large ones like Silo and Highland Superstores, out of business. This type of competition should continue in the future. The consumer electronics industry should continue to grow in sales and revenues due to the exciting advances still to come in technology. Also growing are communication information products for the home, and wireless communications products are also experiencing tremendous growth this year.
Home theater continues to spur growth in both the audio and video markets.
Home theater related video products will average eight percent annual dollar sales growth through the year 2000. Dollar sales of home theater audio products will grow nine percent each year through the end of the decade. During 1996 home theater audio products were fueled by a 30 percent increase in home theater speaker sales and a 10 percent increase in surround sound receiver shipments. Technology Investment Analysis Investment in technology is a given for an industry that is based on technological advancement. The consumer electronics industry must invest in technology to keep up with technology from a development standpoint.