Business Insider/Jessica Tyler
Sears' electronics section was underwhelming.
- Best Buy and Sears both sell appliances and electronics like TVs, smart-home devices, and speaker systems.
- If Sears were to close all of its stores, Best Buy would be in a good position to capture sales, analysts say, because of the overlap in the products the stores sell.
- We visited both stores and found that besides the size of the electronics departments, Best Buy offered better prices, higher-quality products, and a better shopping experience overall.
It's no secret that Sears' business has been struggling for some time.
Best Buy may be one of the biggest winners if Sears closes its stores, in part because of the retailers' overlap in appliances and consumer electronics. While appliances are still one of the top categories for Sears, making up an estimated $3.5 billion of Sears' sales, consumer electronics are an $850 million business for the retailer, according to UBS analysis.
According to the Associated Press, in 2014, Sears changed its electronics department's focus from products like TVs to "connected living" products in fitness, home services, appliances, and gadgets. But in March, it decided to refocus on consumer electronics in one-third of its stores again.
"It's a smaller assortment than Best Buy's, but it's larger than it was five months ago and is considerably expanded online, where there's a much broader range," Dean Schwartz, president of hardlines for Sears Holdings, told Twice.
When we visited one of the Sears locations that carried electronics, the store seemed to be struggling. A lot of the shelves were empty, and much of what was on shelves felt dated, including things like boomboxes designed for CDs and cassettes or speakers that can connect to an iPhone 4.
Unlike Sears, which is struggling to stay afloat, Best Buy reported 7.1% same-store sales growth in the first quarter of 2018 and plans to open a new store for the first time in seven years. When we visited, Best Buy had more of a focus on new technology like smart-home devices. The displays were also more appealing, and the prices were lower on products like TVs, headphones, and phone chargers.
While the selection itself was obviously bigger at Best Buy, we compared the two stores' electronics selection based on the overall shopping experience. See how they stack up: