The price of televisions is sliding, and CDs and DVDs are not nearly as popular as they once were. Retailers are stuck with lots of space as products shrink or go digital. And because many manufacturers are not allowing retailers to advertise below minimum prices for their products, stores cannot publicize sale prices the way they once did.
Sales at physical electronics stores have declined an average of 2.6 percent a year in the last five years, according to the market research firm IbisWorld. Sales of electronics online have risen an average of 14.7 percent a year in that period. Chains like Circuit City and CompUSA have collapsed under the pressure. (CompUSA has been revived in some locations.)
