INDUSTRY REPORT
Electronics market resilience in Q2 2025
Q2 2025 in the Electronics sector defied conventional expectations. Despite broader economic and tariff challenges, the data reveals surprising resilience and shifting priorities across the electronics marketplace. The anticipated outcomes of rising prices and falling conversion haven't materialized as predicted. Instead, Electronics brands are thriving where operational execution and cost management drive success.
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Key takeaways
- Inventory stabilized with modest growth - Electronics on-hand inventory increased 12.5% year-over-year in Q2, substantially lower than the industry-wide average of 26%
- Price stability remains an advantage - Unlike most categories that saw price declines, Electronics average selling prices increased year-over-year while maintaining steady discount levels
- Traffic growth outpaced by sales - Electronics glance views increased 7.6% year-over-year, but sales grew at 12.9%, indicating strong conversion performance
- Advertising efficiency improved - Unlike the broader market trend, Electronics ad spend decreased 2.3% year-over-year while sales grew, though ROAS dropped slightly by 1.7%
- Out-of-stock challenges persist - Revenue loss due to out-of-stock issues increased 5.2% year-over-year, though reported out-of-stock percentages hit 18-month lows
- Margins recovered from Q4 lows - Unit margins recovered to 32%, showing retailer efficiency despite challenging market conditions
