Another long-time Southern California retailer has shuttered its stores.
I recently was surprised to see a large closed sign on the Howard’s Appliances store in Covina, CA and found online the following heads up insightful macro perspective:
12/18/2025
Howard’s Appliances Closes After 79 Years, Filing Chapter 11 Amid Industry Pressures
Howard’s exit reflects broader structural shifts in retail and underscores the increasing difficulty for regional and mid-sized players to thrive
Founded in 1946, Howard’s Appliances built a legacy selling appliances, TVs, and mattresses in Southern California. At its peak, Howard’s operated 17 stores and subsequently consolidated its operation to 8 stores. To the surprise of employees and customers alike, effective December 6, 2025, the 79 year-old regional retailer permanently shuttered all of its remaining 8 locations and filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Central District of California.
With up to $17 million in liabilities. the company’s lawyers stated: “Despite our best efforts to overcome tariffs, declines in consumer spending, and other macroeconomic challenges [my emphasis in bold] — we have made the difficult decision to file for bankruptcy and close our doors. This was not a decision made lightly, but one that became necessary given the current economic landscape.”
Howard’s closure is part of a larger pattern of regional and mid-sized retailers struggling against big-box chains and evolving consumer behavior. Jonathan Lansner of the Orange County Register describes it as “another sign of the new reality of how Californians buy big-ticket items that fill their homes.” Today, most consumers prefer national chains such as Lowe’s, Home Depot, Best Buy and Costco, leaving specialty and regional merchants increasingly marginalized.
Howard’s joins a long list of California and U.S. retailers that have succumbed in recent years, including Pirch, Fry’s, Western Appliances, Asien Appliance, HH Gregg, Conn’s, and National Freight. Even high-end appliance strategies—a segment Howard’s explored—remain limited and economically sensitive.
Employment and Industry Impact
Howard’s sudden closure impacted roughly 100 employees and highlights a larger decline in the appliance/electronics workforce. In California, employment in this sector has been cut by more than half over the past 25 years—from a peak of 94,000 in 1999 to 44,000 by mid-2025. These trends have major implications for distributors and manufacturers relying on regional partners and local service networks.
Shifting Consumer Behavior
Economic and pandemic-era shifts have further pressured small appliance retailers. Between 2019 and 2025, California home sales declined 35%, while appliance and electronics sales only modestly fluctuated. Consumers increasingly make purchasing decisions based on pricing rather than service, undercutting the traditional value proposition of regional chains.
Lessons for Retailers, Distributors, and Manufacturers
Howard’s closure serves as a cautionary tale: even longstanding retailers with decades of experience are vulnerable to macroeconomic challenges, evolving consumer preferences, and competition from national chains. For industry stakeholders, the lesson is clear: operational flexibility, diversification, and keen awareness of market trends are essential to survive in a rapidly shifting retail landscape.
As 2025 saw a surge in bankruptcies across home-improvement, furniture, and décor sectors—including American Signature and At Home—Howard’s exit reflects broader structural shifts in retail and underscores the increasing difficulty for regional and mid-sized players to thrive.
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In the past, when shopping for appliances and other retail products, I usually tried to support local and regional retailers by giving them an opportunity to match or beat retail prices offered at national chains and online retailers. Today, most of these smaller retailers no longer exist.
One in particular that I still shop at is Pacific Sales, founded in 1960 and headquartered in Torrance, CA, offering mid-range to luxury appliances, bathroom fixtures and home furnishings as well as an assortment of home electronic and other home improvement products. In 2006, although purchased by Best Buy for $410 million, Pacific Sales was allowed to operate as a subsidiary, keeping the brand and company intact. Currently, Pacific Sales has 20 stand alone showrooms in Southern California (Los Angeles, Ventura, Orange, San Bernardino, Riverside and San Diego counties) and appliance-only sales outlets within selected existing Best Buy stores located in California and other selected states.
My city of San Dimas, CA has a large Pacific Sales showroom, where I shop and their highly knowledgeable professional staff has matched or beaten the prices of all competitors. While Pacific Sales serves the general public, its model is heavily tailored to supporting construction, remodeling, and contractor projects.
Here’s the Pacific Sales Kitchen & Home website.
https://www.bestbuy.com/site/electronics/pacific-sales/pcmcat249300050012.c?id=pcmcat249300050012
If one day its parent company Best Buy goes belly up, Pacific Sales should be able to spin off, abandon its operations within Best Buy stores, and operate again as a privately held company. Best Buy quarterly and annual reports do not reveal individual sales revenues from its subsidiary Pacific Sales.
Here’s Morningstar’s recent tepid take on Best Buy.
3/3/2026 Why Best Buy’s stock is soaring, even as sales and full-year outlook disappoint
Regards,
Ray