In today’s economy, every dollar counts—especially when it comes to big purchases like home appliances. With inflation still high, tighter household budgets, and recent changes to import tariffs, more Americans are turning to a smarter, more budget-friendly option: Scratch & Dent appliances (slightly damaged, open-box, or returned items).
No, they’re not used. And they’re definitely not broken. They’re just… a little imperfect.
Thanks to small cosmetic flaws—maybe a dent from shipping or a scratch from the showroom—these brand-new, name-brand appliances (we’re talking refrigerators, washers, ovens, and more) are sold at major discounts. You still get the functionality, reliability, and warranties you’d expect—just without paying full price.
With the combo of trusted brands, big savings, and the chance to inspect items in person, Scratch & Dent has grown way beyond the clearance section. It’s now one of the fastest-growing and most widely accepted categories in the appliance world.
And make no mistake—the market is booming.
📈 A Market on the Rise: $9.2B in 2024 and Still Growing
According to a new report from Market Research Future, the Scratch & Dent appliance market in the U.S. hit $9.205 billion in 2024. And it’s not slowing down. By 2035, it’s expected to nearly double to $18.314 billion, growing at a compound annual rate of 6.45%.
So why the surge?
- New appliance prices keep rising. Consumers are looking for better value.
- Minor flaws don’t affect performance. These products still work like new.
- Warranties included. Many offer 1–4 years of protection.
- Steady supply. Thanks to returns, warehouse stock, and floor models.
What was once seen as a clearance strategy is now a mainstream, structured market—and it’s only getting stronger.
🏪 In-Store Still Dominates—but Online is Catching Up
Here’s how people are buying:
- 60.95% of Scratch & Dent purchases still happen in-store (that’s $5.61B in 2024).
- Online sales account for 39.05%, or about $3.99B.
Why do most buyers still prefer shopping in person? Simple: these are large, expensive items. Shoppers want to see the actual product and test it out before taking it home. That peace of mind matters.
But don’t sleep on e-commerce. As online platforms improve and shipping logistics catch up, online sales are expected to grow rapidly—opening up huge opportunities for brands and retailers alike.
🔍 The Products That Matter Most: Big-Ticket Items Lead the Way
Scratch & Dent sales are largely driven by large appliances. In 2024:
- Major appliances (fridges, washers, ovens):
- 70.06% market share
- $6.449B in sales
- Small appliances (microwaves, blenders, etc.):
- 29.94% share
- $2.756B in sales
When it comes to big-ticket appliances, today’s shoppers are all about value and trust. They want a good deal—but they’re not willing to compromise on quality or brand. That’s exactly where Scratch & Dent products shine. You’re still getting name-brand appliances that work like new, just at 40–60% off the original price. It’s a smart way to upgrade without blowing the budget.
So how are the top categories doing?
🔍 Turns out, all four major appliance types grew faster than the overall market (which saw a 6.45% annual growth). Leading the pack? Dishwashers, with a 6.88% growth rate, nearly twice what it was over the last decade.
- Fridges are still the biggest chunk of the market, though their growth is starting to level off.
- Washers and dryers came in strong with $1.415 billion in sales—just behind fridges.
- Ovens and ranges saw steady gains too, driven by people upgrading their kitchens.
- Dishwashers, once a “nice-to-have,” are now pretty much a must-have in many households—thanks to new home builds and energy efficiency benefits.
Bottom line? Scratch & Dent isn’t just about finding a bargain. In categories like kitchen and laundry, it’s meeting real demand from everyday families. These products are quickly becoming the mainstream choice, and that’s exactly where the biggest opportunities are.
💡 What’s Fueling This Shift? A New Consumer Mindset
Behind the numbers is a deeper shift in how Americans shop:
- More price-conscious buyers. Inflation and high interest rates are changing habits.
- Growing demand from renters and new homeowners.
- People want value—but still care about brands and warranties.
And here’s something you might not expect: this trend is especially strong in southern, midwestern, and suburban markets, where housing turnover and income levels make high-value, lower-cost appliances the perfect fit.
🏪 Case Study: A4L and the Rise of the Scratch & Dent Store Network
One of the biggest players in this space is Appliances 4 Less (A4L). They’ve built a retail network across all 50 states, with 130+ locations focused solely on Scratch & Dent appliances.
What makes their model work?
- Standardized sourcing from trusted brands like LG, Whirlpool, GE, Samsung and more
- Core focus on high-demand items like fridges and washers
- All products come with 1–4 year warranties
- Localized stores with a growing online presence
A4L has proven that this isn’t just about clearing out inventory—it’s a sustainable retail model that’s working in communities across the country.
Final Thoughts: A Smart Market, Not Just a Discount Bin
Scratch & Dent isn’t just a clever way to save a few bucks. It’s turning into a legitimate, scalable retail category—driven by real consumer demand and backed by major brands.
For retailers and entrepreneurs, this space offers:
✅ Clear supply and demand
✅ Big-name product partnerships
✅ Scalable retail models
✅ Untapped online potential
The question isn’t if this market will grow—it’s who will build the right systems to win in it.
