Warehouse Clubs & Supercentres in Canada
The Warehouse Clubs and Supercentres industry in Canada has fared well over the five years to 2018. Industry operators' ability to pass down lower prices to consumers on a range of merchandise has largely driven revenue growth. This was particularly significant at the start of the five-year period, when wary consumers opted to make value purchases offered by industry operators. Despite overall industry growth, steep declines in the world price of crude oil somewhat hampered revenue gains during the period. Many industry operators, such as Costco, retail fuel at establishment-run gas stations. However, the decline in oil prices benefited industry profit margins, which are heavily affected by transportation costs. Over the five years to 2023, the industry is forecast to continue exhibiting growth, albeit at a slower pace, as the market grows increasingly saturated and competition from online retailers continues to rise.
This industry is made up of large stores that primarily retail a general line of grocery products and merchandise items (e.g. apparel). Warehouse clubs offer customers a wide selection of merchandise, often in bulk, at discounted prices, in exchange for a membership fee that is paid by each customer. Supercentres are large discount department stores that also sell perishable groceries. Unlike warehouse clubs, however, supercentres do not have eligibility requirements for customers.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.