Warehouse Clubs - US - June 2017
"Warehouse clubs have been successful of convincing a large amount of people to pay an annual fee to shop at their stores. Sales continue to increase YOY (year-over-year) and the forecast ahead looks bright. These consumer advocates find that, based on their shopping habits and needs, the value they receive in benefits outweighs the fee, which works well for them. However, the warehouse club model is not for everyone. Membership requirements, fees and bulk-sized products remain the main barriers for nonshoppers. There remains a large “middle ground” however: consumers who are not current members but have a higher than average likelihood to be converted. Nearly half of nonshoppers are open to shopping the channel in the future but many think they can get everything they need elsewhere. Warehouse clubs should focus on trial tactics to drive acquisition, easing consumers in via free trial periods or shorter commitment windows."
- Diana Smith, Associate Director - Retail & Apparel
This Report discusses the following key topics:
Overall growth predicted, but pace of growth may slow
Membership requirements do not protect warehouse clubs from outside competition
Membership fees remain a key barrier
Bulk buying does not have universal appeal