Quarterly Industry Bulletin

Club Store

Towering shelves and expansive aisles invite shoppers into a world where value meets convenience. Crafted to serve small- and medium-sized businesses, warehouse clubs originated with the idea of providing customers the opportunity to cut operational costs and boost resale margins. But the appeal doesn’t stop there—unbeatable prices and ever-changing product assortments draw in savvy individual shoppers as well. Currently, 50% of consumers have a club store membership in order to unlock the power of bulk buying. As a result, the warehouse club market is expected to grow at an average rate of 3% in the foreseeable future.*

*Source: Mintel

50%

of consumers have a club store membership

Source: Mintel

What’s Driving Growth?

Channel shifting. Economic challenges have many consumers shifting to value channels. Mass and club channels continue to drive the majority of food and beverage growth.*
Service expansion. Warehouse clubs are expected to offer more services like insurance, home repair and financial products.**
Technology. Leveraging the latest tools including AI algorithms to personalize product recommendations. Also, adding convenience features such as scan-and-go and AI-powered exit technology to attract younger consumers seeking value and convenience.***

*Source: Circana; **Source: National Retail Federation; ***Source: Mintel

Top Club Stores in the U.S.

Costco
Sam’s Club
BJ’s Wholesale Club

Source: Statista

Packaging Trends and Influences Within This Segment

Quicker, more frequent trips. All grocery trip types are growing, however; quick trips (+8.9%) lead growth, but with fewer items (-11%) purchased per trip compared to a year ago.*
Smaller formats. BJ’s is testing out a smaller store format called BJ’s Market, which will feature top-selling fresh foods and seasonal products in a more convenient and efficient shopping space.**
E-commerce will continue to impact growth. Consumer demand for convenience and quick delivery continues to grow.***

*Source: Circana; **Source: Retail Touchpoints; ***Source: IBIS

For more information, please contact us by completing the form below.

DOWNLOAD THIS BULLETIN

More Like This

Fully setup Grid-Lok container. A doublewall bulk bin attached to a corrugated pallet

Role of Corrugated Bins in Warehousing as Intermediate Packaging

Corrugated bins, typically made from doublewall or triplewall material, are versatile storage solutions suited for various fulfillment and warehousing needs.

Business Person standing precariously atop a Bar Graph

The True Cost of Poor Packaging Decisions

Many businesses underestimate the importance of packaging designed specifically for their products or applications. While choosing standard, low-cost packaging might seem like a straightforward way to cut expenses, it can lead to significant drawbacks.

Woman Shopping for Health and Beauty Products in Brick-and-Mortar Store.

Brick-and-Mortar: A Lasting Force in Health & Beauty

While online sales continue to outpace in-store growth, brick-and-mortar remains a cornerstone of the health and beauty industry.