Table of Contents
Executive Summary
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- Overview
- The market
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- Figure 1: Total US sales and fan chart forecast of warehouse clubs, at current prices, 2009-19
- Market drivers
- Consumer confidence and unemployment
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- Figure 2: Consumer confidence and unemployment, 2000-Q1 2014
- Household size impacts warehouse club shopping
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- Figure 3: Percent of total households, by number of people in household, 2012
- The consumer
- Most shop in-stores at warehouse clubs rather than online
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- Figure 4: Warehouse clubs shopped, March 2014
- Most shop at warehouse clubs based on price
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- Figure 5: Reasons for shopping at warehouse clubs, March 2014
- Most warehouse club shoppers like to browse
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- Figure 6: Shopping behaviors at warehouse clubs, March 2014
- Lower membership fees, free trial days would encourage more warehouse club shopping
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- Figure 7: Factors to encourage more warehouse club shopping, March 2014
- What we think
Issues and Insights
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- How will the growing Hispanic population impact warehouse clubs?
- The issues
- The implications
- What role does online shopping play in the warehouse club market?
- The issues
- The implications
- How can warehouse clubs appeal to more shoppers?
- The issues
- The implications
Trend Applications
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- Trend: Secret, Secret
- Trend: Access All Areas
- Trend: Why Buy
Market Size and Forecast
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- Key points
- Warehouse clubs’ sales expected to grow
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- Figure 8: Total US warehouse club retail sales and forecast, at current prices, 2009-19
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- Figure 9: Total US warehouse club retail sales and forecast, at inflation adjusted prices, 2009-19
- Figure 10: Number of warehouse club stores operating in the US, 2009-14
- Fan chart forecast
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- Figure 11: Total US sales and fan chart forecast of warehouse clubs, at current prices, 2009-19
Market Drivers
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- Key points
- Consumer confidence and unemployment
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- Figure 12: Consumer confidence and unemployment, 2000-Q1 2014
- Household size impacts warehouse club shopping
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- Figure 13: Percent of total households, by number of people in household, 2012
- Millennials and their impact on warehouse clubs
- The shrinking middle class
Competitive Context
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- Key point
- Competition from other channels
- Amazon Pantry aims to fight club stores head on
- Groupon aims to compete with warehouse clubs
Retailer Overview
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- BJ’s Wholesale Club
- Costco
- Sam’s Club
- Other notable warehouse clubs
- Issues and opportunities for warehouse clubs
- Current retail model and key issues:
- Opportunities:
Innovations and Innovators
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- Sam’s Club offering more services for shoppers
- Costco partners with Instacart for home delivery
- Boxed offers New Yorkers an alternative to warehouse clubs
Marketing Strategies
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- Overview of the brand landscape
- Sampling
- Private label
- Coupon and special offers (print and email)
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- Figure 14: BJ’s Wholesale Club email promotion, April 2014
- Figure 15: Sam’s Club email promotion, April 2014
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- Figure 16: Costco email promotion, April 2014
- Figure 17: Zulily Sam’s Club offer, May 2014
Warehouse Clubs Shopped
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- Key points
- Most shop in-stores at warehouse clubs
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- Figure 18: Warehouse clubs shopped, March 2014
- Men more likely than women to shop at warehouse clubs
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- Figure 19: Warehouse clubs shopped in-store, by gender and age, March 2014
- Higher-income consumers more likely to shop at warehouse clubs compared to those with lower incomes
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- Figure 20: Warehouse clubs shopped in-store, by household income, March 2014
- Costco shoppers buy items across the most categories
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- Figure 21: Top purchases made within department/discount stores – November 2012-December 2013
- Most shoppers visit warehouse clubs once or twice a month
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- Figure 22: Frequency of visits, by warehouse club shoppers, November 2012-December 2013
Warehouse Club Memberships
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- Key points
- Nearly half of warehouse club shoppers are members at more than one club
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- Figure 23: Warehouse club memberships, March 2014
- Younger men most likely to have memberships at more than one club
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- Figure 24: Warehouse club memberships, by gender and age, March 2014
- More people in household and presence of children lead to more than one warehouse club membership
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- Figure 25: Warehouse club memberships, by household size and presence of children under 18 living in household, March 2014
Membership Types
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- Key point
- Most warehouse club shoppers use their personal membership and are the primary member
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- Figure 26: Membership types – BJ’s Wholesale club, Costco, and Sam’s Club, March 2014
Reasons for Shopping at Warehouse Clubs
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- Key points
- Most shop at warehouse clubs based on price
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- Figure 27: Reasons for shopping at warehouse clubs, March 2014
- Older men shop at warehouse clubs due to better prices and to get gasoline
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- Figure 28: Reasons for shopping at warehouse clubs, by gender and age, March 2014
- Higher-income shoppers like warehouse clubs for their prices and quality products
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- Figure 29: Reasons for shopping at warehouse clubs, by household income, March 2014
- Costco shoppers like quality products, BJ’s and Sam’s like to buy in bulk
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- Figure 30: Reasons for shopping at warehouse clubs, by warehouse clubs shopped, March 2014
Reasons for Not Shopping at Warehouse Clubs
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- Key points
- Non-warehouse clubs shoppers don’t have membership or don’t want to pay for one
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- Figure 31: Reasons for NOT shopping at warehouse clubs, March 2014
- Older adults don’t want to pay a membership fee, don’t want bulk-sized items
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- Figure 32: Reasons for NOT shopping at warehouse clubs, by gender and age, March 2014
- Membership fee strong deterrent among higher-income consumers
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- Figure 33: Reasons for NOT shopping at warehouse clubs, by household income, March 2014
Shopping Behavior at Warehouse Clubs
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- Key points
- Most warehouse club shoppers like to browse
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- Figure 34: Shopping behaviors at warehouse clubs, March 2014
- Older shoppers browse warehouse clubs, buy private label
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- Figure 35: Shopping behaviors at warehouse clubs, by gender and age, March 2014
- Higher-income shoppers satisfied with warehouse clubs
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- Figure 36: Shopping behaviors at warehouse clubs, by household income, March 2014
- Costco shoppers most satisfied with shopping experience
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- Figure 37: Shopping behaviors at warehouse clubs, by warehouse clubs shoppers, March 2014
Factors to Encourage More Warehouse Club Shopping
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- Key points
- Lower membership fees, free trial days would encourage more warehouse club shopping
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- Figure 38: Factors to encourage more warehouse club shopping, March 2014
- Among current shoppers, women look for savings, men want more assistance
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- Figure 39: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by gender, March 2014
- Higher-income shoppers want more efficient checkout
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- Figure 40: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by household income, March 2014
- BJ’s and Sam’s Club shoppers seek savings, Costco shoppers want more services
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- Figure 41: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by warehouse clubs shopped, March 2014
- Reduced membership fees, free trial days would encourage membership among non-shoppers
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- Figure 42: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by gender and age, March 2014
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- Figure 43: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by household income, March 2014
Race and Hispanic Origin
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- Key points
- Hispanics more likely than non-Hispanics to shop at warehouse clubs and have more than one membership
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- Figure 44: Warehouse clubs shopped in-store, by race/Hispanic origin, March 2014
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- Figure 45: Warehouse club memberships, by race/Hispanic origin, March 2014
- Hispanics and Blacks like exclusivity of warehouse clubs
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- Figure 46: Reasons for shopping at warehouse clubs, by race/Hispanic origin, March 2014
- Lack of membership, not willing to pay membership fees are reasons for not shopping at warehouse clubs
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- Figure 47: Reasons for NOT shopping at warehouse clubs, by race/Hispanic origin, March 2014
- Hispanics tend to stick to a list
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- Figure 48: Shopping behaviors at warehouse clubs, by race/Hispanic origin, March 2014
- Lower membership fees, sampling, and self-checkouts appeal to Black shoppers
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- Figure 49: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by race/Hispanic origin, March 2014
- Lower membership fees appeal to all race/ethnic groups
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- Figure 50: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by race/Hispanic origin, March 2014
Appendix – Other Useful Consumer Tables
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- Warehouse clubs shopped – in-store
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- Figure 51: Warehouse clubs shopped in-store, by marital status, March 2014
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- Figure 52: Warehouse clubs shopped in-store, by household size, March 2014
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- Figure 53: Warehouse clubs shopped in-store, by presence of children under 18 living in household, March 2014
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- Figure 54: Warehouse clubs shopped in-store, by employment groups, March 2014
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- Figure 55: Warehouse clubs shopped in-store, by generations groups, March 2014
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- Figure 56: Warehouse clubs shopped in-store, by residence, March 2014
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- Figure 57: Warehouse clubs shopped in-store, by area of living, March 2014
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- Figure 58: Warehouse clubs shopped in-store, by warehouse clubs shoppers, March 2014
- Warehouse clubs shopped – online
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- Figure 59: Warehouse clubs shopped online, by gender and age, March 2014
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- Figure 60: Warehouse clubs shopped online, by household income, March 2014
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- Figure 61: Warehouse clubs shopped online, by race/Hispanic origin, March 2014
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- Figure 62: Warehouse clubs shopped online, by marital status, March 2014
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- Figure 63: Warehouse clubs shopped online, by household size, March 2014
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- Figure 64: Warehouse clubs shopped online, by presence of children under 18 living in household, March 2014
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- Figure 65: Warehouse clubs shopped online, by employment groups, March 2014
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- Figure 66: Warehouse clubs shopped online, by generations groups, March 2014
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- Figure 67: Warehouse clubs shopped online, by residence, March 2014
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- Figure 68: Warehouse clubs shopped online, by warehouse clubs shoppers, March 2014
- Categories purchased at BJ’s Wholesale Club
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- Figure 69: Purchases made within department/discount stores – BJ’s wholesale club, by gender, November 2012-December 2013
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- Figure 70: Purchases made within department/discount stores – BJ’s wholesale club, by age, November 2012-December 2013
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- Figure 71: Purchases made within department/discount stores – BJ’s wholesale club, by household income, November 2012-December 2013
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- Figure 72: Purchases made within department/discount stores – BJ’s wholesale club, by race/Hispanic origin, November 2012-December 2013
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- Figure 73: Purchases made within department/discount stores – BJ’s wholesale club, by household size, November 2012-December 2013
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- Figure 74: Purchases made within department/discount stores – BJ’s wholesale club, by presence of children under the age of 18 living in the household, November 2012-December 2013
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- Figure 75: Purchases made within department/discount stores – BJ’s wholesale club, by marital status, November 2012-December 2013
- Categories purchased at Costco
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- Figure 76: Purchases made within department/discount stores – Costco, by gender, November 2012-December 2013
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- Figure 77: Purchases made within department/discount stores – Costco, by age, November 2012-December 2013
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- Figure 78: Purchases made within department/discount stores – Costco, by household income, November 2012-December 2013
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- Figure 79: Purchases made within department/discount stores – Costco, by race/Hispanic origin, November 2012-December 2013
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- Figure 80: Purchases made within department/discount stores – Costco, by household size, November 2012-December 2013
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- Figure 81: Purchases made within department/discount stores – Costco, by presence of children under the age of 18 living in the household, November 2012-December 2013
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- Figure 82: Purchases made within department/discount stores – Costco, by marital status, November 2012-December 2013
- Categories purchased at Sam’s Club
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- Figure 83: Purchases made within department/discount stores – Sam’s Club, by gender, November 2012-December 2013
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- Figure 84: Purchases made within department/discount stores – Sam’s Club by age, November 2012-December 2013
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- Figure 85: Purchases made within department/discount stores – Sam’s Club, by household income, November 2012-December 2013
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- Figure 86: Purchases made within department/discount stores – Sam’s Club, by race/Hispanic origin, November 2012-December 2013
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- Figure 87: Purchases made within department/discount stores – Sam’s Club, by household size, November 2012-December 2013
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- Figure 88: Purchases made within department/discount stores – Sam’s Club, by presence of children under the age of 18 living in the household, November 2012-December 2013
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- Figure 89: Purchases made within department/discount stores – Sam’s Club, by marital status, November 2012-December 2013
- Warehouse club memberships
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- Figure 90: Warehouse club memberships, by household income, March 2014
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- Figure 91: Warehouse club memberships, by marital status, March 2014
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- Figure 92: Warehouse club memberships, by employment groups, March 2014
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- Figure 93: Warehouse club memberships, by generations groups, March 2014
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- Figure 94: Warehouse club memberships, by warehouse clubs shoppers, March 2014
- Membership types
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- Figure 95: Membership types – BJ’s Wholesale club, by gender and age, March 2014
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- Figure 96: Membership types – BJ’s Wholesale club, by household income, March 2014
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- Figure 97: Membership types – BJ’s Wholesale club, by race/Hispanic origin, March 2014
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- Figure 98: Membership types – BJ’s Wholesale club, by marital status, March 2014
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- Figure 99: Membership types – BJ’s Wholesale club, by household size, March 2014
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- Figure 100: Membership types – BJ’s Wholesale club, by presence of children under 18 living in household, March 2014
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- Figure 101: Membership types – BJ’s Wholesale club, by employment groups, March 2014
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- Figure 102: Membership types – Costco, by gender and age, March 2014
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- Figure 103: Membership types – Costco, by household income, March 2014
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- Figure 104: Membership types – Costco, by race/Hispanic origin, March 2014
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- Figure 105: Membership types – Costco, by marital status, March 2014
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- Figure 106: Membership types – Costco, by household size, March 2014
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- Figure 107: Membership types – Costco, by presence of children under 18 living in household, March 2014
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- Figure 108: Membership types – Costco, by employment groups, March 2014
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- Figure 109: Membership types – Costco, by primary residence, March 2014
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- Figure 110: Membership types – Sam's Club, by gender and age, March 2014
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- Figure 111: Membership types – Sam's Club, by household income, March 2014
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- Figure 112: Membership types – Sam's Club, by race/Hispanic origin, March 2014
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- Figure 113: Membership types – Sam's Club, by marital status, March 2014
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- Figure 114: Membership types – Sam's Club, by household size, March 2014
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- Figure 115: Membership types – Sam's Club, by presence of children under 18 living in household, March 2014
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- Figure 116: Membership types – Sam's Club, by employment groups, March 2014
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- Figure 117: Membership types – Sam's Club, by primary residence, March 2014
- Reasons for shopping at warehouse clubs
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- Figure 118: Reasons for shopping at warehouse clubs, by marital status, March 2014
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- Figure 119: Reasons for shopping at warehouse clubs, by household size, March 2014
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- Figure 120: Reasons for shopping at warehouse clubs, by presence of children under 18 living in household, March 2014
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- Figure 121: Reasons for shopping at warehouse clubs, by employment groups, March 2014
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- Figure 122: Reasons for shopping at warehouse clubs, by generations groups, March 2014
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- Figure 123: Reasons for shopping at warehouse clubs, by primary residence, March 2014
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- Figure 124: Reasons for shopping at warehouse clubs, by area of living, March 2014
- Reasons for not shopping at warehouse clubs
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- Figure 125: Reasons for NOT shopping at warehouse clubs, by marital status, March 2014
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- Figure 126: Reasons for NOT shopping at warehouse clubs, by household size, March 2014
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- Figure 127: Reasons for NOT shopping at warehouse clubs, by presence of children under 18 living in household, March 2014
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- Figure 128: Reasons for NOT shopping at warehouse clubs, by employment groups, March 2014
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- Figure 129: Reasons for NOT shopping at warehouse clubs, by area of living, March 2014
- Shopping behavior at warehouse clubs
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- Figure 130: Shopping behaviors at warehouse clubs, by marital status, March 2014
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- Figure 131: Shopping behaviors at warehouse clubs, by household size, March 2014
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- Figure 132: Shopping behaviors at warehouse clubs, by presence of children under 18 living in household, March 2014
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- Figure 133: Shopping behaviors at warehouse clubs, by employment groups, March 2014
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- Figure 134: Shopping behaviors at warehouse clubs, by generations groups, March 2014
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- Figure 135: Shopping behaviors at warehouse clubs, by primary residence, March 2014
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- Figure 136: Shopping behaviors at warehouse clubs, by area of living, March 2014
- Factors to encourage more warehouse club shopping – current shoppers
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- Figure 137: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by gender and age, March 2014
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- Figure 138: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by marital status, March 2014
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- Figure 139: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by household size, March 2014
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- Figure 140: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by presence of children under 18 living in household, March 2014
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- Figure 141: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by employment groups, March 2014
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- Figure 142: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by generations groups, March 2014
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- Figure 143: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by primary residence, March 2014
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- Figure 144: Factors that would encourage more warehouse club shopping among current warehouse club shoppers, by area of living, March 2014
- Factors to encourage more warehouse club shopping – non-current shoppers
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- Figure 145: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by marital status, March 2014
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- Figure 146: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by household size, March 2014
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- Figure 147: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by presence of children under 18 living in household, March 2014
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- Figure 148: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by employment groups, March 2014
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- Figure 149: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by primary residence, March 2014
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- Figure 150: Factors that would encourage more warehouse club shopping among non-warehouse club shoppers, by area of living, March 2014
- Attitudes/opinions about shopping
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- Figure 151: Attitudes/opinions about shopping – BJ's shoppers, November 2012-December 2013
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- Figure 152: Attitudes/opinions about shopping – Costco shoppers, November 2012-December 2013
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- Figure 153: Attitudes/opinions about shopping – Sam's Club shoppers, November 2012-December 2013
Appendix – Trade Associations
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