Anne Bieler

Consumers Go (Warehouse) Clubbing

March 4, 2010

FROM RETAILWIRE:
Wall Street may have had problems with earnings per share coming in lower than predicted for Costco and BJ's yesterday, but the numbers suggest those two chains along with Sam's are in a pretty good shape compared to many others in the grocery business. Are warehouse clubs fully exploiting the advantages they have over retail food competitors?      [more...]

Warehouse shoppers are extremely loyal--the limited selection makes the shopping a true destination trip--shoppers know what to expect, and easier to select. Products in these channels have been carefully considered for their value to target shoppers--if it doesn't sell, it's gone. Without the advertising and promotional support, products have to "sell themselves" from the aisle--the product and package format have to be right to deliver.

There is opportunity ahead in working with manufacturers to develop products that resonate with shopper wants and needs. Loyal core shoppers, great data, control of shelves--opportunity to differentiate successfully in many categories.