| SIC Codes: | 5399 |
| NAICS Codes: | 452910 |
The US warehouse club and superstore industry includes about a dozen companies with some 4,000 stores and combined annual revenue of about $390 billion. Major companies include Sam's Club (Wal-Mart); Costco Wholesale; BJ’s Wholesale Club; and Meijer. The industry is highly concentrated: the top four companies account for more than 90 percent of revenue.
Demographics and small business growth drive demand, and spending in warehouse clubs generally resists economic cycles. The profitability of individual companies depends on high volume sales, low-cost purchasing, and efficient distribution. Large chains dominate the market due to advantages in purchasing, distribution, and finance. The industry is capital-intensive: average annual revenue per employee is about $330,000.
Major products sold by warehouse clubs are groceries (35 percent of revenue); drug, health, and beauty aids (10 percent); TVs, DVDs, video cameras, and other electronics (5 percent); and prescriptions (4 percent). Other products include cleaning products and appliances. Most products are available only in large sizes or bulk quantity. Warehouse clubs may also have onsite gas stations, pharmacies, optical centers, or food courts.
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