SAM'S CLUB - Competitors

SAM'S CLUB Competition

Now Viewing SAM'S CLUB's competition in: Warehouse Clubs and Superstores (primary)

Recent Developments

Stimulus Checks to Boost Wal-Mart - The economic stimulus checks being sent to American consumers are expected to boost Wal-Mart's business. The discounter has waived its check-cashing fee and lowered prices on such staples as shampoo, juice, and lunch meat in an aggressive move to lock in its lower-income customer base. Analysts expect these consumers to spend most of their stimulus checks in retail stores, as opposed to saving the extra money.

Wal-Mart, Costco Post Sales Gains - Sales at both Wal-Mart and Costco exceeded analyst expectations in April 2008. Wal-Mart's same-store sales, for stores open at least a year, rose 3.2 percent from the previous year. Same-store sales at Costco and Marshalls rose 8 percent. Analysts say that the economic slump is driving consumers from malls and department stores to discount stores.

Wal-Mart, Target Expand Pharmacies - Wal-Mart is expanding its drug program and will offer 90-day supplies of several prescription drugs for $10. The superstore also will discount several women's medications and lower prices on many of its OTC drugs. Target introduced a similar program including an assortment of $4 prescriptions.

Competitive Landscape

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. Average annual revenue per employee is about $230,000.

Full Industry Overview For Warehouse Clubs and Superstores

Warehouse Clubs and Superstores Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of the US retail industry, which includes warehouse clubs and superstores, is forecast to increase at an annual compounded rate of 4.2 percent between 2007 and 2012.

Retail Industry Growth Level

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.