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        Warehouse Clubs & Superstores Industry Profile

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        Excerpt from Warehouse Clubs & Superstores Industry Profile

        Companies in this industry operate membership retail stores that sell groceries, health and beauty items, electronics, and other merchandise; the majority of items are sold in large quantities. Major companies include Sam's Club (Walmart); Costco Wholesale; BJ's Wholesale Club; and Meijer (all based in the US), as well as Carrefour (France), Metro (Germany), and Tesco (UK).

        The Asia/Pacific region, with its rising middle-class populations, is a magnet for global retailers in search of growth. Four large Asian markets (China, India, the Philippines, and Vietnam) boast GDP growth in excess of 6%. Costco Wholesale opened its first Chinese physical store in Shanghai in 2019. The US warehouse club giant also operates an online store in partnership with China's Alibaba. Costco competes with Sam's Club, which operates about 28 locations in China, and Germany's Metro with 97 stores there. China's retail market surpassed that of the US in 2016, with total sales of nearly $5 trillion compared with about $4.8 trillion in the US. China is the largest retail market even with slowing economic growth and has surpassed US retail sales, according to eMarketer. India has overtaken China in GDP growth as China's economy slows and economic liberalization and reduced controls on foreign trade and investment in India accelerate growth.

        The US warehouse club and superstore industry includes about a dozen companies with about 8,200 stores and combined annual revenue of about $550 billion.

         
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