Industry Analysis & Industry Trends
Demand for the Warehouse Clubs and Supercenters industry has remained consistent during the past five years. As disposable income dwindled during the recession, consumer confidence plummeted and business sentiment weakened. Many households and businesses turned to industry stores to take advantage of discounted prices. However, after a decade of rapid expansion, the industry has begun to mature. Additionally, the availability of space for new locations has become limited, and the introduction of different product lines has been slow. These factors have created a saturated market, which has slightly slowed the industry's expansion. Nonetheless, the industry is forecast to increase its share of the retail sector over the five years to 2019... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has a high level of concentration with the top two players expected to account for an estimated 81.5% of market share in 2014; therefore, prospective operators planning to enter this industry will encounter strong competition from existing players. The dominance of players fluctuates by region; as such, the economies of scale vary depending on where an operator plans to launch new stores.
Construction and development costs for a full-size (i.e. about 112,000 square feet) store range from $5.0 million to $7.0 million. Land acquisition costs for a club generally range from $3.0 million to $5.0 million, but can be significantly higher in some locations... purchase to read more