Fully stocked: Revenue will grow slightly amid rising disposable income and corporate profit

Due to the low-cost, high-value products they offer, operators in the Warehouse Clubs and Supercenters industry typically perform well regardless of the macroeconomic climate; however, when businesses and consumers have deeper pockets, they are likely to spend more at industry establishments. Despite overall industry growth, steep declines in the world price of crude oil have kept revenue gains slow over the period. Many industry operators retail fuel at establishment-run gas stations; therefore, as the world price of crude oil declined over the five years to 2017, the industry was forced to lower gasoline prices, which stifled revenue growth. Over the next five years, industry revenue will rise in line with the growing economy and recovering oil prices...read more.

Industry Statistics & Market Size
Revenue
$460bn
Annual Growth 12-17
0.9%
Forecast Growth 17-22
Profit
Employment
1.5m
Businesses
5,570

Industry Threats & Opportunities

  • Despite overall industry growth, steep declines in the world price of crude oil have kept revenue gains slow over the period
  • As the world price of crude oil dropped, operators were forced to drop their gas prices
  • Revenue will be supported by increased crude oil prices
  • Industry Report - Industry Key Buyers Chapter

    This industry is highly concentrated, with the top four companies accounting for an expected 95.6% of industry revenue in 2017. Of these four companies, the largest two, Walmart and Costco, account for 71.5% and 17.5% of industry market share, respectively. Very few companies operate in this industry, with the numbers of industry enterprises expected to stand at a low 16 companies in 2017. The prevalence of industry behemoths like Walmart, make it difficult for new operators to successfully enter the industry. Given the high level of industry concentration and substantial capital required to generate enough revenue to compete with the major players, IBISWorld expects concentration to remain high and industry entrants to remain low...purchase to read more.

    Additional Insights for the Warehouse Clubs & Supercenters Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Warehouse Clubs & Supercenters Industry are

  • Having a loyal customer base
  • Ability to control stock on hand
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Per capita disposable income in the Warehouse Clubs & Supercenters industry impact industry performance..

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    What's in this report

    What is the Warehouse Clubs & Supercenters Industry?

    This industry includes large stores that primarily retail a general line of grocery products and merchandise items (e.g. apparel and appliances). Warehouse clubs offer customers a wide selection of goods, often in bulk and at discounted prices, in exchange for a membership fee paid by each customer. Supercenters are large discount department stores that also sell perishable groceries. However, unlike warehouse clubs, supercenters do not have membership requirements for customers.

    Industry Products
  • Food and beverages
  • Fuel and other
  • Home and appliances
  • Apparel and accessories
  • Health, beauty and wellness
  • Industry Activities
  • Retailing groceries
  • Retailing furniture
  • Retailing apparel
  • Retailing appliances
  • Retailing digital and print media
  • Retailing personal care products
  • Retailing automotive fuels (e.g. gasoline)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Per capita disposable income
  • Percentage of services conducted online
  • World price of crude oil

  • Current Performance
  • Higher incomes, higher revenue
  • Oil prices boost profit, decrease revenue
  • Reputation and growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Macroeconomic drivers
  • Rising competition
  • Table: Warehouse Clubs & Supercenters Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Warehouse Clubs & Supercenters Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Day Care
  • Bed & Breakfast & Hostel Accommodations
  • Hair & Nail Salons
  • Civic, Social & Youth Organizations
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Footwear Wholesaling
  • Furniture Wholesaling
  • Grocery Wholesaling
  • Home Furnishing Wholesaling
  • Men's & Boys' Apparel Wholesaling
  • Soft Drink, Baked Goods & Other Grocery Wholesaling
  • Sporting Goods Wholesaling
  • TV & Appliance Wholesaling
  • Women's & Children's Apparel Wholesaling

  • Products & Services
  • Food and beverages
  • Home and appliances
  • Health, beauty and wellness
  • Fuel and other
  • Apparel and accessories
  • Chart: Warehouse Clubs & Supercenters Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Households with incomes less than $50,000
  • Households with incomes greater than $50,000
  • Chart: Major Market Segmentation for the Warehouse Clubs & Supercenters Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Warehouse Clubs & Supercenters

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Warehouse Clubs & Supercenters Industry

  • Industry Globalization
    Wal-Mart Stores Inc., Costco Wholesale Corp.,
  • Table: Wal-Mart Stores Inc. - financial performance
  • Table: Costco Wholesale Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Warehouse Clubs & Supercenters Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Warehouse Clubs & Supercenters Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Comparable Store Sales
  • A retail measure used to assess the true performance of retail outlets by taking out the effect of new store openings and only looking at sales growth of existing stores.
  • Homogeneous Goods
  • Items that are similar among retailers, with little or no differentiation.
  • Large-Format Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • Mass Merchandiser
  • A large retail store that offers a wide range of product categories.
  • Point Of Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Stock Keeping Units (Skus)
  • Codes used by retailers to identify the lowest level of product detail.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Warehouse Clubs & Supercenters Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Warehouse Clubs & Supercenters:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Warehouse Clubs & Supercenters market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Warehouse Clubs & Supercenters, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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