Warehouse clubs are continuing to attract customers with their price, according to a study from HSA Consulting, reported Progressive Grocer (March 29).
When comparing retail prices for 97 perishable, dry grocery and sundry items in 19 categories in Miami, FL, Costco was the least expensive overall, and the top three club chains’ average prices were 24% cheaper than Walmart and Amazon, and more than 53% cheaper than Publix Super Markets for dry groceries and sundries. The price gap widened even further when perishables were added, the study found.
Club bulk-pack pricing and supermarket loyalty card prices both affected the study results, but no allowance was made for premium club member “cash back,” which would further reduce club prices by 1% to 2%, according to HSA Consulting.
In spite of competition, warehouse clubs have grown faster than overall U.S. retail sales. In fact, consumers will commonly hold both a warehouse membership and a Prime membership, but rarely two warehouse memberships, the study found.
But are warehouse clubs well placed to compete with Amazon? Many factors point to yes.
For the full story, go to this week’s Food Institute Report.
In The Food Institute's recent webinar "Achieving a self-sustaining business model: Top 3 trends companies need to think about post-COVID-19," Greg Wank, CPA, CGMA, partner and leader of Anchin's food and beverage group, as well as David Eben founder and CEO of Carrington Farms, discussed how to have a...read more
Chris is a business writer and market analyst that focuses on the Markets, Legal and Washington sections of the Food Institute Report. In addition, he assists in compiling data for various Food Institute publications throughout the year. He invites you to contact him via email at firstname.lastname@example.org to talk about anything food-related.
There are no comments, yet. Why don't you add one?
10 Mountainview Road
Upper Saddle River, NJ 07458
Food Institute reps are available to answer your questions
BECOME A MEMBER
For close to 90 years, The Food Institute has been the best "single source" for food industry executives, delivering actionable information daily via email updates, weekly through The Food Institute Report and via a comprehensive web research library. Our information gathering method is not just a "keyword search."