Consumer packaged goods companies (CPG) recognize the revenue potential of including the warehouse club channel in their mix but also realize the unique challenges posed by competing in the club environment. It requires tailored approaches to packaging and merchandising within the limited SKU space that club stores provide. Grossing more than $150 billion annually, this retail segment—consisting primarily of Costco, Sam’s Club and BJ’s—is expected to continue growing at a rate of more than 6 percent annually through the end of the decade.
While entering the warehouse club store mix has huge upside potential, the CPG brand manager must do so with a completely different mindset when compared to traditional retail.