Warehouse Clubs Industry Analysis

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DESCRIPTION OF INDUSTRY
Introduction:
Companies in this segment provide an extensive variety of goods to customers and businesses. Main firms include Wal-Mart, Target, Kroger, Costco, and Home Depot, which are based in the US, as well as Tesco, which is a UK company, Carrefour based in France, and Metro based in Germany.
Warehouse Clubs & Superstores Market Size
As the market is highly competitive, retailers are offering the mix of products in a more customer friendly format, to give more accessibility to customer many stores are shifting their segment to small stores.
For the reason of wide-ranging product collection and markets, allowing the business to enlarge distribution, publicity and management support. The quick increase in the number of businesses has slowed.
Approximately dozen organizations of …show more content…
Big industry stores will be one of the Retail industry's main segments of an estimated multiyear increase in spending, this will be reinforced by rising consumer sureness. Consequently, revenue was projected to increase 2.2% in 2015 alone.
Growth:
Sales in warehouse clubs and stores increased significantly in recent years, because of buyer’s desire for low prices. Organizations have grabbed the low price concept and growing quickly. Growth has originated essentially at the expense of grocery stores and department stores. Due to population growth in foreign countries, organizations have focused to develop and expand internationally 8. Psychologically customers are attracted toward the warehouse clubs. Sam’s club and Costco are expanding their branches to various locations and countries.
Competitive outlook:
Costco is #2 in terms of sales (116,199.00M FY 2015). There are many other small retailers who have small revenue and market share in the industry, but the main competitors are:
• Walmart and
• Tesco
(Refer Exhibit 2)
Robust

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