Industry Analysis & Industry Trends
The Warehouse Clubs and Supercentres industry was able to effectively contend with the economic downturn as consumers made more value purchases offered by industry operators. In the five years to 2021, the industry is forecast to continue growing, albeit at a slower pace, as some of the industry's largest operators shift focus away from supercentres and toward smaller format department stores. Per capita disposable income and consumer confidence will continue to increase as the economy strengthens, providing consumers with more discretionary income for compulsory purchases at warehouse clubs and supercentres... purchase to read more
Industry Report - Starting a New Business Chapter
The Warehouse Clubs and Supercentres industry has high barriers to entry. The industry exhibits a high level of market share concentration with the top two players dominating the industry; therefore, prospective operators planning to enter this industry will encounter strong competition from existing players. The dominance of players fluctuates by region; consequently, economies of scale vary depending on where an operator plans to launch new stores.
Large club stores and supercentres benefit from significant discounts in purchasing, distribution and advertising due to their size. In order to set up a large and competitive store, considerable capital is required to purchase merchandise, buy or lease premises in which to sell the merchandise and hire and train employees... purchase to read more