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Corporate Strategy Case Study

Case Title:

Warehouse clubs in the US

Publication Year : 2005

Authors: Bindu Kannan

Industry: Retailing


Case Code: COS0041B

Teaching Note: Not Available

Structured Assignment: Not Available

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Warehouse clubs in the US registered a phenomenal growth during the last decade of 20th century and the early decade of the 21st century. Costco, Sam’s club and Berkley and Jansen (BJ’s) were the three leading warehouse clubs in the US. Warehouse clubs operated as no-frills, self-service format which offered lower prices as compared to other retailers. It offered a narrow assortment of branded food and general merchandise items within a wide range of product categories. Customers were limited to members who paid an annual fee. Warehouse clubs redefined discounting and many retailers were interested in its business model.

Pedagogical Objectives:

  • The state of wholesale club industry in the US
  • Business strategy of warehouse clubs

Keywords : Warehouse clubs; Costco; Sam's Club; BJ's; Merchandising; Business Model; Corporate Strategies Case Study; Wholesale club industry; Discounting; No-fills; Self-service formats; Membership; Distribution; supply chain; Retail in the US; Same store sales

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