Prepared for Growth in the Club Channel?

Upcoming Seminar - Club Store Success Ritz Carlton Amelia Island, Florida

Tim Forrest  Club Store Success

www.timforrest.com/programs/docs/ClubStoreSuccess

Amelia Island, FL September 27^th, Ritz-Carlton Amelia Island Hotel. The Club Channel is one of the largest opportunities for Food Manufacturers and in this quick seminar along with a market visit to through the channel we will analyze and build the actions necessary for you to be successful in this unbelievable channel. Maximum 12 people admitted and first sign-up from category locks exclusive participation. Included in this will be forms, templates, and insight from Tims experience introducing more than 20 companies into the Channel.

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PDF Club Store Success.pdf (435 KB)

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Club Store Success!

A warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low due to the no-frills format of the stores and selling from no touch pallet displays. In addition, customers usually are required to pay annual membership fees in order to shop. This concept also keeps shrink extremely low. There are about 1,200 total Warehouse Clubs in the USA and the volume is significant since some clubs can retail more than $400 Million per year in a single location. Review my Club Stotre Calculator for your food products at

http://www.goodfoodsales.blogspot.com... www.timforrest.com

Are you selling in Club Stores?

A warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low due to the no-frills format of the stores and selling from no touch pallet displays. In addition, customers usually are required to pay annual membership fees in order to shop.  This concept also keeps shrink extremely low.  There are about 1,200 total Warehouse Clubs in the USA and the volume is significant since some clubs can retail more than $400 Million per year in a single location.

The concept is similar to the consumers' cooperative supermarkets found in Europe, though using bigger stores and not co-operatively owned.

Costco Wholesale, operates in the USA, Canada, UK and other countries Sam's Club, operates in the USA and other countries.

BJ's Wholesale Club, operates in the USA only

Makro, operates in Europe, previously operated in the USA and was my business marketing exposure to club store format, then later Sam's, and Costco.

PriceSmart, operates in Central America and Caribbean

What actions are you taking to grow your business? Send a note or comments to here also, follow my updates via email here. I want to hear about your success!

Club Stores are a top food sales outlet!

Mintel Reports recently asked about 1,700 adults where in the past month they purchased food for their home and the results are below.  Consumers shop in multiple formats with Clubs in the #3 position and are you approaching the opportunity within channel in an appropriate channel specific product and program presentation?

Grocery Outlets Where Consumers Buy Groceries
Outlets where groceries are purchased over prior 30 days, October 2009 Total % Users


Supermarket 83%


Walmart 48%


Club Store (eg Costco, Sam’s Club) 28%


Mass merchandiser “Supercenters” other than Walmart (eg Super Kmart or SuperTarget that sell groceries) 27%


Drug store (eg Walgreens, CVS) 26%


Natural grocery store (eg Whole Foods Market, Trader Joe’s) 15%


Convenience store (eg 7-Eleven, bodega, “corner” store) 13%


Have not bought groceries from any of the above places in past month 1%

Base: 1,645 internet users aged 18+ that are the primary grocery shoppers in households
Source: Mintel Reports

What actions are you taking to grow your business? Send a note or comments to Tim, also follow me on Twitter and see my retail photo notebook.. I want to hear about your success!

© Tim Forrest 2010. All rights reserved

Can you see how the image of the bowl overlaps two packages?

The Wareshouse Clubstore package graphic designer understands club store pallets and the visual billboard impact of a pallet display.

Take advantage of the full pallet opportunity to get your branding and product message to the club store consumer.

What actions are you taking to grow your business? Send a note or comments to here also, follow my updates via email here. I want to hear about your success!

Why Costco dropped Coke!

The issue of Costco Wholesale dropping Coke from their buildings is unfortunately a non-event for both parties. Yes, Coke will probably get back into Costco in the future and Brands do matter! This action occurred because of Costco’s demands, Cokes view of Costco, and consumer shopping patterns in clubs.

Costco Wholesale has long held that Coke is not supporting their club format and business model. For example, this is not the first time Costco has dumped a Coke item and it will not be the last. With the big intro of Coke Zero, Costco brought the item in for a few weeks and quickly deemed it not acceptable in unit movement and dropped it from their buildings. Coke just does not do the things that Costco would like to see in order to promote the drink section and the Club Channel at Costco.

Costco members shop regularly in other store formats and will find their specials and Coke fix waiting for them as usual in these locations. Consumers don’t like shopping this aisle in club, the packs can be heavy, and they are looking for specials and loss leaders found in other formats not offered in Costco. Consumers will continue to consume the same amount of Coke, if not more in the coming year regardless of the Costco situation.

When you add to all these factors the inside sales numbers that Coke tabulates on Costco you start to understand why this issue reached this level. Coke is losing very little in this deal. Costco is the highest volume club retailer but when compared to Sam’s Club, Coke sees a company with less than 20% of the sales volume in Sams. Coke also wants to continue to service the locations off their trailers and not run the pallets through the Costco redistribution warehouse nor do they plan on offering any special packs for Costco when they are enjoying such sales success at Sams due to the high degree of product purchased for resell.

What actions are you taking to grow your club business? Send a note or comments to here also, follow my updates via email here. I want to hear about your success!