Club Store Packaging Market Research Report Analysis and Forecasts to 2027

Club store packaging plays an important role in consumer shopping experience in a warehouse club store, which is a type of retail store dealing with variety of merchandise brought in large or wholesale quantities. Club store packaging involves merchandise in a warehouse club store being stacked on pallets to attract the attention of the consumers. Club store packaging is different than packaging for other retail formats like grocery stores or super markets. 

This is because warehouse club stores have evolved in the use of 80/20 rule. While 20 % of products in retail stores account for 80 % of its revenue, warehouse club stores stock only 20 % of these products. In traditional retail formats where packaging plays a role in highlighting and differentiating a particular brand from another, club store packaging attempts to differentiate a specific product from another.

In a traditional retail format like supermarkets where customers have option to select from wider range of brands, warehouse club stores on the other hand offer limited number of brands. Hence, a warehouse club store will focus on highlighting the functional aspects of a product like a cup of ‘Horlicks’ rather than focusing on the Horlicks brand name or logo.

Customers at a warehouse club store generally pay membership fees in order to shop at the store.  As warehouse club stores are exclusive to its members, offering an enticing shopping experience differentiates warehouse clubs from other retail formats.

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Club store packaging market is driven by strategies adopted by warehouse club store operators, primarily by three players Costco, Sam’s Club operated by Walmart and BJ’s Wholesale. Warehouse club store market in the U.S. generates revenue in excess of US$ 400 billion wherein Costco and Sam’s Club together generate sales of about US$ 140 billion. Costco is the largest player in terms of sales whereas Sam’s club has most number of locations.

One important challenge faced by club store packaging market is the prevalent use of corrugated paper material which offer strength and resistance but discourages the creation of attractive and appealing graphics that help in grabbing customer attention in the club store.