Club Warehouse Format Booms Globally, Led by Walmart and Costco
The club warehouse format, popularised by Atacadão in Latin America, is booming globally. This format, which includes cash-and-carry and Atacadão variations, targets the growing middle class. Metro AG, the leader in cash-and-carry, has seen its operations transition to new firms like Ceconomy AG and AS GUM, while Walmart and Amazon lead the international retail scene.
The club format's success lies in its unique offerings. Value-added services, unique items, luxury products, and bulk purchases drive membership and renewal rates. This format caters to small businesses and the middle class, which is growing at a rate of 100 million people per year, particularly in China, South Asia, and Latin America.
Metro AG, with over 600 locations in 21 countries, pioneered the cash-and-carry format. However, in the past decade, the company has sold many of its club warehouse operations. While some sales led to new firms like Ceconomy AG, most resulted in the transfer of existing businesses to new owners like AS GUM.
Walmart, the top international retailer, maintains its position with Amazon, Schwarz Group, Aldi, and Costco following. Costco, with over 800 locations worldwide, leads the club warehouse format. These formats target key markets with variations like cash-and-carry, club warehouse, and Atacadão. Sam's Club, owned by Walmart, operates in the U.S., Mexico, China, and other countries under different banners.
The club warehouse format, with its focus on unique offerings and bulk purchasing, continues to grow worldwide. As the middle class expands, particularly in emerging markets, so too will the demand for these services. While Metro AG has sold many of its operations, the format's leaders, including Walmart and Costco, maintain a strong global presence.
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