Study Projects Club-Channel Growth

NEW YORK — The warehouse club channel will represent the best opportunity for growth for CPG companies during the next three years, according to a study released this week by Deloitte here.

Nearly nine out of 10 — 89% — of CPG executives surveyed by Deloitte said they expect their company’s sales through the warehouse club channel to increase during that time. That compares with 49% who said they expect sales in the grocery channel to increase during that three-year period. Eighteen percent said they expect sales in the grocery channel to decline.

Most CPG and retail executives surveyed — 79% — expect warehouse clubs to increase the number of food, household goods and personal care CPG SKUs they offer, and 75% expect them to expand their geographic presence.

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“Consumer products companies are responding to the increased sales and branding opportunities in the warehouse club channel, particularly in expanding segments traditionally dominated by grocery and mass merchandise channels,” said Pat Conroy, vice chairman and consumer products leader, Deloitte. “Club retailers have been remodeling existing stores, including allocating more space for food — particularly organic, healthy and fresh offerings — and personal care products. These retailers also continue to provide a variety of services and benefits to members — whether it is for personal consumption or for the member’s business.”

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