Costco Wholesale - Competitors

Costco Wholesale Competition

Now Viewing Costco Wholesale's competition in: Warehouse Clubs and Superstores

Recent Developments

Sales Rose in 2007 - Sales at US warehouse clubs and superstores rose 9 percent in 2007 compared to 2006. Growth in the sector more than doubled the 4.1 percent growth in total retail sales during the period. Experts say that weakening US economic conditions may slow sales growth in 2008.

US Tax Rebate may Boost Spending - US warehouse club and superstore companies hope that an economic stimulus package signed by President Bush in February 2008 will boost consumer spending. The $152 billion measure provides tax rebate checks of up to $600 per working individual and $1,200 per married couple, plus $300 per child. US retail sales rose just 0.5 per cent in January 2008, the smallest January increase ever.

Wal-Mart Requires Shippers to Use RFID Tags - Wal-Mart, the world's largest retailer, began requiring suppliers shipping to its Sam's Club distribution center in DeSoto, Texas, to start applying radio frequency identification (RFID) tags to their pallets as of January 2008. Suppliers that don't will be charged $2 per pallet. The RFID tag requirement will go into effect at additional Sam's Clubs throughout 2008.

Competitive Landscape

Demographics and small business growth drive demand, and spending in warehouse clubs generally resists economic cycles. The profitability of individual companies depends on high volume sales, low-cost purchasing, and efficient distribution. Large chains dominate the market due to advantages in purchasing, distribution, and finance. Average annual revenue per employee is about $230,000.

Full Industry Overview For Warehouse Clubs and Superstores

Warehouse Clubs and Superstores Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of the US retail industry, which includes warehouse clubs and superstores, is forecast to increase at an annual compounded rate of 4.2 percent between 2007 and 2012.

Retail Industry Growth Level

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.