Warehouse club

Summary

A warehouse club is a retail store, usually selling a wide variety of merchandise but limited assortment (SKUs), in which customers may purchase large, wholesale quantities of products, which makes these clubs attractive to both ordinary consumers and small business owners. The clubs are able to keep prices low due to the no-frills format of the stores. They are distinguished from traditional cash-and-carry wholesale businesses in that their warehouses are substantially larger in size, and they do not cater purely to businesses but also allow some or all types of consumers to obtain memberships. They are also distinguished from warehouse stores in that they usually charge annual membership fees and require presentation of proof of membership to both enter the warehouse and complete a purchase. A warehouse club is a retail format within the club channel industry sector.