ACNielsen's Club Store Shopper

The warehouse club channel has grown 36% in total revenue over the past four years, according to a study by ACNielsen. Of the three top chains, Sam's Club is the leader in penetration among all U.S. households at 28%, with Costco at 17% and BJ's Wholesale at 7%. While overall penetration has increased slightly to 51%, ACNielsen's Warehouse Club Consumer study points out that, on paper, the penetration growth looks disappointing, considering the 29% increase in total channel outlets since 2001. Still, the club channel has far fewer stores than any other food and beverage channel.The study attributes the channel's revenue growth to its ability to attract an affluent, loyal group of customers, finding that 67% of U.S. households with annual income above $70,000 visit a warehouse club annually. This group visits a club an average 14 times each year and spends $99 per trip. The penetration rate drops sharply among lower income demographics: For example, 49% of households earning between $30,000 and $39,000 shop the channel, which represents a slight decrease compared with 2000. The study defined three primary types of club shoppers: top, medium and light. The top tier, which represents one-third of all shoppers, makes 23 trips per year and spends $95.39 per trip, accounting for 68% of total trips and 78% of dollars spent. Medium shoppers make eight trips per year and spend $62.07 per trip -- higher than the average basket for top shoppers in most other channels. (Top shoppers at supermarkets, for instance, spend only $44.19 per trip.) Light shoppers visit twice per year and spend $41.22.The study suggests that higher basket ring directly correlates to greater trip frequency, and consequently that warehouse clubs should focus on increasing the number of trips made by light shoppers rather than getting shoppers to spend more per trip. It also examines opportunities for the club channel to capture sales from non-food channels: It reveals that 90% of top club shoppers visit the home improvement channel, 65% the home electronics channel, 42% pet supply, 41% toy and 61% office. The study also looked at the best-selling categories in the channel and found that all top 10 mega-categories, with the exception of snacks, grew sales in 2004 versus 2003. The total food and beverage category increased 7% in 2004 versus 2003. Dairy, meat and fresh produce all recorded double-digit growth, suggesting the perception that shoppers largely visit club stores to buy multi-packs of shelf-stable goods is faulty. The top 10 categories with buyer demographics most similar to top club shoppers are: Bottled waterPhotographic suppliesElectronics, records and tapesSkin carePrepared dressings/salads, deliShaving needsYogurtWineOral hygieneKitchen gadgets Among the study's other findings:Weekly sales in the channel during the holiday period increase 11%, well behind increases for mass merchants and supercenters.Female shoppers spend an average of $84.96, versus $80.48 for male shoppers. Club stores have a great draw, with 42% of shoppers traveling more than 11 miles to their favorite store.

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