Competition Between The Wholesale Club Industry

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The competition between the wholesale club industry is pretty strong but is mostly dominated by the three main competitors which are: Costco, Sam’s club and BJ’s Wholesale club. These three wholesale clubs for the most part dominate the industry and take away customers from other retail stores because they can offer much lower prices, brand name items and a wide variety of items to purchase from them. When it comes to shares of warehouse sales, Costco had roughly 56 percent of sales, Sam’s club had 36 percent and BJ’s wholesale had a low 8 percent. Unlike most retail stores, these three display all of their items on pallets or their inexpensive shelving which provides them with low cost on décor, labor and advertising. Between these three wholesale clubs, I would say that the rivalry among them is the strongest force. This is strong because these three wholesale clubs all compete with each other for the same customers. Sam’s club and Costco both have clubs within the United States and also in other countries, with BJ’s main focus which is on the east coast of the U.S. Costco and Sam’s club have high competition between them and Costco has way more market share then BJ’s. The second best is the power of buyers. The market of wholesale is definitely a buyer’s market because they can switch and buy whatever it is that they need from one of the other two clubs. Consumers are always looking for lower prices which makes the demand in the industry very high. The threat of

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