Join the club: The decline in crude oil prices benefited industry profit margins

The Warehouse Clubs and Supercentres industry in Canada has fared well over the five years to 2018. Industry operators' ability to pass down lower prices to consumers on a range of merchandise has largely driven revenue growth. This was particularly significant at the start of the five-year period, when wary consumers opted to make value purchases offered by industry operators. Despite overall industry growth, steep declines in the world price of crude oil somewhat hampered revenue gains during the period. Many industry operators, such as Costco, retail fuel at establishment-run gas stations. However, the decline in oil prices benefited industry profit margins, which are heavily affected by transportation costs...read more.

Industry Statistics & Market Size
Revenue
$36bn
Annual Growth 13-18
2.8%
Forecast Growth 18-23
Profit
Employment
108,070
Businesses
15

Industry Threats & Opportunities

  • The industry is forecast to continue exhibiting growth as the market grows increasingly saturated
  • Costco and Walmart are the only players holding a notable portion of industry revenue
  • Operators will continue to benefit from anticipated strength in the general economy
  • Industry Report - Industry Analysis Chapter

    The Warehouse Clubs and Supercentres industry in Canada consists of stores such as Walmart and Costco that primarily sell a general line of grocery products and other basic merchandise, such as apparel, appliances and beauty supplies. Warehouse clubs have membership requirements while supercentres do not. However, both store types retail discounted items by leveraging their large economies of scale to receive favourable contracts with upstream manufacturers. Operators have continued to post strong growth over the years to 2018. Consumers, lured by the industry’s competitive prices and convenience of a one-stop shop, have increasingly purchased the industry’s food, beverages, apparel, home products, health aids, technology and entertainment goods. Mor...purchase to read more.

    Additional Insights for the Warehouse Clubs & Supercentres Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Warehouse Clubs & Supercentres Industry are

  • Ability to control stock on hand
  • Availability of car parking
  • Control of distribution
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Population in the Warehouse Clubs & Supercentres industry impact industry performance..

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    What's in this report

    What is the Warehouse Clubs & Supercentres Industry?

    This industry is made up of large stores that primarily retail a general line of grocery products and merchandise items (e.g. apparel). Warehouse clubs offer customers a wide selection of merchandise, often in bulk, at discounted prices, in exchange for a membership fee that is paid by each customer. Supercentres are large discount department stores that also sell perishable groceries. Unlike warehouse clubs, however, supercentres do not have eligibility requirements for customers.

    Industry Products
  • Food and beverages
  • Health, beauty and wellness
  • Home and appliances
  • Apparel and accessories
  • Fuel and other
  • Industry Activities
  • Retailing apparel
  • Retailing appliances
  • Retailing automotive fuels (e.g. gasoline)
  • Retailing digital and print media
  • Retailing furniture
  • Retailing groceries
  • Retailing personal care products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Population
  • Number of fixed broadband connections
  • World price of crude oil

  • Current Performance
  • Consumer demand expands
  • Higher incomes, higher revenue
  • Establishment growth
  • Competitors and costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Macroeconomic drivers
  • Rising competition
  • New strategies
  • Table: Warehouse Clubs & Supercentres Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Warehouse Clubs & Supercentres Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Day Care in Canada
  • Hair & Nail Salons in Canada
  • Civic, Social & Youth Organizations in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Clothing & Clothing Accessories Wholesaling in Canada
  • Floor Covering Wholesaling in Canada
  • Footwear Wholesaling in Canada
  • Furniture & Furnishings Wholesaling in Canada
  • Grocery Wholesaling in Canada
  • Sporting Goods Wholesaling in Canada
  • TV & Appliance Wholesaling in Canada

  • Products & Services
  • Food and beverages
  • Home and appliances
  • Health, beauty and wellness
  • Fuel and other
  • Apparel and accessories
  • Chart: Warehouse Clubs & Supercentres Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Households earning more than $50,000
  • Households earning $50,000 or less
  • Chart: Major Market Segmentation for the Warehouse Clubs & Supercentres Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Warehouse Clubs & Supercentres

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Warehouse Clubs & Supercentres Industry

  • Industry Globalization
    Costco Wholesale Canada Ltd., Walmart Stores Inc.,
  • Table: Costco Wholesale Canada Ltd. - financial performance
  • Table: Walmart Stores Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Warehouse Clubs & Supercentres Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Warehouse Clubs & Supercentres Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer spending (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Homogeneous Goods
  • Items with little or no differentiation between retailers.
  • Mass Merchandiser
  • A large retail store that offers a wide range of product categories.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Stock Keeping Units (Skus)
  • Codes used by retailers to identify the lowest level of product detail.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Warehouse Clubs & Supercentres market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Warehouse Clubs & Supercentres:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Warehouse Clubs & Supercentres market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Warehouse Clubs & Supercentres, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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