Warehouse store
Encyclopedia
A warehouse store, as opposed to a warehouse club
, is a retail
location with a limited variety of merchandise sold in bulk
at a discount
to customer
s. Unlike a warehouse club, warehouse stores do not require their patrons to obtain a membership nor do they require the payment of any fee
s.
This type of store is also referred to as a "Big Box
" or "Price-Impact" store because of the spartan, warehouse
style of the interior and the low prices. These stores tend to feature black text on a yellow background in marketing and in decor.
warehouse store chains include WinCo Foods
, Food 4 Less
, Foods Co., Super Saver Foods
, and Aldi
.
Many warehouse stores are operated by traditional grocery chains both as a way to attract lower income, value conscious consumers and to maximize their buying power in order to lower costs at their mainstream stores. Notable examples of corporations who operate warehouse stores include United States
chains Kroger
and Albertsons LLC
and the smaller Sacramento
-based Nugget Market. However, WinCo Foods
is an exception as it is a warehouse chain of its own and not part of a larger chain of traditional supermarkets like Safeway
, Kroger
, or Supervalu
.
Features of warehouse store or warehouse club:
Warehouse club
A warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low...
, is a retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
location with a limited variety of merchandise sold in bulk
Bulk purchasing
Bulk purchasing is buying products in large quantities at a lower price per item, or unit price, than is available for smaller quantities. Wholesale is selling or related to selling goods in large quantities for resale to the consumer. Retailing is buying products in bulk at wholesale, and selling...
at a discount
Discounts and allowances
Discounts and allowances are reductions to a basic price of goods or services.They can occur anywhere in the distribution channel, modifying either the manufacturer's list price , the retail price , or the list price Discounts and allowances are reductions to a basic price of goods or services.They...
to customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
s. Unlike a warehouse club, warehouse stores do not require their patrons to obtain a membership nor do they require the payment of any fee
Fee
A fee is the price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup.Traditionally, professionals in Great Britain received a fee in contradistinction to a payment, salary, or wage, and would often use guineas rather than pounds as units of account...
s.
This type of store is also referred to as a "Big Box
Big-box store
A big-box store is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store...
" or "Price-Impact" store because of the spartan, warehouse
Warehouse
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload...
style of the interior and the low prices. These stores tend to feature black text on a yellow background in marketing and in decor.
Examples in the United States
Notable United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
warehouse store chains include WinCo Foods
WinCo Foods
WinCo Foods is an employee-owned supermarket business headquartered in Boise, Idaho. The company's name was decided by the employees both in the stores and the distribution centers in a contest to rename the company, settling on "WinCo," for the five states in which the company operates its...
, Food 4 Less
Food 4 Less
Food 4 Less is a national price-impact warehouse grocery chain, currently owned by Kroger. It is a no-frills grocery store where the customers bag their own groceries at the checkout...
, Foods Co., Super Saver Foods
Super Saver Foods
Super Saver Foods is a United States price-impact grocery franchise. It is currently owned by Albertsons LLC. It is a no-frills grocery store where the customers bag their own groceries at the checkout...
, and Aldi
ALDI
ALDI Einkauf GmbH & Co. oHG, doing business as ', short for "Albrecht Discount", is a discount supermarket chain based in Germany...
.
Many warehouse stores are operated by traditional grocery chains both as a way to attract lower income, value conscious consumers and to maximize their buying power in order to lower costs at their mainstream stores. Notable examples of corporations who operate warehouse stores include United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
chains Kroger
Kroger
The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
and Albertsons LLC
Albertsons LLC
Albertsons LLC is a North American grocery company based in Boise, Idaho, with over 240 supermarkets located in Arizona, New Mexico, Colorado, Texas, Louisiana, Arkansas, and Florida under the Albertson's and Super Saver Foods banners...
and the smaller Sacramento
Sacramento, California
Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...
-based Nugget Market. However, WinCo Foods
WinCo Foods
WinCo Foods is an employee-owned supermarket business headquartered in Boise, Idaho. The company's name was decided by the employees both in the stores and the distribution centers in a contest to rename the company, settling on "WinCo," for the five states in which the company operates its...
is an exception as it is a warehouse chain of its own and not part of a larger chain of traditional supermarkets like Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
, Kroger
Kroger
The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
, or Supervalu
SuperValu
SuperValu or Supervalu is a name used by grocery chains in multiple countries:* SuperValu * SuperValu * SuperValu * See also SuperValue, supervalue...
.
Features of warehouse store or warehouse club:
- No frills and no service outlets
- Generally carry non-food items but some may carry food items
- Located in low rent area