Warehouse clubs offer a similar product assortment as grocery retailers, so they benefitted from being able to remain open throughout the national lockdown in 2020. In addition, the channel particularly benefitted from increased stockpiling behaviours.
In the Philippines, two main brands continue to represent warehouse clubs, namely S&R Membership Shopping (by Puregold Price Club) and Landers Superstore (by Southeast Asia Retail). S&R Membership Shopping continues to notably dominate the warehouses competitive landscape in current value terms in 2021, further strengthening its presence through store network expansion despite the impact of the pandemic.
Given the heightened pandemic demand, warehouse clubs ventured into e-commerce in 2020. Both S&R Membership Shopping and Landers Superstore strengthened their online presence in the pandemic, though the former did this only via partnering with the third party e-commerce platform Metromart.
The dip in 2021 is only likely to be a small set back in the development of warehouse clubs, with the channel set to return to growth in 2022 and continue posting a strong performance in the forecast period. With the same economic pattern prevailing in the next few years, S&R Membership Shopping and Landers Superstore can expect constant product demand and foot traffic, with consumers continuing to bulk buy the channel’s essential products.
The business model of warehouse clubs will likely stay the same in the forecast period as the channel benefits from its wide selection of unique offerings. Filipino consumers are increasingly aware of international products, and this will likely remain a key selling point of membership shopping clubs in the forecast period.
E-commerce will also remain relevant for warehouse clubs over the forecast period with consumers increasingly adopting this new retailing channel and becoming used to its ease and convenience. This is particularly relevant for warehouse clubs given that consumers tend to bulk buy, and it would be welcome to have such bulky, heavy baskets delivered to the front door.
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Warehouse clubs are chained outlets that sell a wide variety of merchandise, typically situated in out-of-town locations, with a selling space of over 2,500 sq metres (and invariably over 4,000 sq metres in total size). Customers have to pay an annual membership fee in order to shop. The clubs are able to keep prices low due to the no-frills format of the stores and large volume SKUs. Example brands include Costco, Sam’s Club (Walmart), and Atacadão. Excludes sales attributable to membership fees and business-to-business sales. Also excludes cash & carry and warehouse outlets (which are typically oriented towards businesses, rather than consumers). Note: Local variants, such as atacarejos in Brazil, are included in this channel.
See All of Our DefinitionsThis report originates from Passport, our Warehouse Clubs research and analysis database.
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