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Consumption trends and the warehouse club retail format

Author

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  • Anthony Dukes
  • Tansev Geylani
  • Kannan Srinivasan

Abstract

Purpose Since emerging in 1983, warehouse club growth outpaced traditional grocery stores. Individual consumption in the U.S. grew concurrently. We investigate whether there is a connection between the emergence of the warehouse clubs and Americans' unparalleled consumption levels. Findings Using standard principles from microeconomics, we postulate that consumers' increasing acquisitiveness is sufficient to explain (a) why warehouse clubs have grown at a faster rate than the traditional retailers and (b) how the emergence of the warehouse club may have accelerated the growth in personal consumption. Conclusion Warehouse clubs may have contributed to the rapid growth of Americans' consumption rates.

Suggested Citation

  • Anthony Dukes & Tansev Geylani & Kannan Srinivasan, 2019. "Consumption trends and the warehouse club retail format," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 838-844, October.
    • Handle: RePEc:wly:mgtdec:v:40:y:2019:i:7:p:838-844
    DOI: 10.1002/mde.3049
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    Cited by:

    1. Li, Jie & Huddleston, Patricia & Minahan, Stella, 2021. "International retail format transfer: A comparison study of Australian and U.S. warehouse club members," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

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