By Shefali Kapadia
A hallmark of every Costco location — aside from food court hot dogs — is the club retailer’s immense grocery section. Multipacks of tortilla chips, jumbo boxes of cereal and big stacks of flavored water line the aisles.
In today’s economy, the grocery section at club retailers has become even more popular due to the value that large packs provide to consumers.
Costco reported sales growth in food over the last year, while sales fell in non-food items, electronics and jewelry. BJ’s said its food business has outgrown its general merchandise business in recent years. In 2022, unit sales of snacks grew 3.4% in the club channel compared to 2021, while units fell in grocery, convenience, mass and dollar, according to a Circana webinar on the snacking market. Plus, dollar sales grew the most of any channel in club.
“Every CPG is at a point where they’ve recognized club is winning with consumers,” said Todd Ruberg, partner at retail and CPG consultancy Simpactful, and former VP at Procter & Gamble.
SHEFALI KAPADIA 