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Club Store Packaging and Design Strategy
Sam's Club leads in the number of locations among warehouse retailers, followed by Costco and BJ's, with Costco generating the highest revenue. Club stores focus on stocking the top 20% best-selling products at discounted prices, creating a unique shopping experience. Packaging design for club stores should effectively communicate product information quickly and be visually appealing from multiple angles.
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Club Store Packaging and Design Strategy
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- 4. Sam’s Club hasthe most locations of the 3 retailers, and also has a larger presence in Middle America Sam’s Club 620 Costco 460 BJ’s 200
- 5. Costco is thelargest in terms of revenue, while Sam’s is second & BJ’s is a small regional player. Sam’s Club Costco BJ’s $56B $75B $13B
- 6. Costco has thelar gest stores, and the least SK U’s. BJ’s has the smallest stor es and the most SK U’s. Sam’s Club Costco BJ’s 113KSQ/FT AVG 143KSQ/FT AVG AVG 134KSQ/FT
- 7. How does BJ’sstock so many SKU’s in a small space? By merchandizing half pallets among other things. ? Sam’s Club Costco BJ’s
- 8. The goal withthe club stor e experience? to make you feel like a kid in a candy stor e CANDY
- 9. EDUCATION HOUSEHOLD SIZE FEMALE RACE AGE 35-54 GENDER SAM’S: 51% COSTCO: 49% BJ’S: 45% COSTCO: 51% HHI 3-5+HH CAUCASIAN THE CLUB STORE SHOPPER COLLEGE + POSTGRAD SAM’S: 22% BJ’S: 31% COSTCO: 33% $100K+ SAM’S: 38% BJ’S: 56% *Scarborough research, 2014
- 10. COLLEGE + POSTGRAD HOUSEHOLD SIZE FEMALE RACE AGE 35-54 GENDER SAM’S: 51% COSTCO: 49% SAM’S: 38% BJ’S: 45% 3-5+HH CAUCASIAN THE CLUB STORE SHOPPER BJ’S: 56% HHI SAM’S: 22% BJ’S: 31% COSTCO: 33% $100K+ EDUCATION COSTCO: 51% *Scarborough research, 2014
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- 12. At retail, 80%of r evenues come from 20% of the products. Club stores turned that r atio on its head. Club stores stock only the best selling 20%, and offer them at deep discounts.
- 13. Why Should YouCare?
- 14. You Can’t YouCan’t NOt To!!! NOt To!!!
- 15. MISC CHANNEL X%ANNUALLY E-COMMERCE X% ANNUALLY MISC CHANNEL X% ANNUALLY MISC CHANNEL X% ANNUALLY
- 16. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 88.6 % EXPECT SALES GROWTH In The 69.4 % % OF CPG Execs THAT Following Channels 49.3 % WAREHOUSE CLUB DOLLAR GROCERY *Deloitte Consulting, 2013
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- 18. Club Store packagingshould be designed like billboard advertising
- 19. Club packaging shouldvisually communicate within 5 seconds fr om 5 feet away
- 20. Different club retailersmerchandize differently. Costco merchandizes on 48” side of pallet , while BJ’s & Sam’s merchandize on the 40” side of the pallet .
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- 28. We define “Billboarding”as designing 2 (or mor e) package facings to cr eate a continuous design consisting of product photography, color, patterns and/or other elements that overlap multiple facings.
- 29. Billboarding is atechnique commonly used in gr ocery and other channels
- 30. Billboarding is particularlyrelevant at club
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- 33. If you havesubstantial equity with the look of y our product, or your packaging, logo, or some other distinctiv e characteristic... Lead with that distinctiv e imagery!
- 36. Shoppable from 5sides
- 38. When designing ClubStore Packaging, your designs should work and communicate clearly when your packages are stacked on pallets, from all 4 sides as w ell as the top of the pallet .
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- 44. For more insighton club stor e design & strategy, visit us online at worksdesigngroup.com, or give us a ring at 856.665.4774