David Stiller, an acquisition analyst, articulates the manner in which grocery stores are needed:
Everyone eats. Everyone buys food. Everyone needs to go to a grocery store to buy food. Florida’s dominant grocery chain, Publix, covers all areas of the state where you find people. As you get more people, new stores will need to service these new comers.
Remember, everyone eats and so there is always a robust network of grocery stores nearby (Stiller D., 2007).
Between our nation’s economic restoration and our demand for food, wholesale grocers are outperforming in the grocery industry, owing to their attractive bargains. Customers favor the wholesale stores for their continued efforts in which they introduce a variety of foods (and other products that many grocers don’t supply) at unbeatable prices. Amid the development of the wholesale industry, warehouse shopping has grown in popularity, and is expected to continue that growth by the industry’s three major players: Costco, BJ’s, and Sam’s Club.
The warehouse industry, a $390 billion industry, has delivered strong, positive results for the wholesale sector, and the retail industry overall. Costco reached $1 billion in revenues within its first three years, and Sam’s Club crossed $12 billion in annual revenues within 10 years of its inception. In just 2013, Sam’s Club generated about $57 billion in sales and $3 billion in membership income. Despite having to purchase an annual membership, warehouse club customers are able to enjoy a unique experience and shop for a large variety of goods at a single location and at much lower prices. So low, that the amount buyers save during a shopping trip can more than offset the membership fee. According to Consumer Reports, shoppers can save up to 55 percent at warehouse clubs.
Buyers may even save more on membership fees alone, not just on bulk purchases, when choosing Sam’s Club. In a comparison, reported by Forbes, a membership at Sam’s Club can be purchased for just $40, at Costco for $55, and at BJ’s for $50. Sam’s Club Plus is even offered to executive members at a low cost of $100 verses $110 at Costco, for similar benefits. More supporting comparison highlights between the top two (in price analysis, customer service, and more) indicate Sam’s Club as a customer-favored retailer, with the ability to grow and maintain a large target market for what it offers.
Anchoring and adjacent to 14,638 square feet of leasable space is the second largest player in this industry, Sam’s Club. The big-box warehouse club in Portage, Michigan has fostered amity among its anchoring businesses, while creating a destination that shoppers throughout the metropolitan area patronize. We believe the competitive advantage Sam’s Retail Development has over other shopping centers is Sam’s Club. The fanfare and momentum that Sam’s Club creates on the south end of the South Westnedge Avenue retail corridor helps drive customers to Sam’s Retail Development.
At a location like Sam’s Retail Development, your business can attract buyers filtering in and out of the Sam’s Club parking lot and into Sam’s Retail Development’s, approximately 7,500 customers per month. These buyers, with the intention to save more in the long run by spending more now, come to this location for that reason. A location with the opportunity to tap into this high-spending market is available for immediate lease next door at Sam’s Retail Development. For more information on this location, click here or call to speak with a leasing agent today.
Stiller, D. (2007, November). Proposal for Study for Woolbright Development.