What is a warehouse club format characterized by?

The warehouse club format is characterized by a limited and irregular assortment of items offered in large pack sizes. This model typically features bulk purchasing options that allow customers to buy items in large quantities, which can lead to significant savings on a per-unit basis. The limited variety means that while customers can expect to find a range of products, the selection within categories is often narrower, focusing on high-turnover items that appeal to a large customer base. This approach is designed to maximize efficiency and maintain low prices, making it attractive to consumers looking for value.

Larger pack sizes are a signature trait of warehouse clubs, as they cater to both families and businesses that require larger quantities to meet their consumption needs. This not only helps in reducing packaging costs but also aligns with the club's value proposition of bulk buying. The model contrasts with other retail formats that may focus on offering a wider selection of items, which are typically sold in smaller quantities.