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Consumption trends and the warehouse club retail format
Author(s) -
Dukes Anthony,
Geylani Tansev,
Srinivasan Kannan
Publication year - 2019
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3049
Subject(s) - warehouse , club , consumption (sociology) , business , marketing , economics , commerce , sociology , biology , social science , anatomy
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.