Works Design takes a close look at the club store industry, and outlines various trends and best practices for packaging and design in the club store channel.

1. WINNING AT
CLUB

2. What is Club?

4. Sam’s Club has the 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 the largest 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 the lar 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’s stock so many SKU’s in a small space?
By merchandizing half pallets among other things. ?
Sam’s Club Costco BJ’s

8. The goal with the 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

11. RULE THE

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 You Care?

14. You Can’t
You Can’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

17. Designing For Club

18. Club Store packaging should be designed
like billboard advertising

19. Club packaging should visually communicate
within 5 seconds fr om 5 feet away

20. Different club retailers merchandize differently.
Costco merchandizes on 48” side of pallet , while BJ’s
& Sam’s merchandize on the 40” side of the pallet .

21. 48” 40”

22. 4Best
Practices

23. Color Blocking

27. Billboarding

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 a technique commonly used in gr ocery and
other channels

30. Billboarding is particularly relevant at club

32. Lead with Icons

33. If you have substantial 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 5 sides

38. When designing Club Store 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 .

39. 4Design
Trends

40. Simplicty

41. Value

42. Optimism

43. Experience

44. For more insight on club stor e design &
strategy, visit us online at worksdesigngroup.com,
or give us a ring at 856.665.4774