Costco Warehouse Clubs

Costco Wholesale vs. Sam's Club vs. BJ's Wholesale

The main strategic issue that is faced by Costco (and by Sam's Club to a lesser extent) is the fact that it is having trouble competing with BJ's Wholesale on some key factors of customer service. Costco is a warehouse-style retailer, just like the other two companies. Typically, these companies offer lower prices, but consumers who shop there also need to buy their items in bulk (Thompson, et al., 2011). They get fewer perks, such as fixtures and decor, but that saves them money in the long run. It is a very "no frills" shopping experience which suits many people who prefer to buy their items in bulk and not have to shop as often as they otherwise would (Barrett, 2003; Thompson, et al., 2011). Mostly affluent and middle-class people shop at these kinds of stores, as well as...
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