Consumption Trends and the Warehouse Club Retail Format

18 Pages Posted: 26 Jun 2018 Last revised: 12 Jul 2019

See all articles by Anthony J. Dukes

Anthony J. Dukes

University of Southern California - Marshall School of Business

Tansev Geylani

University of Pittsburgh - Katz Graduate School of Business

Kannan Srinivasan

Carnegie Mellon University - David A. Tepper School of Business

Date Written: May 14, 2019

Abstract

Is there is a connection between the emergence of the warehouse clubs and Americans’ unparalleled consumption levels? Since emerging in 1983, warehouse club growth has outpaced that of traditional grocery stores. Individual consumption in the US has grown concurrently. Using standard principles from microeconomics, we postulate that consumers’ increasing acquisitiveness is sufficient to explain (i) why warehouse clubs have grown at a faster rate than the traditional retailers; and (ii) how the emergence of the warehouse club may have accelerated the growth in personal consumption.

Keywords: Pricing, Retailing, Warehouse Clubs, Consumption Trends, Economics

JEL Classification: E21, L11, M31

Suggested Citation

Dukes, Anthony J. and Geylani, Tansev and Srinivasan, Kannan, Consumption Trends and the Warehouse Club Retail Format (May 14, 2019). Available at SSRN: https://ssrn.com/abstract=3194302 or http://dx.doi.org/10.2139/ssrn.3194302

Anthony J. Dukes (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States
213-740-3846 (Phone)

HOME PAGE: http://sites.usc.edu/anthonydukes/

Tansev Geylani

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States

Kannan Srinivasan

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

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