As brands and retailers adapt to serve ever-more fragmented shopper profiles and needs, distinct opportunities can begin to emerge. Business-owning shoppers have long been an underserved segment that makes do with the options available to them. Traditionally, many of these shoppers have shopped warehouse clubs to service diverse business needs such as food service, corporate offices, convenience store resale, and others. Clubs can be an oasis of solutions that business shoppers may not find elsewhere. Effectively addressing these shoppers’ business needs can serve not only to strengthen club loyalty, but to draw even more new business shoppers into the club.
To assist in this endeavor, we’ve put together our largest survey series yet that aims to understand the profile, attitudes, and behavior of club business shoppers. For the first time, we’ve provided a comparative analysis not only between the different clubs but also across different types of businesses.
In our 2019 survey series, we’ve included the following 6 different business types for analysis that comprise the whole of our club business shopper sample:
- Food Service/Restaurant
- Convenience Stores
- Corporate Offices
- Care Centers
- Religious Organizations
These types of businesses are especially relevant for Part 3 of our series. As a sneak peek, we’ve put together some highlights of the entire survey series.
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In our survey series, these insights are contextualized to help drive growth and to guide your journey into a new B2B future at club. Over the next two days, we’ll be launching all three of the reports. Click below to access the full executive summaries and results of all reports as they become available.
Below are some high-level takeaways from the series that apply broadly to most vendors.
Drive new white space opportunity with highly engaged business shoppers. These shoppers’ renewal rates and significant club spend hold opportunity for brands that meet their needs. Consider business shopper needs in your plans to grow sales.
Leverage your presence across the club and in services. Business shoppers frequently buy from multiple categories for multiple purposes (such as personal use) and use multiple services. Coordinate with complementary brands and vendors across the box to provide bundled solutions that excel at meeting specific but holistic needs better than your existing products can service.
Curate your assortment and maximize value. Optimize your offer constantly to match shoppers’ demands for relevance/value.
Tailor an online assortment and rewards strategy to business shoppers. Business shoppers not only buy significant volumes at club, but many also like to buy online. Build an online assortment strategy that takes advantage of the endless aisle to stock the pack sizes, resale packaging, and bulk value appeals ideal for business shoppers.
Provide business shoppers with consistent value and a reliable assortment. Club business shoppers want value and reliability over a treasure hunt experience. Improve the value on high-performing items rather than replace them outright. Negotiate longer planning cycles with your buyer for business items, allowing business shoppers to build regular routines around much-needed merchandise.
Coordinate internal retail accounts to prevent cannibalization. Club shoppers do not always see their club as the best destination for their business needs. Ensure that your Amazon and Costco accounts and your Sam’s Club and Walmart accounts are working in tandem to provide business shopper value, rather than only stealing share from each other.