Why are prices in stores like Costco and Sam’s Club much cheaper than your average grocery store?
In: 226
Lower overhead. Their stores are a basic warehouse meaning there aren’t any fancy signs or displays that cost money.
They can efficiently store and move inventory throughout the building.
Stocking shelves is as easy as moving a pallet. No need to depalletize inventory, open boxes and stack individual cans on the shelf. Just move the pallet into position, unwrap it and the shelf is stocked
Smaller variety. Rather than offering chicken nuggets from 10 different suppliers, they only offer one. This gives them the ability to negotiate the lowest price/best value.
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