LONDON (FNS) -- The warehouse club wars in Britain are heating up with the opening of the first Cargo Club in Croydon, England.
The 100,000-square-foot club just south of London is owned by Nurdin & Peacock, one of the United Kingdom's largest cash-and-carry operators, with sales of about $2.25 billion annually. It opened March 14.
Nurdin & Peacock is tilting Cargo Club more to the general consumer to prevent the club from eating into the customer base for its 46 cash-and-carries. As a result, Cargo Club carries a slightly higher proportion of food than its competitor, Costco. David Poole, managing director of Nurdin & Peacock, said the product mix is about 55% nonfood and 45% food. This compares with Costco's split of 60% and 40%. Cargo Club carries about 4,500 stockkeeping units and focuses on branded merchandise with cost savings of 10% to 60%. Membership costs 25 pounds ($37) a year and is open to both businesses and general consumers.
