THIS WEEK IN SUPERMARKET HISTORY 2002-05-27

Clubs Still Important While Packs Fade May 25, 1992

gan to adopt at least one key element of their success formula in 1992: institutional-size packs and multipacks. Retailers across the industry told SN that in order to compete with the value and convenience that club stores provided to consumers, they would have to start carrying club-style products. It was a tactic designed to help supermarkets offer consumers the same savings that lured them to the new club formats.

Retailers cautioned, however, that this tactic should be employed with care. Representation of club-pack products was important, they said, but specific products had to be chosen carefully. Paper products had emerged as an obvious pack category, and industry observers predicted a move into juice, coffee and other products. Attention centered around how to merchandise the products as well. Was a separate section warranted for the industrial-size packages?

Supermarkets improved their competitive skills. A decade later, clubs are no longer the attention-grabbing force they once were. But competition and unit expansion in this sector is still an important factor as Wal-Mart plans to open 50 to 55 club stores within the year.