Monday, April 30, 2007

Sam's vs Costco

Today, we talked about more and more people go to warehouse club chains, and those channels improve the sales of cK jeans. It seems that warehouse club chains help those brandings a lot to increase their sales.

However, there is an interesting thought from this article. Do warehouse club chains increase the sales of brandings, or brandings bring customers to their stores?

In this article, some customers said that the reason they shops at Costco is because they can buy high-end products in cheaper price. Warehouse club chains love to sell high-end products in cheaper price to attract more customers.

Therefore, my point is that not only warehouse club chains increase the sales of branding products, but those branding products also create profit and bring customers to warehouse club chains. That's why those results about the number of customers shop at warehouse club chains is more than before.

Hence, if those high-end products do not sell their products in warehouse club chains, will people still want to shop at warehouse club chains ? Will customers go back to departments to buy high-end products? I think it is interesting to think about it.

You can read the whole article from the link
http://www.wcpo.com/content/news

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