Shopping in a traditional retail store, Loblaws, versus a box store, Costco/Club Price

Essay by roger999University, Bachelor'sA-, March 2004

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Costco vs. Loblaws

In this paper, I shall be providing my personal observations between shopping in a traditional retail store, Loblaws, versus that of a box store, Costco/Club Price. During the last ten years, the overall nature of retailing has changed significantly. There are now an increased number of mass merchandisers such as Costco, who are changing the outlook of retailing at the expense of traditional grocery stores such as Loblaws. There are a number of reasons why a consumer would choose a specific retail store over the wide selection of competitors out there on the market, those being; inventory, selection, variety, quality, pricing strategy, in store merchandising, promotions, advertisements, personal selling, customer services, credit and additional services. Since the market is fierce, it is important for the retail stores to fully understand what are the specific needs of their customers. Due to the fact that there is a retail industry increase of large discount/box stores, indicates that the needs and values of consumers are changing.

If I examine the structure of the mass merchandiser Costco/Club Price, it is easy to state that their setup is targeted at for personal, family, household, and small business use. Essentially, their structure is similar to that of a warehouse outlet because of its cash and carry policy, discount prices and size. They are also able to carry brand name products at discount prices because of their large buying power, which allows them to purchase high volumes. They also are unique in the fact that their manufacturers provide their products on pallets therefore cutting down on shelving and restocking time for their employees. The service people from the manufacturing companies also go from store to store and service them as well as delivering their products directly to each outlet. Costco combines both...