Abstract
PurposeSince emerging in 1983, warehouse club growth outpaced traditional grocery stores. Individual consumption in the U.S. grew concurrently. We investigate whether there is a connection between the emergence of the warehouse clubs and Americans' unparalleled consumption levels.FindingsUsing standard principles from microeconomics, we postulate that consumers' increasing acquisitiveness is sufficient to explain (a) why warehouse clubs have grown at a faster rate than the traditional retailers and (b) how the emergence of the warehouse club may have accelerated the growth in personal consumption.ConclusionWarehouse clubs may have contributed to the rapid growth of Americans' consumption rates.
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