Abstract
The Warehouse Membership Club (WMC) industry in North America is now seventeen years old and has reached an annual sales level of approximately $34 billion. The WMC format is clearly the new price leader at the retail level. This paper addresses a number of key issues about WMCs. First, are WMCs retailers or wholesalers and who is at risk? Second, how have other retailers responded to the risk and what is the likely success of the response strategies? Third, to what extent does the evolution of WMCs support the three competing theories of institutional change: a) environmental; b) cyclical; and c) conflicrual and what can we learn from these theories? Finally, what is the prognosis for the future of the WMC format, both in North America and globally?
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