Members pay an annual fee to shop in a large, no-frills warehouse that sells bulk sizes of groceries, electronics, and household goods at low prices. That format is a warehouse club. The membership fee and high volume allow thin margins.

Shopping is done from pallets and wide aisles; packaging is industrial. The treasure-hunt aspect of rotating specialty items adds excitement. Limited brand selection and bulk quantities suit families, small businesses, and bargain-focused shoppers.

Warehouse clubs generate profit from membership fees as well as product margins. The model has proven highly resilient and has expanded into services such as optical, travel, and fuel. For customers willing to buy in quantity, the savings are substantial.

• Membership-based bulk retailer in warehouse format
• Low prices supported by fees and high volume
• Limited assortment and large pack sizes
• Serves households and small businesses