US consumer confidence has plummeted to a nearly five-year low, largely due to the still-unknown, long-term ripple effects of tariffs. Because consumers are just starting to see how rising tariff rates will impact their wallets, they’re increasingly prioritizing value. Typically, the definition of “value” varies depending on the emotional, psychological, and economic state of each individual. But in the current economic climate, price is synonymous with the term, especially through a retail lens.
55% of consumers plan to prioritize products with the lowest price when shopping in the coming months.
As a result, consumers, even Gen Zers, are gravitating towards retail destinations that check the price box. But that doesn’t mean they’re not looking for something more. They’re also looking for retailers that deliver different types of value in their own distinct ways, whether that be digital integration, merchandise assortment, or adjacent service offerings.
Coupled this with the fact that younger consumers are moving to suburban, even rural areas at higher rates, and warehouse clubs are perfectly positioned to capitalize on tariff turmoil.
In 2024, Warehouse Clubs and Supercenters generated $769.9 billion in revenue with an annual growth rate of 5.5% over the preceding three years.
“Looking at the last two years, warehouse clubs stand out as a clear winner in overall retail,” said R.J. Hottovy, Head of Analytical Research at Placer.ai. “We see it in total visits. We see it in frequency, which is improving. We see it in gas station visits.”
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