Warehouse clubs are popular shopping destinations for hundreds of millions of people around the world. The unbeatable low prices they offer draw customers from all demographics. And the subscription-based business model warehouse clubs follow helps those companies generate consistent profits, which is uncommon in the retailing industry.
This combination of popularity and sustainable earnings has attracted many investors to this retail industry niche as they look to earn market-thumping returns. But not all warehouse clubs are created equal, and there are some important factors to consider before buying your first warehouse club stock. Let’s take a comprehensive look at everything you need to know to invest in warehouse club stocks.
View photosA shopper browses through the warehouse aisles.More
Image source: Getty Images.
What is a warehouse club?