AAs a customer, warehouse clubs can intimidate you because of their size and selection. But as an investor, there are plenty of good reasons to consider investing not just in the stocks of warehouse clubs, but also in the real estate operations that house these businesses. Here’s why.

A definitive winner of the pandemic

Warehouse clubs have thrived during the pandemic for a number of reasons. First, because these were essential retailers, they weren’t forced to close early like so many non-essential businesses have.

Plus, their attractive prices and massive amenities made them a must-have for consumers who wanted to not only boost their incomes at a time when the economy was at its lowest, but also shop in a way that encouraged social distancing. social. Additionally, buying in bulk has allowed consumers to make fewer trips to stores, limiting their exposure to COVID-19.

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Now, warehouse clubs have a great opportunity to capitalize on this success as the pandemic continues to linger and waves (and variants) of COVID-19 linger. In fact, consumers who started shopping at warehouse clubs during the pandemic may expressly favor this option during times of higher case counts.

And that doesn’t just apply to COVID-19. Warehouse clubs could see increased business each year during flu season if consumers remain sensitive to health concerns. This alone makes it a viable business and a stable source of income for malls. But there are several other reasons why club warehouses continue to thrive.

A daily solution to supply chain problems

It’s no secret that supply chain lockdowns have caused an inventory crisis that has left consumers scrambling to get their hands on many staple items they rely on. And while some of those backlogs have eased since the end of 2021, they remain a problem.

Warehouse clubs help solve this problem by allowing consumers to bulk load the items they need. As such, there is a good chance that warehouse club memberships will increase in the near term as consumers continue to recognize the importance of stocking their homes with essentials.

Inflation Relief

Inflation has been rampant for months, so now more than ever it’s important for consumers to save money when buying essentials. Warehouse clubs are known for their competitive pricing, and that’s enough to make them a mainstay not just in the short term, but even once the cost of living drops.

Not much competition

While warehouse clubs naturally compete with each other as well as supermarkets and big box stores, they also tend to be quite spread out. This alone reduces the risk of store closures due to excessive competition.

Stable pillar tenants

Like malls, malls often rely on anchor tenants to attract customers and smaller tenants. And just as department stores typically fulfill this function for malls, warehouse clubs also fulfill this need for malls.

A solid investment

If you’re interested in investing in real estate, it’s worth looking at properties that house warehouse clubs. While it’s true that many people have joined a warehouse club just to get through the pandemic, the reality is that these stores lend themselves to some degree of addiction. Once you get used to buying your favorite household items in bulk at a discount, it’s hard to give up. And so there’s a good chance that warehouse club membership rates will remain strong and stable for many years to come, making these properties a very solid bet from a real estate perspective.

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