2017 Warehouse Club Industry Guide

BJs.com Costco.com

7 1 0 2 , 2 2 SamsClub.com y a M — te a D CostULess.come PriceSmart.com s a le e R

HHC Publishing, Inc.— Providing Club Industry Data, Information and Analysis since 1997 Online access and/or book delivery for the 2017 Warehouse Club Industry Guide Order Form will occur by May 22, 2017. These PRE PUBLICATION discounts expire May 15, 2017.

ONE Version Option TWO Version Option Save Purchase either Save Purchase both Save up $200 the print or $300 the print and online version online versions to $300 and pay $599, a $200 and pay $699, a $300 discount off the everyday discount off the everyday price of $799. price of $999.

ORDER

ONE Version Order—Check One TWO Version Order—Check Box $599 Book Online $699 Book and Online

DELIVERY AND PAYMENT

Name To get your 2017 Warehouse Club Industry Guide, simply Title/Position complete this form and return it to:

HHC Publishing, Inc. Company PO Box 9138 Foxboro, MA 02035-9138 Address 617-770-0102

City, State, Zip You can also fax the completed form to:

Telephone, Email 617-479-4961

Invoice Me Check Enclosed UNCONDITIONAL MONEY BACK GUARANTEE American Express MasterCard Visa

If you are not completely Credit Card Number satisfied with the 2017 Warehouse Club Industry Expiration Date & Guide, you are entitled to a full Signature refund. March 17, 2017 Volume 21, Issue 473

WAREHOUSE CLUB FOCUS  Costco February Sales—5.  Costco MVM Program—7. 1 For 21 years, your best source for information about the clubs.  Costco China—7.

Web Site Observations

For vendors looking for opportunities to expand their warehouse club business, BJs.com, Costco.com, PriceSmart.com and Samsclub.com offer a unique opportunity. For online only merchandise, all four club operators generally stock items that are not typically found in the club locations (BJs.com and Samsclub.com enable members to view items stocked in the club locations so they can order online for pickup). Online club buyers are very creative when it comes to the products they purchase.

Although BJ’s, PriceSmart and Sam’s Club do not publicly share web site sales data, Costco’s online success provides an indication of the overall opportunity. In its 2016 fiscal year, Costco generated online sales of approximately $3.9 billion, an increase of approximately 15% compared to its 2015 fiscal year. Costco’s online business represents approximately 23 club locations.

This article provides observations from the domestic web sites for BJs.com, Costco.com and Samsclub.com and the international web site for PriceSmart.com. The observations for this article were gathered in March, 2017 and focus on some of the unique merchandise stocked by each club.

Please note, the retail prices mentioned in this article include shipping and handling unless otherwise noted and do not include any discounts or instant savings. To view items at PriceSmart.com, one of the countries in which the company operates must be selected. For this article, Costa Rica was selected and the exchange rate at the time was 1 USD (US Dollar) for every 559 CRC (Costco Rica Colons). For each PriceSmart item mentioned in the article, the CRC and US Dollar (rounded to the nearest dollar) retail prices are provided. Additionally, items ordered at PriceSmart.com are delivered to a member’s local club where it can be picked up. PriceSmart does not deliver online orders to a residence or business.

Kitchen and Appliances – BJ’s assortment included: a Chef Buddy grill and panini press for $39.99, a NewAir 46-bottle capacity dual zone wine cooler with five wood drawers for $849.99, a NewAir 250-cigar capacity cigar cooler with a hygrometer (a humidity measurement tool) for $349.99 (plus shipping), a Nostalgia vintage old fashioned table top hot dog roller (see picture on the right) for $29.99 (plus shipping), a Chef Buddy 15-ounce self-stirring travel mug with an on/off switch and a leak proof cap for $10.99, a Chef Buddy three-cup capacity pancake batter dispenser for $14.99, a Penfield 56-inch long by 36-inch high black kitchen island BJ’s—Old Fashioned Hot Dog Roller with a natural wood top and three adjustable shelves, three drawers, a silver tray, a towel bar and two spice racks from Powell for $1,199.99 and a set of four Riedel chardonnay glasses for $74.99 (plus shipping).

Costco’s assortment included: a CRAFTEA tea and chai maker that can use loose tea, spices, fruits and flowers for $149.99, a Cuisinart two-quart ice cream, frozen yogurt and sorbet maker with a recipe book for $69.99, a Phillips pasta and noodle maker with eight noodle extruding attachments, a recipe book and will automatically mix, knead and extrude for $249.99, a WineStation four bottle wine pouring system that can preserve wine for 60 days, has a dual zone temperature, clean pour head technology and two argon gas bottles for $4,999.99 (see picture on the right), a Camp Chef National Parks cast iron cooking set with a 12-inch Dutch oven, a 12-inch skillet and an interchangeable lid for $59.99, a 16-piece Restaurant Essentials food storage container set with four 8- quart containers, four 6-quart containers and eight lids for $84.99 and a 144-piece stainless steel foodservice flatware set from Tramontina (36 each of knives, forks, spoons and teaspoons) for $44.99.

PriceSmart stocked: a Hamilton Beach espresso and cappuccino maker for $205.72 Costco—WineStation Pour System (CRC 114,995), a four-quart Hamilton Beach stand mixer with three attachments for $152.05 (CRC 84,995), a Kalorik seven-egg capacity stainless steel egg cooker (it can hard boil, poach and soft boil) for $48.29 (CRC 26,995), a set of twelve 4-ounce white salad bowls from Thunder Group for $62.60 (CRC 34,995), a five-quart Tramontina covered Dutch oven for $89.44 (CRC 49,995) and a Tramontina eight-piece cookware set for $196.77 (CRC 109,995). 2 March 17, 2017 FEATURE

Sam’s Club stocked: an Ariel soft serve ice cream, yogurt, gelato and custard machine with two 3.3-gallon hoppers, three pull-down dispensers (one of which combines the two flavors in a twist), a production time of 15 minutes and can serve up to 92.6-pounds of product per hour for $15,842.00 (plus shipping), an Ariel counter top three flavor slush machine (see picture on the right) for $2,394.00 (plus shipping), a Gold Medal caramel apple dip warmer with two hoppers for $460.00 (plus shipping) and a Paragon 11-quart stainless steel kettle- shaped soup warmer for $125.00.

Greenmade – InstaCrate – Greenmade is the manufacturing division of U.S. Merchants, a contract packager and inventor of innovative wholesale club packaging solutions. One of its items is the 12-gallon InstaCrate collapsible storage bin that typically retails at Costco’s club locations for $7.99. The product folds and ships flat (maximizing the number of items on the pallet and reducing the shipping cost per SKU) but can be easily converted into a box. From a club buyer perspective, the item appeals to both business and consumer members given its wide range of storage features. For example, for businesses, the item includes molded rails to support hanging file folders. Sam’s—Ariel Slush Machine

While many of the items listed on club web sites are not stocked in the club locations, some club location items are stocked online. However, to differentiate that club location SKU, a club online buyer will sell a multi- pack of a club location SKU on its web site. Costco.com stocked a package of three 12-gallon InstaCrate collapsible storage bins for $29.99 (see picture on the left).

One of the strategies the club’s use to make it easier to purchase merchandise online is to include shipping and handling costs in the retail Costco.com—InstaCrate Collapsible Storage Bin price when possible and, as mentioned on page one, many of the items observed on each club’s web site do in fact include shipping and handling (the phrase “shipping and handling included” appears to the left of the retail price in the picture above). By include shipping and handling, club members can more easily compare online prices between club and non-club web sites. Making sure the shipping and handling costs are also a value is another way the club online buyer can reinforce the value a member receives by shopping at a club online. For this particular item, the $2 shipping and handling cost per crate is well below the delivery cost found on other online web sites.

Getting a product listed/displayed in multiple online categories is another strategy that a vendor and/or club buyer can use to increase sales. The InstaCrate SKU was listed within three categories on Costco.com: storage and organization within home improvement, interior accessories within auto and truck accessories and cargo storage and racks within auto and truck accessories.

Dry Grocery and Candy – BJ’s dry grocery selection included: a case of ten 18-count boxes of Newman’s Own organic special blend coffee KCups for $89.99 and a case of ten 16-count boxes of Swiss Miss hot chocolate KCups for $89.99. Costco’s dry grocery and candy selection included: a case of twelve 7-ounce bags of Godiva milk chocolate caramel truffles for $119.99, a case of thirty-six 6-ounce cans of Kirkland Signature private label sockeye salmon for $139.99, a case of six 48-ounce bags of Namaste gluten free organic flour for $69.99 and a 40-pound bag of Royal Chef’s basmati rice for $54.99.

Sam’s dry grocery assortment included: a case of six 32-ounce bags of Dorsel’s white self -rising corn meal for $21.98, a case of six 64-ounce packages of Gold Medal grape slush mix for $38.68, a case of six 128-ounce cans of Midway’s Finest caramel apple dip for $99.98 (plus shipping), a pallet of eighty 25-pound bags of Prairie Mills all purpose flour for $1,470.00 and a case of two-hundred 4-gram lemon juice packets from Real Lemon for $4.38 (plus shipping).

Hardware and Tools – BJ’s hardware selection included: a Pulsar diesel portable gas 7,000-peak watt generator for $1,499.99 and a Stanley 134-piece hand tool set and case for $29.99. Costco’s hardware assortment included: a Dirty Hand Tools 28-ton log splitter with a 9.5-horsepower engine, a log catcher and cover for $1,499.99, a set of three First Alert carbon monoxide alarms with three 9-volt batteries for $49.99 and a package of two 14-ounce First Alert Tundra-brand fire extinguisher spray cans with material that is non- toxic and biodegradable (see picture on the right) for $16.99 (plus shipping). Costco—Tundra Fire Extinguisher 3 March 17, 2017 FEATURE

PriceSmart stocked: a Kushlan 300-pound capacity cement mixer with three steel blades and a 3/4-horsepower electric motor (see picture on the right) for $747.75 (CRC 417,995), a ShopVac 2,000- cfm air circulator with a cord wrap for $304.11 (CRC 169,995) and a Lifan 20,000-watt LPG/NG liquid cooled standby generator for $7,334.52 (CRC 4,099,995). Sam’s Club stocked: a Mold Detective five-room mold test kit with a free analysis (a $35 value), a sampling pump, air sample cassettes, surface samples and a mailing envelope for $79.88, a Pro-Series welded steel drywall and panel hoist for $240.92, a Swisher 7-foot by 12-foot emergency safety shelter designed to be installed inside that can fit 25 people and withstand tornado force winds for $7,299.00 (see picture on the left) and a ZillaReel 50-foot retractable cord reel with a grounded triple tap plug for $89.98. PriceSmart—Kushlan Cement Mixer Health and Beauty Aids – BJ’s stocked a case of four 1-gallon bottles of Dial antimicrobial liquid gold soap for $70.69. Costco stocked a Health-O-Meter wireless scale and activity tracker watch set for $79.99. Sam’s Club stocked: a case of seventy-two 3.1-ounce bars of Ivory white bath soap for $45.68, a case of forty-eight 4-ounce bars of Lava unscented hand soap for $62.88 and a Mega Motion Rascal-8 brand four-wheel scooter with a maximum speed of four miles per hour and a 250-pound weight limit for $679.00.

Office Equipment and Supplies – BJ’s stocked: a 50-count case of Fellowes clear Sam’s—Emergency Shelter plastic shredder bags with ties for $44.99, a 26-sheet capacity strip cut office shredder from GoECOlife for $829.99, a 4.2-cubic foot fire resistant safe from Mesa Safe with two combination dial locks that can withstand efforts to break in using a sledgehammer, a drill and carbide cutters for $2,499.99, a uAttend electronic time clock with an LCD display and the capability to support an unlimited number of employees, various pay periods and can export data to payroll systems for $124.99, a 25-count case of uAttend RFID proximity fobs that automatically sign an employee in/out when waved in front of the uAttend electronic time clock for $64.99 and an XLBLUE telephone system with eight IP phones, a wireless adapter for wireless phone connections, an automated attendant, voice mail and call forwarding for $1,499.99.

Costco stocked: a four-drawer 64-inch wide by 37-inch high insulated file cabinet that is fire resistant for up to one hour from FireKing for $3,129.99, a pallet of 18 Lifetime 8-foot plastic folding tables for $2,599.99, a set of 32 Lifetime plastic folding chairs and a storage cart for $999.99, a pallet of 16 Pro-Line adjustable ergonomic office chairs for $2,599.99, a pallet of eighty 2,500-count boxes of Boise 8.5-inch by 11-inch 92-bright multi-purpose paper for $1,689.99, a set of 50 Command general purpose plastic hooks each with a three-pound holding capacity for $38.99, an 800- piece classroom crayon set from Crayola with sixteen different colors (50 of each color) for $49.79 and a 256-piece classroom washable marker set from Crayola with sixteen different colors (16 of each color) for $67.99 (see picture on the right). Costco—Crayola Washable Markers

Subscription and Copyright Warehouse Club Focus (ISSN: 1533-6816) is published twice a month by HHC Publishing, Inc. The annual subscription rate for twenty-four issues is $479 (payable in U.S. currency) and delivery is via email. HHC Publishing, Inc. accepts Visa, MasterCard and American Express credit card payments. Subscription requests should be sent to HHC Publishing, PO Box 9138, Foxboro, MA, 02035-9138. You may also email ([email protected]), call (617-770-0102) or fax (617-479-4961) your subscription request. Important Notice from HHC Publishing, Inc. The information in Warehouse Club Focus is based on sources believed to be reliable and, while extensive efforts are made to assure its accuracy, no guaranteeAll contents can be© made. 2017, The HHC opinions Publishing, expressed Inc.are merely All ritheghts opinions reserved. of Warehouse HHC Club Publishing, Focus and Inc.those strictly opinions PROHIBITSdo not necessarily without reflect theits opinionsexpress of written the companies permission covered ALL by the copying, publication. faxing Warehouse and emailing Club Focus of is Warehouse not endorsed Clubby the Focuscompanies (WCF) cove redto inpersons the publication or companies nor is any product endorsement implied. who have not paid the annual subscription fee. WCF reserves the right to TERMINATE any subscription to those HHCindividuals Publishing, or Inc.companies strictly PROHIBITS distributing without WCF its express to non-subscribing written permission individuals ALL copying, or faxing companies. and emailing In ofthis Warehouse regard, ClubHHC Focus Publishing, (WCF) to persons or companies who have not paid the annual subscription fee. WCF reserves the right to TERMINATE any subscription to those individuals or companiesInc. may usedistributing software, WCF Internetto non-subscribing tools and individuals other ava or companiilable meanses. In thisto trackregard, and HHC monitor Publishing, subscribers’ Inc. may use use software, of WCF Internet. tools and other available means to track and monitor subscribers’ use of WCF. If you have received this issue of WCF without paying the annual subscription fee, the distributor is in violation of If you have received this issue of WCF without paying the annual subscription fee, the distributor is in violation of copyright and intellectual property laws.copyright To sign and up forintellectual an annual subscription, property calllaws. us at 617-7To sign70-0102 up or for visit an www.hhcpublishing.com. annual subscription, If your call company us at is 617-770-0102interested in learning or aboutvisit howwww.hhcpublishing.com. to provide the information found If your in WCF company throughout is your interested organization in calllearning us at 617-770-0102 about how and to askprovide about ourthe corporate information subscription found program. in WCF

Sam’s Club stocked: a Lifetime classroom chair and Sales Executive—Costco Midwest, East Coast table set with sixteen plastic stacking chairs and Xperience Marketing, Inc. four 29-inch plastic tables for $549.00, a Quartet 8- We are a Club Broker seeking a creative and enthusiastic sales executive to be responsible foot wide by 4-foot high porcelain black chalkboard for our Costco Midwest and East Coast customers. The position calls for an associate that is with an aluminum frame for $369.00, a case of able to manage multiple product lines with our represented principals; all of whom are proven, agile, fast-moving, long-t erm suppliers with existing business. We offer a base salary plus a twelve 8-ounce packages of Crayola white “sky’s the limit” compensation plan, coupled with a close family-style company culture, modeling compound for $52.98 and a case of sixty entrepreneurial spirit, with an incredible support staff in place. 7-gram washable all purpose clear glue sticks from

Position preferably working in-home in Sterling, VA, Duluth, GA, or Chicago, IL. Elmer’s for $29.68.

Candidate Skills, Qualifications, and Areas of Responsibility would include: Computer Supplies and Printers – Costco

 Travel and call on the Costco Northeast, Southeast, Midwest, and Texas buying offices. stocked an ioSafe six-terabyte fire and waterproof  Product lines are in departments 12, 13, 17, 18 and 19 (and more in the future). external hard drive for $499.99. Sam’s Club  Existing buyer relationship in those departments is critical.  Conduct and manage sales presentations to multiple buyers in multiple departments. stocked: a MakerBot desktop 3D printer for  Experience with product development specific to membership warehouse clubs. $2,326.00 and a 7.76-ounce roll of MakerBot green  Designing, developing, and implementing new programs and items in line with trends and 3D printer filament for $19.98. consumer patterns, for specific regional needs.  Firm understanding of club business and logistics.  Excellent computer skills including Excel, PowerPoint, and Outlook. Electronics – BJ’s electronic assortment included:  Ability to report and analyze numbers, create projections. a refurbished eight-inch 16-gigabyte Android-based  Outstanding communication skills both verbal and written.  Existing business in-place ready to take over and grow! tablet from Samsung for $179.99, a refurbished 65- Please send resume, references (two Buyer as well as two Manufacturer/Broker inch ultra high definition smart LED television with relationships) and description of how this position is right for you. 4K resolution from Samsung for $1,979.99 and a

Please send to [email protected] refurbished 39-inch smart LED television with 720p resolution from Vizio for $239.99. Costco stocked an Artesia Bluetooth-enabled digital grand piano with a bench, songbook and cabinet for $2,399.99. PriceSmart stocked a Crosley desktop jukebox with a CD player, LED lighting, an AM/FM radio and a cherry finish (see picture on the right) for $196.77 (CRC 109,995).

Perishable Food – BJ’s perishable selection included: a package of six 18-ounce de- boned rib steaks from Bubba’s-Q for $149.99, a 15 to 16-pound bone-in prosciutto with a wood morsa holder and knife from Daniele for $309.99, a 4.4-pound package of grilled Italian artichoke hearts from Fondo di Toscana for $59.99, a 4.4-pound package of Italian long stem artichokes from Fondo di Toscana for $59.99 and an eight-pound package of fresh king crab legs from Rastelli Market for $229.99.

Costco’s perishable assortment included: a package of 12 gourmet kids snack packs from Daniele (four salami and cheddar, four pepperoni, provolone and cranberry and four salami, provolone and mega munch) for $59.99, a 2.7-pound package of organic PriceSmart—Crosley Desktop Jukebox assorted mushrooms (brown shimeji, white shimeji, maitake and king trumpet) from Sid Wainer & Son for $59.99 and an 11-pound case of backyard beauty tomatoes from Sid Wainer & Son for $52.99.

Sam’s perishable selection included: a case of four 16-ounce packages of Batterlicious edible peanut butter cup cookie dough for $29.88, a 10 to 11-pound 100% Iberico acorn fed 48-month aged boneless Spanish ham from Fermin for $799.00, a case of ninety-six 1.45-ounce plastic cups of double chocolate mousse from Galaxy Desserts for $99.98, a case of eight 16-ounce containers of Haagen- Dazs chocolate ice cream for $59.88, a case of ten 42-count boxes of Marche de Paris French macaroons (60 each of vanilla, pistachio, strawberry, white chocolate, crème brûleè, milk chocolate and lemon) for $198.68 (see picture on the left), a ginger cranberry sauce kit that the member prepares at home (the package includes 16-ounces of cranberries, eight-ounces of honey, 32-ounces of orange juice and six-ounces of ginger) from Sid Wainer & Son for $27.88, a case of 96 Sam’s—French Macaroons New England crab cakes from Sid Wainer & Son/Domaine de Provence for $149.98, a case of 60 mini reuben sliders from Sid Wainer & Son/Domaine de Provence for $84.47 and a 20-pound case of colossal U15 shell-on uncooked shrimp from Tampa Bay Fisheries for $362.76.

Automotive – Costco stocked: a AirBedz truck bed air mattress with a built-in pump, carry bag and patch kit for $199.99 and a DK2 utility trailer that is 4.5-feet wide by 7-feet long with a 1,500-pound load capacity and front and back drop gates for $999.99. Sam’s Club stocked: a case of twelve 32-ounce bottles of Penzoil SW30 motor oil for $40.98 and a case of nine 16-ounce bottles of VP Racing madditive fuel system cleaner for $107.55. 5 March 17, 2017 FEATURE

Detergents and Cleaning – BJ’s stocked a case of twelve 35-count bottles of Clorox disinfecting wipes for $44.89. Costco stocked: a case of twelve 24-ounce bottles of Clorox toilet bowl cleaner with bleach for $29.69 (see picture on the left), a case of twelve 19-ounce bottles of Lysol disinfectant spray for $78.99, a yellow janitor mop bucket/wringer and two yellow caution signs from Restaurant Essentials for $79.99 and a Sienna window steam cleaning system with a ten- piece accessory kit for $79.99. Sam’s Club stocked: a case of one-hundred 2- count vending boxes of Snuggle blue sparkle fabric softener sheets for $36.96 and a case of one-hundred one-load vending bottles of Wisk liquid detergent for $54.84.

BJ’s—Clorox Toilet Bowl Cleaner Paper and Plastic – BJ’s stocked: a case of 1,000 Dixie 12-ounce hot cups with the coffee dream logo for $127.49, a 500-count case of Dixie 8.5-inch ultra heavyweight paper plates for $69.99, a case of sixty 505-sheet rolls of two-ply Kleenex Cottonelle bathroom tissue for $72.49, a case of 1,000 black heavyweight plastic knives from Dixie for $31.99 and a case of forty-eight 125-count boxes of Kleenex facial tissue in a pop-up dispenser for $97.49.

Costco stocked: a case of thirty 44-count rolls of Bounty one-ply basic paper towels for $29.99 and a case of thirty-six 750-sheet rolls of Georgia-Pacific Angel Soft coreless two-ply bathroom tissue for $65.99. Sam’s Club stocked: a case of twelve 10-inch by 10-inch cupcake boxes with a window from Boxit for $11.98, a case of 1,000 Get Reddi 10-pound capacity ice bags with twist ties for $89.98, a case of twelve 500-count pop-up boxes of Marcal 12-inch by 10.75-inch deli paper for $79.96, a 100-count case of Member’s Mark private label half size steam table pans for $17.88 and a case of twenty-four Boxit cupcake box inserts (each insert holds 12 cupcakes) that fit a 14-inch by 10-inch cupcake box for $10.98 (see picture on the left).

Sports and Camping – BJ’s stocked: a Body Solid ab wheel for $23.99, a 5.2-gallon portable camping toilet from Century for $87.99, a 14-inch neon New York Rangers wall clock for $94.99 and a Powerline leg extension and curl machine for $269.99. Sam’s Club stocked a case of thirty-six 20-ounce cans of Sport Supply athletic field marking paint for $118.32. Sam’s—Cupcake Insert Seasonal – PriceSmart stocked: a Dream Maker six person hot tub with a cover for $3,577.81 (CRC 1,999,995), a Lifetime 15-foot by 8-foot outdoor garden storage shed with skylights and screened vents for $2,558.13 (CRC 1,429,995), a Rite Lite 6.5-inch tree of life silver Kiddush cup for $78.70 (CRC 43,995), a Rite Lite traditional antique bronze large menorah for $61.81 (CRC 33,995) and a Swim’n Play 15-foot round above ground pool with a steel ladder, resin steps and a filtering system for $536.66 (CRC 299,995). FINANCIAL Costco Wholesale

Costco Reports February, 2017 Sales Globe Newswire – March 2, 2017

Costco reported February, 2017 worldwide sales increased 7.7% from $8.28 billion last year to $8.92 billion this year. It is estimated that national sales increased 8.2% to $6.50 billion and international sales increased 6.5% to $2.42 billion.

Costco reported that overall comparable sales increased 4% with United States locations increasing 5%, Canadian locations increasing 10% and other international locations decreasing 2%. Excluding gasoline and foreign currency exchange (gas/fx), overall comparable sales increased 2% with United States locations increasing 2%, Canadian locations increasing 2% and other international locations decreasing 1%. Member traffic increased 2% with the company’s average transaction increasing 2% including gas/fx and “flat” compared to last year excluding gas/fx. Cannibalization from new Costco locations in existing markets negatively affected overall comparable sales by 90 basis points.

In terms of department sales, food, sundries and hardlines increased in the low single digits, softlines increased in the mid single digits and fresh foods decreased slightly. Regionally and internationally, the Midwest, Texas, San Diego, San Francisco, the United Kingdom, Mexico and Canada produced the strongest results. NATIONAL ACCOUNT MANAGER ‐ COSTCO

COMPANY OVERVIEW

BIC® products are known and appreciated all over the world for their quality, their affordability and ease of use. The ballpoint pen, the pocket lighter, the one-piece shaver are all part of the daily lives of millions of consumers. These products make BIC® one of the best known international brands, present in 3.2 million retail outlets, in more than 160 countries. As we explore the tremendous opportunities ahead, we have a need for dedicated and dynamic employees to help build our team.

JOB DESCRIPTION:

• Meets or exceeds assigned sales forecast objective • Achieves distribution, pricing, promotion and shelving objectives within our stationery segments • Manages BDF/MDF to meet or exceed sales forecast achievement, while staying within budget and policy guidelines • Forecasts sales volume in collaborative • Manages expenses within company policy guidelines • Develops expertise of:  Customer business environment and needs  Respective category and market  Competitive strategy  BIC internal operating policy and procedures • Develops long term relationships with customer’s key personnel. • Communicates information and customer needs across the BIC organization. Leads, organizes and facilitates both internal and external teams to meet customer’s needs.

BIC Corporation is an Equal Opportunity/Affirmative Action employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability, or protected Veteran status.

• Develops customer business plans that take into account long-term goals, strategies and results. Takes into account the profit and volume implications of various alternatives to both BIC and our customer. • Develops conceptual presentations drawing from all internal and external resources needed. • Negotiates business plans at customer business planning sessions that achieve business unit’s short and long-term volume and profit goals while conforming to BIC policies. These plans should ensure customer performance at or above standards in all key merchandising areas: Distribution, Pricing, Shelf and Promotion.  Work closely with the Supply-Demand Planning Team at BIC/Customer to ensure correct forecast is implemented and executed.

QUALIFICATIONS:  3-5 years’ selling experience of increasing levels of sales and supervisory responsibility in the consumer products industry, plus a Bachelor’s degree in business or related field of study.  A high in-depth knowledge of consumer products industry, with an emphasis on stationery, to execute direct sales, order management and logistics and retail sales coverage. Ideally, this same high in-depth knowledge and experience of internal functions (i.e., Sales Resources, Business Planning, Marketing and Customer Service).  This position requires a winning positive attitude from a competent and competitive individual who can work and lead teams of people.  The position requires you to work in our office in the Bentonville, AR. Have the ability to manage a challenging and demanding work load and travel 50% of the time.

BIC offers a competitive salary, health insurance and 401(k). Successful candidates are required to pass a drug test and undergo a security check.

To apply and be considered for this position, please visit our careers site at www.biccareers.com and reference Job Code Number 16-66.

6 March 17, 2017 FINANCIAL

Costco Reports Second Quarter Sales and Operating Results Globe Newswire – March 2, 2017

Costco reported financial results for its second quarter ending February 12, 2017 via a press release and conference call with financial analysts. The following is a summary of that information:

Sales and Earnings – Costco reported second quarter merchandise sales increased 5.7% from $27.57 billion last year to $29.13 billion this year. Membership revenues increased 5.5% to $636 million and overall revenues increased 5.7% to $29.77 billion. Operating income decreased 1.4% to $844 million and net income decreased 5.7% to $809 million. The lower earnings results was due in part to weaker gasoline profits (lower by $42 million compared to last year) and information technology expenses (higher by $26 million compared to last year).

Comparable Sales – Costco reported overall comparable sales increased 3% with United States locations increasing 3%, Canadian locations increasing 8% and other international locations decreasing 2%. Excluding gasoline and foreign currency exchange (gas/fx), overall comparable sales would have increased 3% with United States locations increasing 3%, Canadian locations increasing 2% and other international locations increasing 3%. Average member traffic increased 1% and the average transaction increased 2% compared to last year whether gas/fx was included or excluded.

In terms of sales by department, food and sundries were “flat” compared to last year (alcohol and food were the strongest categories), hardlines increased in the low to mid single digits (tires, hardware and seasonal were the strongest categories), softlines increased in the low to mid single digits (apparel and home furnishings were the strongest categories) and fresh foods increased in the low to mid single digits. Regional and international sales were strongest in the Midwest, Texas, the Northwest, California, Mexico, the United Kingdom and Korea.

Merchandise Gross Margins – Second quarter merchandise gross margins decreased 24 basis points from 11.24% last year to 11.00% this year. Merchandise gross margins in food, sundries, hardlines, softlines and fresh foods increased seven basis points compared to last year. 7 March 17, 2017 FINANCIAL

Expansion – Costco opened a total of nine locations including one relocation in its first quarter and four locations in its second quarter. The second quarter openings included its 13th location in Korea, its 13th location in Taiwan and two locations in Florida. The company plans to open an additional 17 locations in its third and fourth quarters including its first clubs in Iceland and France.

MVM Coupon Program – Costco is changing its multi vendor mailer (MVM) coupon program. The program began in 1995 with one six-week coupon booklet. Since that time, Costco increased its booklet activity to one per month. However, it is scaling back its MVM coupon activity with the ultimate goal of redirecting some of those funds to every day low prices. While Costco has reduced the number of booklets per year, reduced the “run time” of each booklet and reduced the number of items per booklet, it will increase the coupon amount for participating items.

The net effect in the second quarter is that, compared to last year, Costco had 17 fewer days with a “live” MVM booklet and 71 fewer items. However, the company experience higher overall second quarter MVM sales compared to last year.

Membership – Costco’s membership renewal rates remained consistent and strong at 90.2% in the United States and Canada (94.3% for businesses and 89.5% for consumers) and 87.7% worldwide.

At the end of its second quarter, Costco had 37.5 million gold star members (up from 37.1 million at the end of its first quarter and 36.8 million at the end of its 2016 fiscal year), 7.4 million paid business members (up from 7.3 million at the end of its first quarter and 7.2 million at the end of its 2016 fiscal year), 3.4 million paid business add on members (down from 3.5 million at the end of its first quarter and 2016 fiscal year), 39.7 million free spouse cardholders (up from 39.4 million at the end of its first quarter and 39.1 million at the end of its 2016 fiscal year) for a total of 88.1 million cardholders worldwide (compared to 87.3 million at the end of its first quarter and 86.7 million at the end of its 2016 fiscal year).

The decrease in paid business add on members is due to those people converting to their own personal executive membership. At the end of its second quarter, Costco had 17.9 million executive members (up from 17.4 million at the end of its first quarter).

Membership Fees – For United States and Canadian members, consumer or group membership fees will increase $5 from $55 per year (since November, 2011) to $60 per year (effective June 1, 2017). Executive membership fees will increase $10 from $110 per year (since November, 2011) to $120 per year (effective June 1, 2017). The 2% reward limit for executive members will increase from $750 per year to $1,000 per year. United States and Canadian membership fees represent approximately 87% to 88% of the company’s overall membership revenues.

Inventory and Accounts Payable – The average inventory per location increased from $12.8 million per location last year to $13.1 million per club this year. The company’s merchandise to accounts payable ratio was 82% compared to 83% in the fourth quarter last year.

Online – Second quarter sales for Costco’s online business, which operates in the United States, Canada, the United Kingdom, Taiwan, Korea and Mexico, increased 12%. On a comparable basis, online sales increased 11%.

Costco has a number of initiatives to improves its online business. For merchandise, Costco is adding more high end items on an everyday basis and improving inventory levels on higher velocity items. For functionality, Costco is improving its search feature, reducing the number of checkout clicks to two, automating its return process and enabling members to more easily track orders. For distribution, Costco has increased the number of online depots to 11 to increase delivery speed and reduce delivery expenses.

In terms of third party home and office delivery partnerships, Google Express utilizes 15 Costco locations delivering merchandise in five cities and Instacart utilizes 132 Costco locations delivery merchandise in 26 cities. Costco is currently working with Google Express to delivery merchandise in one to three days throughout the continental United States and is close to testing home and office delivery partnerships with two other companies.

China – Richard Galanti, Costco’s executive vice president and chief financial officer, commented on a question about Costco potentially opening locations in China. Costco currently sells some items online through Tmall.com. Galanti said, “In terms of us opening a location over there, you should expect something in the next couple years.” 2017 Order Form Warehouse Club Focus 2016 White Papers

Single Subscription—$479 (choose delivery method below) Each White Paper costs $149 and is delivered via Email in PDF format

Email (PDF format) Mail Email, Mail What is a Warehouse Club? Product Development

Corporate/License Subscription—Call for program details/setup Retail and Club Sales Data Product Demonstrations

3 Subscribers—$1,200 6 Subscribers—$2,100 Club Member Profile, Analysis Pac kaging Private Label Club Industry Survey 10 Subscribers—$3,000 20 Subscribers—$5,000 Department Analysis Costco Buying, Operating 100 Subscribers, Company Intranet Posting—$10,000 PriceSmart Buying, Operating Sam’s Buying, Operating Understanding Club Buyers BJ’s Buying, Operating Warehouse Club Industry Guide

2016 (one version—print or online)—$799 (check one) WCIC Access to any single module costs $279 annually. 2016 (two versions—print & online)—$999 (check both) Reconnaissance Image Hub The 2016 Guide is the most comprehensive account planning tool available for the club channel. Industry Snapshot Program Development

Print Online Analytics Buyer Strategies

PLEASE PRINT ALL INFORMATION

Name Mail/fax your order to:

Title/Position HHC Publishing, Inc. PO Box 9138 Company Foxboro, MA 02035-9138 Fax: 617-479-4961 Address If you have questions, City, State, Zip please call us at:

Email Phone: 617-770-0102 Telephone UNCONDITIONAL

Invoice Me Check Enclosed MONEY BACK

American Express MasterCard Visa GUARANTEE

If you are not completely Credit Card Number satisfied with any HHC Expiration Date & Publishing product, Signature return it for a full refund.