What it means. If upon leaving a BJ's Wholesale Club, Costco, or Sam's Club your shopping cart overflows with way more items than you ever intended to pick up and you're left wondering how you ended up with enough cheese sticks to feed every elementary-school kid in town and so many Post-its you could paper Hoover Dam, you're experiencing a big-box binge.
While the New England Journal of Medicine has not yet documented this condition—in which a shopping-induced euphoria is wiped away by the reality of yard-long receipt handed over at checkout and a hefty addition to the credit-card balance—anecdotal evidence suggests it is widespread. A colleague of mine recently went to Costco needing to stock up on paper goods and headed home with those items plus a 10-pound bag of organic carrots, a two-pound block of Vermont cheddar, a case of organic chocolate milk, and a tons of other stuff that somehow ended up in the back of his minivan.
Why the buzz? Much of the U.S. economy has slowed to a crawl during the recession. But, like repo men and foreclosure auctioneers, big-box stores are busy. For February, Walmart recently reported a 5.1 percent year-over-year increase in same-store sales, exceeding Wall Street's expectations. BJ's same-store sales were up 8.2 percent, and Costco posted a 5 percent gain (not including fuel). American consumers have cut back on discretionary spending but are still streaming into wholesale clubs and often walk out with more than they planned to buy. (Big-box bingeing knows no borders. The image shows the opening of a Costco in Japan.)
"Club stores are doing pretty well in this down economy because they focus on value," says Consumer Reports' shopping guru Tod Marks, whom you might know as Tightwad Tod. Big-box bingeing occurs because, says Marks, these retailers "make it too easy to run up your bill with deep discounts on everything—books, video games, garden supplies, gourmet coffee, small appliances . . . you name it." Indeed, an informal poll of club shoppers who visited ConsumerReports.org suggests that as many as half spent more than they intended on their last trip.
To avoid big-box binges, keep this "CHECK" list in mind:
Carry cash. It's easy to overspend when you pay with a credit card. But using cash can help you avoid needless purchases.
Have a list. We're now in the era of spartaneity, not spontaneity. A shopping list might keep random items from fattening your bill. Consider adding prescription meds to your list. "We've done numerous price studies that show warehouse clubs, in particular Costco, to be one of the cheapest sources of medicine," says Marks.
Enlist friends and family. Splitting large purchases with others lets you take advantage of bargains without overloading on bulk buys. This is especially true for perishable items. "No matter how low the price is on that monster box of fresh apples or peaches, it's not a good deal if you can't use them up before they spoil," says Marks.
Comparison-shop. Warehouse clubs don't always have the lowest prices on food. That's because supermarkets sell some items at or below cost to lure you into the store, hoping you'll purchase other marked-up items once you're inside. Clubs don't play that game, so their everyday low prices can't always compete with the prices on loss leaders in supermarket promos.
Know how to spot a true bargain. At Costo, a .97 at the end of a price generally indicates discontinued or slow-moving products. At Sam's, a C at the end of a price number denotes canceled, heavily reduced items.—Daniel DiClerico
As an economist I take issue with the comment that it is not worthwhile buying in bulk if you end up having to throw some out. As long as the price is right it may still make sense to buy and throw out the excess. My local Costco sells a wheel of Brie for the same price as Giant charges for a quarter. Even if I end up throwing away half the wheel I am ahead of the game.
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Alessandra
Just a few quick thoughts. While this is the first time I have written a blog, it is not the first I have read. I must begin with my agreement that it is well done. As for the comments on warehouse stores I agree completly. The problem is not limited though to warehouse stores, but such as thier merchandice is magnyfied. I agree with the idea of using a list while shopping to avoide impulse buys. Wharehouse stores this is even more true due to thier use of similar tactects average stores use. Beware of signs such as "limited time offer" or "Reduced for closeout." Remember theses should be taken as both offers and warnings. Warnings of "No return or very limited if any warranty." I also agree with the idea of taking a friend or even two for reducing cost. The other good thing of having a friend or two with you is the ability of talking each other down and away from purchases. Last thing, the idea of going in with a set amount of money is also a good plan. This helps you control your impulse, and forces a certain level of thought to be keeping track of where your money is on you. Be it your pocket,wallet,purse, or any combination. You are at some leveal krpt anchored to reality. This also means that you should leave your ATM card at home or stashed in your car. Wharehouse clubs love ATM machines. I have more thoughts on certain clubs, but that will have to wait. Signed
Matthew
I understand the economics of ianstuart's post, but I make it a personal goal to reduce waste, even if it costs a little more. The large packages sold only at warehouse clubs often are smaller packages bundled together, and more packaging means more waste. I recently decided not to renew my big box membership. In addition to the waste factor, big boxes do not always have better prices, and they don't have a wide selection of organic and environmentally friendly products.











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