The Group's principal activity is to operate membership warehouses. These warehouses offer members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories and self service warehouse facilities. It buys the majority of its merchandise directly from manufacturers and route it to a cross-docking consolidation point (depot) or directly to its warehouses. Its warehouse format averages approximately 143,000 square feet. The Group's depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses. As of 30-Aug-2009 the Group operated 527 warehouses in the United States, Puerto Rico, Canada, United Kingdom, Japan, Korea, Taiwan and Australia, as well as 32 locations in Mexico, through a joint venture.
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