Wholesale Club War: BJ’s vs. Costco
BJ’s Wholesale Club delivered healthy sales this spring. In April, the wholesale club retailer registered an 8.5% sales increase, and in May the company’s sales increased $7.4% from the same period the previous year. But the company has been seen as facing stiff competition from Costco, and now the company will accept an offer from two leading investment firms to buy the chain with the ambition of enhanced competition against Costco in the future.
With 190 wholesale club retail stores in 15 states, Westborough, Massachusetts-based BJ’s (NYSE: BJ) has performed well across all categories this year, improving across all categories, from beauty care products to coffee and small appliances. But analysts have been neutral on BJ’s stock because of stiff competition that’s coming on fast from Costco (NASDAQ: COST).
(as reported by IB Times)