Costco , Sam’s Club of Wal-Mart , and privately owned BJ’s Wholesale offer over 1,475 membership-only warehouse club locations throughout the world. In contrast to much of the rest of the retail industry, Costco has continued to outperform while increasing its membership and net sales annually. This is despite the pressure from online retailers like Amazon.com on the retail industry. Going forward, though, what is a Costco membership really worth?
Ask six senior merchandising executives from Walmart and Sam’s Club what keeps them up at night and be prepared for an interesting collection of answers relating to key competitors and assorted challenges.
After months of speculation, BJ’s Wholesale Club has entered a definitive agreement to be acquired by Leonard Green & Partners and CVC Capital Partners for an all-cash transaction valued at about $2.8 billion.
BJ’s board of directors unanimously approved the merger agreement — which is subject to approval of BJ’s shareholders, customary closing conditions and regulatory approvals — and recommends that all BJ’s shareholders vote in favor of the transaction.
(as reported by RetailingToday.com)
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)
BJ’s Wholesale Club is in a preliminary discussion to potentially be acquired by private equity firm Leonard Green & Partners. Both parties have signed a confidentiality agreement. The equity firm already owns 10% of BJ’s stock that it had purchased last summer…(read more)
Sam’s Club will be joining other large retailers in offering two of Apple’s most popular products, the iPad and iPhone. During a Wednesday morning presentation, executive vice president of merchandising, Linda Heffner, announced the company’s decision to a panel of financial analysts…Read More