Reports: Amazon Interested in Buying BJ’s Wholesale Club
Amazon.com is interested in buying BJ’s Wholesale Club, which is currently up for sale, according to the New York Post. BJ’s, which operates 210 club stores in 15 states along the eastern seaboard from Maine to Florida, is already interviewing bankers so it can be begin a sale process. Meanwhile, Amazon — which has been exploring an expansion into brick-and-mortar — has also recently discussed evaluating BJ’s as an acquisition target. It’s not known if the e-commerce giant is still interested or, if it is, will bid on the chain if it goes on the block, the Post said. BJ’s owners initially were interested in offering the company’s shares on Wall Street in an initial public offering, but decided against it due to uncertainty in the retail sector.
Total Retail’s Take: At first blush, the marriage of Amazon and BJ’s could be a solid union. For one, BJ’s and Amazon share overlap when it comes to merchandise, as both do a big business selling groceries, electronics, home goods and auto parts. BJ’s also has a robust business in appliances and furniture, niches where Amazon is looking to expand. Furthermore, Amazon has been struggling to find enough warehouse space for its Amazon Fresh delivery service, and adding BJ’s could be a help, at least in the Northeast. Finally, BJ’s could leverage Amazon to help grow its online business, expand beyond its Northeast base, and retain newer members.