BJ's Wholesale Prepping for Possible IPO or Sale
BJ's Wholesale is reportedly making some changes. Reports say Leonard Green & Partners LP and CVC Capital Partners Ltd., the private-equity owners of warehouse retailer BJ’s Wholesale Club, are prepping for a possible sale or initial public offering. If conversations progress, The Wall Street Journal reported an IPO would likely happen in the second half of 2017. The membership-based retailer and competitor to Costco and Sam's Club operates more than 210 stores across the United States.
Total Retail's Take: BJ's Wholesale is another membership retailer struggling to compete with Amazon Prime's membership services. Prime membership has grown over 7 percent in just the last year, and with CEO Jeff Bezos investing in cargo fleets and Prime airplanes to guarantee speedy deliveries, traditional wholesale retailers are looking to other outlets to keep up. Also, as the membership-based retail model becomes more popular, the market is getting more saturated. This may result in contraction if the demand doesn't match the supply.