BJ’s Wholesale Club Holdings, Inc.
’s
BJ
focus on simplifying assortments, boosting supply-chain and merchandising capabilities, and expanding into high-demand categories appears encouraging. In latest developments, management agreed to purchase the assets and operations of four refrigerated distribution centers and the related private transportation fleet from its partner Burris Logistics. This will help the buyer insource its perishable supply chain. However, terms of the deal remained under wraps.
This deal consists of four perishable goods distribution centers (Rocky Hill, CT; Orlando, FL; Elkton, MD; Independence, KY) along with the personnel of these facilities, the associated real property and the capital assets for operations. The pending buyout is unanimously approved by both companies’ boards and is subject to regulatory and traditional closing conditions. This is likely to conclude during the second quarter of 2022.
Via the addition of four distribution centers and a transportation fleet, BJ’s Wholesale Club will be able to strengthen supply-chain facilities and drive overall growth. This will aid BJ to offer top-quality and fresh products to consumers.
BJ’s Wholesale Club’s partnership with Burris Logistics dates back to more than 20 years. This partnership complements BJ’s perishable business and supports supply-chain functions. Burris Logistics is quite a popular enterprise offering temperature-controlled distribution and logistics services across the United States.
What’s More?
BJ’s Wholesale Club is focused on enhancing omni-channel capabilities and ramping up delivery services. We note that BJ built a strong digital portfolio with Bjs.com, BerkleyJensen.com, Wellsleyfarms.com, delivery.bjs.com and its mobile app. This enables members to buy, review products and digitally add coupons to their membership card.
BJ has been directing resources toward expanding its digital capabilities for a while to better engage with members, providing them with a convenient way to shop, including same-day delivery, curbside pick-up and buy-online, pickup-in-club.
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Sturdy membership trends, assortment initiatives, enhanced digital capabilities and a robust real estate pipeline are steadily contributing to its performance. All these factors have been aiding BJ’s comparable sales growth for a while now. Shares of this presently Zacks Rank #3 (Hold) player have surged 34.5% in the past year against the
industry
’s 30.9% decline.
3 Stocks to Consider
Some better-ranked stocks are
Albertsons Companies
ACI
,
Dollar Tree
DLTR
and
Costco
COST
.
Renowned grocery retailer Albertsons currently sports a Zacks Rank #1 (Strong Buy). ACI delivered a trailing four-quarter earnings surprise of 31.8%, on average. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for Albertsons’ current financial-year sales suggests growth of 1.6% from the year-ago period’s reading. ACI has an expected EPS growth rate of 8% for three-five years.
Dollar Tree, a renowned discount retailer, has a Zacks Rank of 2 at present. DLTR has a trailing four-quarter earnings surprise of 8.8%, on average.
The Zacks Consensus Estimate for Dollar Tree’s fiscal 2022 sales suggests growth of 5.3% and 13.1%, respectively, from the corresponding year-ago reported figures. DLTR has an expected EPS growth rate of 12.2% for three-five years.
Costco, a general merchandise retailer, carries a Zacks Rank #2 (Buy), currently. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
The Zacks Consensus Estimate for Costco’s fiscal 2022 sales and EPS suggests growth of 10.9% and 14%, respectively, from the corresponding year-ago tallies. COST has an expected EPS growth rate of 8.8% for three-five years.
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