Multiple Sam's Club Stores to close

arizonaguy
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Re: Multiple Sam's Club Stores to close

Post by arizonaguy »

storewanderer wrote: February 3rd, 2018, 10:37 pm I wonder if we could see a situation where BJ's takes over Sam's Club and anything that needs to be divested goes to Costco?
Not a chance. The private equity firm that owns BJ's is trying to sell.

https://nypost.com/2017/09/26/bjs-owner ... -for-4-5b/

Walmart was interested in 2011.
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Re: Multiple Sam's Club Stores to close

Post by mbz321 »

arizonaguy wrote: February 4th, 2018, 8:46 pm
storewanderer wrote: February 3rd, 2018, 10:37 pm I wonder if we could see a situation where BJ's takes over Sam's Club and anything that needs to be divested goes to Costco?
Not a chance. The private equity firm that owns BJ's is trying to sell.

https://nypost.com/2017/09/26/bjs-owner ... -for-4-5b/

Walmart was interested in 2011.
Yeah. I'm not sure if BJ's is strong enough to do any buying at this point. They recently shut down all their food service operations (although I think a few of the busier ones were replaced with Dunkin' Donuts) and I heard some, if not all stores, eliminated jewelry. They are also very highly 'promotional' with their memberships and give them away for next to nothing if you find the right deal (Sam's did this to some extent as well).
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Re: Multiple Sam's Club Stores to close

Post by pseudo3d »

Wonder if Walmart will end up buying BJ's Wholesale Club and then converting Sam's Club to that format, since it seems to do better in competing with Costco than Sam's. Might work...
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Re: Multiple Sam's Club Stores to close

Post by BillyGr »

I suppose it could also go the opposite way - if someone comes along willing to buy BJ's and would then purchase some or all of the Sam's Club locations to create one larger chain (particularly since BJ's is limited to mainly east coast states, excepting Ohio and Pennsylvania)?

Also one might wonder if the food service really did much (other than providing a service for customers already in the store), unless they changed it over the years? I remember it being fairly simple (like hot dogs, snack items, drinks) and the items used to be quite low priced it didn't seem like they made (very) much off of it anyway?
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Re: Multiple Sam's Club Stores to close

Post by storewanderer »

Whatever private equity owns BJ's wants out. Another private equity will come along and give it a ride.

I remember years ago hearing Wal Mart (rumors) was trying to offload Sam's to private equity but for whatever reason it never happened.

BJ's stores look a little different than a usual warehouse. I've never been in one but I see what look like service delis with slice to order lunchmeat, more bulk produce, and even some things like bulk bagels in a bakery?

If they are more grocery focused I can see why they may be having problems. Their stores look quite a bit like Sam's Club in my area; quite spacious. Nothing like Costco which is not very spacious and very packed with merchandise at every angle, stacked high.
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Re: Multiple Sam's Club Stores to close

Post by mbz321 »

storewanderer wrote: February 7th, 2018, 8:49 pm
BJ's stores look a little different than a usual warehouse. I've never been in one but I see what look like service delis with slice to order lunchmeat, more bulk produce, and even some things like bulk bagels in a bakery?

If they are more grocery focused I can see why they may be having problems. Their stores look quite a bit like Sam's Club in my area; quite spacious. Nothing like Costco which is not very spacious and very packed with merchandise at every angle, stacked high.


BJ's to me always seems like a 'mini Costco/Sam's'. The stores are generally smaller, and funny you mention the Deli/Bakery bagels (you select them yourself so you can mix and match varieties), as these are the only few reasons why I occasionally shop there (and sometimes their monthly sale ad has better deals than Costco on similar products). Packages are usually smaller than Costco/Sam's for certain items, and you can buy single loaves of bread, etc. (at least as of a few years ago). They seem to generally be more food focused. Unfortunately, the quality and presentation of their prepared foods and meat is nowhere near Costco's. The produce at BJ's is merchandised more like a traditional supermarket vs. pallets and a walk in cooler that Costco/Sam's use. BJ's also takes manufacturers coupons, but even if using coupons, I've found Costco typically still has better prices. They also rely heavy on self-checkouts that are usually kind of wonky. Otherwise, most have gas stations/tire centers (for a short while, they partnered with Monro Muffler/Brake and offered additional services, but that seems to have ended as well) like the other two.

And the Costco's near me are very spacious, but they are generally newer stores in my area of PA. However unlike BJ's, they are usually packed with people all the time which probably makes them not feel as spacious.
BJ's seems to hold its own, especially since they try to stick away from opening stores right on top of a competitor.
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Re: Multiple Sam's Club Stores to close

Post by arizonaguy »

BillyGr wrote: February 7th, 2018, 11:35 am I suppose it could also go the opposite way - if someone comes along willing to buy BJ's and would then purchase some or all of the Sam's Club locations to create one larger chain (particularly since BJ's is limited to mainly east coast states, excepting Ohio and Pennsylvania)?

Also one might wonder if the food service really did much (other than providing a service for customers already in the store), unless they changed it over the years? I remember it being fairly simple (like hot dogs, snack items, drinks) and the items used to be quite low priced it didn't seem like they made (very) much off of it anyway?
I just don't see Walmart selling Sam's Club. Many Sam's Club locations are in Walmart parking lots or within a short distance of a Walmart. I can't imagine Walmart being too happy with a competitor so close. Plus, Sam's Club doesn't have its own distribution network and instead uses Walmart's distribution network.

Could Walmart kill its warehouse club concept altogether? Yes, but I don't think it will.

Walmart as a whole is making a conscious effort to shift capitol expenditures from brick and mortar to e-commerce (at least in the near term). I can see them making a play for Boxed.com (and it would be a better fit for them versus Kroger).

It wouldn't surprise me to see Walmart shrink Sam's Club's as well as Walmart's own brick and mortar footprint further over the next few years but I don't think they'll completely abandon Sam's Club.
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Re: Multiple Sam's Club Stores to close

Post by wnetmacman »

arizonaguy wrote: February 9th, 2018, 8:34 am It wouldn't surprise me to see Walmart shrink Sam's Club's as well as Walmart's own brick and mortar footprint further over the next few years but I don't think they'll completely abandon Sam's Club.
I see somewhat of the exact opposite. They have been heavily expanding the Neighborhood Market stores, and even added a few fill-in Supercenters. They are using these new stores as small warehouses for the online apps, so you can just go pick up groceries without setting foot in the stores.

This does, however, stop impulse buying. That's a big part of any brick and mortar retailer's business, and it would hurt any of them to lose too much of it.

Only time will tell, but I really think that for Walmart to change that much, it would hit their bottom line.
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Re: Multiple Sam's Club Stores to close

Post by BillyGr »

wnetmacman wrote: February 9th, 2018, 8:38 am
arizonaguy wrote: February 9th, 2018, 8:34 am It wouldn't surprise me to see Walmart shrink Sam's Club's as well as Walmart's own brick and mortar footprint further over the next few years but I don't think they'll completely abandon Sam's Club.
I see somewhat of the exact opposite. They have been heavily expanding the Neighborhood Market stores, and even added a few fill-in Supercenters. They are using these new stores as small warehouses for the online apps, so you can just go pick up groceries without setting foot in the stores.

This does, however, stop impulse buying. That's a big part of any brick and mortar retailer's business, and it would hurt any of them to lose too much of it.

Only time will tell, but I really think that for Walmart to change that much, it would hit their bottom line.
Although perhaps not as much as would first be thought - after all, if you place an order there and go to pick it up, should you think of something else you forgot to get (or hear an ad for product x while en route that sounds good) it would only be sensible to grab it while you are there, rather than making another stop, at least it seems?
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Re: Multiple Sam's Club Stores to close

Post by wnetmacman »

BillyGr wrote: February 9th, 2018, 10:59 am Although perhaps not as much as would first be thought - after all, if you place an order there and go to pick it up, should you think of something else you forgot to get (or hear an ad for product x while en route that sounds good) it would only be sensible to grab it while you are there, rather than making another stop, at least it seems?
Have you used Walmart or Sam's Pickup? You do not enter the store. No checkout line. So no impulse buying.
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