While Sam’s Club and Costco have been consistently swooping the market as buyers purchase tons of their products at a time, it looks like there is a new player in town. Reports suggest that BJ’s Wholesale Club is making its mark in the market as it beats Amazon stock.
BJ’s Wholesale Club’s one-year revenue amounted to $3.9 billion. It has over 200 self-service stores that feature a wide range of products. Its growth rate has left Costco and Sam’s club far behind. The reason could be that it has a highly efficient digital commerce section. It has made curbside pickup and same-day delivery possible even during the pandemic, which has resulted in an increase of over 300 percent.
This incredible success has attracted several investors. Its stock is up by over 70 percent, beating Walmart, Costco, and Amazon stock.
Pandemic Conditions Helped BJ’s Wholesale Club Beats Amazon Stock
While BJ’s per-pandemic sales were not great, it has done remarkably well during these tough times. As the pandemic has stopped many people from eating out and forced them to buy in bulk, the retail revenue of BJ’s has increased significantly.
Another reason why BJ’s Wholesale Club has outdone Costco and Amazon stock is that their stores were largely located in severely-hit coronavirus regions, like Florida and the Northeast region. As per Gutman, consumer shopping pattern has changed significantly in areas where the COVID-19 pandemic caused the most damage.
Market analysts said that the growth rate BJ’s Wholesale Club is witnessing is practically unheard of. They have added over 500,000 new members to their club as of now. Not just that, they are also acquiring grocery store shares.
However, as several restaurants are reopening, it’s unclear if the company can sustain this growth.
BJ’s Carry More Varieties Even Through Much Smaller Than Costco Or Sam’s Club
Based in Massachusetts, BJ’s started its business in 2018. It is much smaller and covers much fewer regions than Costco, Sam’s Club, and Amazon. This is why beating Amazon stock has been a shocker to everyone.
The company carries about 7,200 varieties, while Costco carries around 3,200 and Sam’s Club carries around 5,200. Michael Lasser, a USB analyst, also mentioned that around 45 percent of BJ’s customers make $100,000 per year. This is much less than Costco’s, which is 49 percent.
Market analysts believe that due to the pandemic, a majority of the consumers are making far fewer marketing trips, which has forced them to stock products. Given the situation, it’s only natural that BJ’s is capitalizing on their easy e-commerce strategies, making it possible for them to even beat Amazon stocks.
