Amazon, Costco & Walmart creating bidding war for this private Warehouse Club
Amazon is purchasing Whole Foods to gain a larger presence in the grocery world. This will help Amazon expand its Amazon Fresh brand and increase its supply chain in organic foods. This move will help Amazon expand in the coming decade. slowly bring grocery prices down while grabbing market share. I accurately predicted that acquisition & I suspect amazon to set its sight on challenging Costco. For Amazon to challenge Costco and Sam Clubs warehouse club domination they may need purchase BJs. Jeff Bezos ultimate goal is to be the everything store. If Amazon purchased BJs it would further their supply chain while directly taking market share from Costco. Amazons could replace BJs club card cost model to being an Amazon Prime member. Amazon intends to get a larger presence in furniture, bulk shopping & Amazon exclusive items in the coming years. A warehouse chain could be a great way for Amazon to display merchandise and help change consumer trends. With the addition of Whole Foods into the Amazon pipeline purchasing BJs doesn't seem so far fetched and could be beneficial to Amazons new Whole Food brand. Jeff Bezos is waiting patiently for Leonard Green & Partners to put the private company BJs up for sale. With over 200+ stores this company would be a logical purchase for Bezos & the Amazon team to wage war on Costco & Sams Club. News of Amazon trying to enter this space will effect Costco & Walmarts stock dramatically. Additionally this may cause a bidding war to begin with Costco, Amazon & the Walton Family for BJs business. Costco currently has over 700 stores with a market cap of nearly 70 billion dollars. Sams Club (the warehouse club of Walmart) has over 650 locations and could surpass Costco's total store numbers with a BJs acquisition. BJs was took private for nearly $3 billion dollars several years ago. If the store was placed up for sale I could see a sale of $6 billion +. Jeff Bezos just spent $13.7 Billion to acquire Whole Foods so a $10+ billion dolllar purchase of BJs doesn't seem like a far out possibility to challenge Amazons two largest competitors.
