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Home / Business / BJ's wholesale stocks jump 27% in the return to the stock market

BJ's wholesale stocks jump 27% in the return to the stock market



BJ's wholesale has returned to the stock market after seven years, and despite the recent results and fierce competition from Inc's Sam's Club chain, Wholesale and of course Amazon.com, has one received a warm welcome.

BJ's share rose 27% to $ 21.57. On Wednesday, the BJ share was listed at an initial public offering (IPO) of $ 15, the upper end of a previously stated range of $ 15 to $ 17, which predicted a healthy appetite for the stock. Most recently, BJ was traded on the stock market when it was bought in 2011 by private equity firms Leonard Green & Partners LP and CVC Capital for $ 2.8 billion. Seven years is an unusually long time for a company that is held by private equity, which typically seems to turn a company over within three to five years.

Since then a lot has changed in the retail trade, also in the bulker sector. Costco, which reports strong comparable revenue growth quarter on quarter despite the threat of its prime membership model and relative newcomers like Boxed, continues to enjoy strong loyalty from its affluent clientele for its $ 20 billion Kirkland

# 39; s club aggressive, closing weak locations, closing 10% of its 630 stores this year and aggressively increasing its tech firepower as well as improving its food supply. [19659005] Comparable revenue increased 3% in the Sam & # 39; s club last year, 4% at Costco and only 0.8% at BJ, after two years of sharp declines. Unlike its rival, BJ is not a national chain, operates 200 stores in 16 states, more exposed to the vagaries of the regional economy and weather. (Costco has about 750 clubs, including 514 in the US)

Yet, the 34-year-old retailer under BJ CEO Chris Baldwin has modernized his digital and technical capabilities, enabling customers to do things like using smartphone apps Scan the items while shopping the aisles for faster check-out. And camp clubs and the lower prices they offer remain popular among buyers.

BJ's IPO is the second in the year after Hudson's to do business at airports, demonstrating that despite the tumultuous environment, retailers still have successful stock market quotes for the industry.


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