This Unexpected Warehouse Store Has Become One Of Amazon's Biggest Competitors

Amazon, the online shopping giant, has been a force to reckon with for years. It has a large number of warehouses, also known as fulfillment centers. According to the Amazon website, its fulfillment centers are meant to ensure that customers get their orders correctly. A summary on the website reads, "The name reflects the function: Amazon fulfillment centers are charged with fulfilling customer orders. In other words, Amazon warehouses not only store products but also serve as distribution centers where associates pick, pack, and ship orders quickly and efficiently. Amazon robotics, scanning machines, and computer systems in fulfillment centers can track millions of items in a day."

Amazon's major competitors in the retail area, per Investopedia, include big names such as Target, Walmart, Best Buy, and Costco. One of the most significant landmarks for Amazon is the fact that it acquired grocery store chain Whole Foods in 2017, making its presence felt in a rather competitive market. According to Forbes, this development led to some significant changes in the industry, such as Walmart coming up with yearly grocery delivery services for $98. That said, the pandemic has had an impact on the industry, and Amazon now has an unexpected competitor to think about.

According to CNN Business, BJ's Wholesale Club has gained unexpected momentum during the pandemic. The club allows its members to pay a $55 annual fee for its membership and has a wholesale model that lets customers buy a massive amount of products at low rates. As per Forbes, BJ's Wholesale Club claims to let its customers save as much as 25 percent or more on their groceries compared to the traditional grocery chains. BJ's supply chain, the article further highlights, is rather reliable and works efficiently, sourcing products straight from manufacturers. The warehouse is located on the East Coast and also has outlets in Ohio and Michigan and offers a range of items to its customers including groceries, food items, and other products such as home appliances, furniture, electronics, and more.

BJ's warehouse concept has caught the attention of buyers who, as explained by CNN Business, have been looking for goods in bulk on their grocery runs during the pandemic and looking for ways to save up. The total numbers of new members this year at BJ's is staggering: over 500,000. The brand has managed to leave behind its competitors, and its stock is up by more than 70 percent this year. It remains to be seen whether BJ's can keep its growth rate steady and continue achieving new milestones post the pandemic.