BJ’s Wholesale Club is the latest merchant to take more direct control of its distribution. The Westborough, MA-based club operator announced that it would acquire the assets and operations of four perishable distribution centers and the related transportation fleet from Burris Logistics, its temperature-controlled distribution partner for more than 20 years.
The move follows the trend of several retailers in various channels (including Ahold Delhaize USA, Target and Dollar General) which in recent years have consolidated warehousing and logistics operations under their own roofs.
The proposed acquisition includes four perishable goods distribution centers located in: Rocky Hill, CT; Orlando, FL; Elkton, MD; and Independence, KY. Also included in the pending deal are the personnel of these facilities, the associated real property, and the capital assets necessary for operations.
“For more than 20 years, we have enjoyed a true partnership with the Burris Logistics team as we distribute the freshest perishable products to clubs throughout our chain. As we continue to accelerate our new club growth, broaden our footprint and expand our fresh food offerings, we are excited to insource these capabilities to support our future growth,” said BJ’s CEO Bob Eddy. “I want to thank the entire Burris team for their partnership, and we look forward to welcoming the Burris team members supporting the BJ’s operations to our family.”
According to Jeff Desroches, BJ’s executive VP and operations officer, “The addition of these four facilities and the private fleet is part of a larger strategy to expand and scale efficient supply chain capabilities, positioning BJ’s for continued growth while delivering the best quality and freshest products to our members.”
“BJ’s has assembled a fantastic business and team. Burris Logistics has been proud to partner with BJ’s on its growth and transformation over the last several years,” said chief executive Donnie Burris. “This acquisition represents the next chapter in Burris Logistics’ evolution and presents amazing opportunities for both BJ’s and the team members at these distribution centers. I am incredibly proud of what we have created and extremely excited to see the future growth for all involved.”
For Burris, the loss of the BJ’s revenue will likely force the privately-held Milford, DE-based distributor to reshape its business model. In July 2021, the fifth-generation family-owned firm exited the traditional wholesale supply business when it sold its Albertsons Mid-Atlantic division
frozen food services contract to C&S Wholesale Grocers. However, Burris, which was founded in 1925, remains a significant factor with multiple temperature-controlled storage distribution centers (PRW Plus) and with its foodservice redistribution business (Honor Foods).
Specific terms of the transaction were not disclosed. The deal, which has been unanimously approved by the boards of directors of both companies, is subject to regulatory approval and traditional closing processes and is expected to close in the second quarter of 2022.
