In what is quickly becoming a growing trend, another major retailer is acquiring a transportation provider to help secure its supply chain.
BJ’s Wholesale Club announced it is acquiring four refrigerated distribution centers and the related private fleet of longtime transportation partner Burris Logistics.
Terms of the deal were not disclosed. The transaction is expected to close in the second quarter.
“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 Bob Eddy, president and CEO of BJ’s Wholesale Club. “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.”
In the past year, BJ’s competitor Costco acquired last-mile delivery company Innovel, Ashley Furniture acquired the western division assets of Wilson Logistics, and American Eagle has made two acquisitions — last-mile technology provider AirTerra in May 2021 and then e-commerce fulfillment company Quiet Logistics for $360 million in December.
Related:
Read: American Eagle Outfitters acquires Quiet Logistics for $360 million
Read: Wilson Logistics’ Western operations acquired by nation’s biggest furniture retailer
Retailers are increasingly looking for ways to insource some of their logistics to ensure capacity.
Gary Petty, president and CEO of the National Private Truck Council, the association representing private trucking fleets, told Modern Shipper the trend is part of businesses looking to secure their supply lines.
“With extreme costs and widespread capacity limitations of the outside carrier market getting worse, upper management sees the private fleet as an essential and necessary ‘safe harbor’ from supply chain disruptions,” Petty said. “Corporations know they can count on their private fleets for dependability, cost efficiency, premium customer service and the highest safety standards in the industry.”
BJ’s (NYSE: BJ) operates 225 wholesale club locations and 156 BJ’s gas locations in 17 states.
Established in 1925, Burris Logistics operates a vast network of distribution centers (DCs) and transportation assets from Maine to Florida. The company also operates Honor Foods, a redistributor of frozen, refrigerated and dry foodservice products. In 2019, Burris merged with freight brokerage Trinity Logistics.
The transaction does not include Honor Foods or Trinity Logistics. Once the deal is finalized, BJ’s will take ownership of four Burris DCs in Rocky Hill, Connecticut; Orlando, Florida; Elkton, Maryland; and Independence, Kentucky, and their related private fleets.
Watch: How are retailers are securing capacity?
“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 Donnie Burris, CEO of Burris Logistics. “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.”
BJ’s said the Burris acquisition will help it secure its refrigerated supply chain.
“We look forward to welcoming all of the talented Burris Logistics team members who have supported our business to the BJ’s supply chain team,” said Jeff Desroches, executive vice president and chief operations officer, BJ’s Wholesale Club. “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.”
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