Walmart Latin America: ‘Sustainagility’ as key to profitable growth
Miami — Walmart Latin America CEO Eduardo Solorzano said Thursday in a speech that Walmart is using the company’s expertise in sustainability as a means for profitable growth.
In his address at the annual "Outlook of the Americas" luncheon of the Association of American Chambers of Commerce in Miami, Solorzano said, "We are sharing best practices across markets and developing new formats to serve the unique customs and needs of Latin America customers, but it will take leveraging the company’s expertise in sustainability to manage costs."
According to Solorzano, Walmart will move more aggressively to integrate a holistic sustainability plan that will bring the company to 100% renewable energy and zero waste. “We call it ‘sustainagility,’” he said.
Walmart opened its first store in Latin America, a Sam’s Club, in Mexico 20 years ago.
BJ’s Wholesale to explore sale of company
Natick, Mass. — BJ’s Wholesale Club confirmed on Thursday that it will potentially put it up for sale.
According to a report by the New York Times, the discounter said it will “explore and evaluate strategic alternatives, including a possible sale of the company,” confirming ongoing market rumors that BJ’s was a buyout candidate.
The report said that BJ’s has hired Morgan Stanley to run the sales process.
Private equity firm Leonard Green & Partners acquired a 9.5% stake in the retailer last July. In January, BJ’s announced it would close five underperforming stores.
BJ’s Wholesale placed on sales block
WESTBOROUGH, Mass. — After months of speculation, BJ’s Wholesale Club early Thursday morning confirmed the company has decided to explore and evaluate strategic alternatives. Coupled with that announcement was a positive sales story for the year.
BJ’s stock was up by more than $5 to $48.66 in early morning trading on Thursday. Over the last year, the company’s shares have risen about 30%, fueled in part by takeover speculation. Rumors that BJ’s may be a takeover target have circulated since the summer, when Leonard Green & Partners bought a 9.5% stake.
An independent committee of BJ’s has engaged Morgan Stanley as its financial adviser to assist in this process.
BJ’s also reported positive January sales results despite the number of cold-weather storms that recently have swept the country. Sales were up 6.5% to $779.8 million. Comparable sales also were up 2.7%, including a contribution from sales of gasoline of 2.4%.
Excluding the impact of gasoline, merchandise comparable-club sales increased by approximately 0.3%. Severe snow storms affecting the Northeast and Mid-Atlantic regions had a negative impact on merchandise comparable club sales of approximately 2.5%, the club retailer estimated.
BJ’s competitor Costco Wholesale reported net sales of $6.30 billion for the month of January, the four weeks ended Jan. 30, an increase of 12% from $5.62 billion during the similar period last year. Total U.S. same-store sales for the month were up 6%. Excluding fuel, U.S. comps rose 4%.