Costco Wholesale announced it has completed its acquisition of Innovel Solutions with a US$1 billion purchase of the subsidiary of Transform Holdco, the parent company of Sears and Kmart.
The acquisition will help Costco to deliver larger items to its customers, which is Innovel’s expertise. Currently Innovel operates 11 distribution centers, as well as over 100 last mile, cross dock facilities, for the unloading of materials from trucks and trains directly to vehicles, which then deliver the items to consumers.
“We believe the acquisition will allow us to grow our e-commerce sales of big and bulky items at a faster rate,” Costco CEO Craig Jelinek said in a statement.
Such ‘big and bulky’ items include an array of items: furniture, mattresses, televisions, major appliances, grills, patio furniture, fitness equipment and wine cellars, to name a few.
Costco currently operates 786 warehouse stores, the majority of which are in North America (547 in the United States and 100 in Canada) with the rest in a few other countries.