BJ’s Commits to Growing Fresh Business
BJ’s Wholesale Club gained grocery market share in both units and dollars during its recent third quarter, ended Nov. 2. One of the highlights of the quarter was its fresh performance, with perishables continuing to drive strong comp sales as the retailer advances its Fresh 2.0 initiative.
“Fresh 2.0 was devised from our own data informing us that members who shop BJ's as their primary fresh destination visit us at least once a week and on average, have nearly 30% greater baskets per trip compared to members who don't engage with us in fresh,” explained Robert W. Eddy, BJ’s president and CEO, during the company Q3 earnings call. “As a result, these members spend about eight times per year [more] than non-fresh shopping members. They're also more likely to be higher-tier members. Our fresh initiatives are designed to encourage these behaviors across our broader member base.”
To strengthen its business for the long term, BJ’s has made several investments in fresh over the past year. This includes bringing more freshness to its produce assortment. BJ’s has also expanded vendor relationships to increase in-stocks and put new seasonally relevant produce on rotation.
Additionally, BJ’s completed the rollout of its stand-alone coolers station at the front entrances of stores to highlight quality and value, with the aim of drawing members into the category.
The retailer even implemented essential fresh training across clubs.
This work in fresh is paying off, as evidenced by its Q3 results. Perishables led comp growth, boosted by a strong showing in dairy, meat and, of course, produce.
“Our produce categories delivered low double-digit comp growth in the third quarter, almost entirely driven by unit volumes, and our [Net Promoter Score] performance in fresh has also dramatically improved in the last two quarters,” said Eddy. “We're thrilled with the early results and are excited about the long-term benefits of more loyal members driving sustainable growth in our business.”
Other highlights of BJ’s impressive Q3 results included an increase in comparable-club sales by 1.5% year over year (YoY) (comps excluding gasoline sales rose by 3.8% YoY, led by strong traffic); digitally enabled comp growth was 30.0%, reflecting two-year stacked comp growth of 47.0%; and membership fee income increased by 8.4% YoY to $115.0 million.
Marlborough, Mass.-based BJ’s currently operates more than 240 clubs and 180-plus BJ’s Gas locations in 20 states. The company is No. 30 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
