Transformation on Track at BJ’s Wholesale Club
BJ’s Wholesale Club’s latest fiscal report shows how the retailer’s expanded digital capabilities, private-brand assortment and marketing campaigns are helping drive growth.
The club retailer reported same-store sales growth of 1.6%, excluding gasoline sales, for the second quarter ended Aug. 3. Net income was $54.5 million, or 39 cents a share, compared with a loss of $5.6 million, or 5 cents a share, in the year-ago period. Analysts had expected earnings per share of 37 cents.
“Second-quarter results for sales and earnings were in line with our expectations,” said Christopher J. Baldwin, BJ's chairman and CEO. “We delivered improved margins and continued to grow earnings as we executed against our strategic priorities. Our sales were particularly strong in the second half of the quarter as weather improved, and we ended with strong momentum.”
Total revenue rose 1.2% to $3.345 billion, as retail sales grew 1.1% to $3.3 billion and membership fee income increased 6% to $74.7 million.
BJ’s affirmed its fiscal 2019 guidance for EPS of $1.42 to $1.50, and for sales of $12.9 billion to $13.2 billion.
Earlier this year, BJ’s launched a cross-channel campaign highlighting the company’s eccentric take on how to attract the wholesale club shopper.
“Consumers have more shopping options than ever, and we know some may not be looking for another wholesale club,” said Lee Delaney, EVP and chief commercial officer at BJ’s. “But we know that once shoppers realize that BJ’s Wholesale Club can save them up to 25% off grocery store prices every day, they’ll be eager to join. Our new campaign builds on that promise, showcasing our fresh take on the wholesale club and all of the reasons to join BJ’s.”
The campaign highlights several attributes that differentiate BJ’s from its competitors, and focuses on what consumers are looking for in their shopping experience.
BJ’s has also focused on expanding its private-brand assortment and bolstering digital initiatives such as BJs.com; buy online, pick up in-club; same-day grocery delivery; digital coupons; and BJ’s Stocked.
BJ’s announced earlier this week that it will be opening two new club and BJ’s Gas locations in Chesterfield, Mich., and Pensacola, Fla., in early 2020.
The clubs will both feature a full service deli, extensive assortment of fresh foods, paper products and other household essentials like cleaning products, pet supplies, diapers and more. Additionally, the clubs will offer a wide selection of fashion for the whole family, seasonal items, tech, toys and a selection of local products.
Headquartered in Westborough, Mass., BJ’s operates 217 warehouse club stores and 141 BJ’s Gas locations in 16 states.