BJ’s Expands Fresh 2.0 Initiative to Meat, Seafood
During BJ’s Wholesale Club’s first-quarter earnings call this week, BJ’s leadership provided an update on the club retailer’s Fresh 2.0 initiative that debuted last year.
Fresh 2.0 was launched based on the insight that perishables, especially produce, dictate BJ’s members' first weekly shop. Members were then found to regularly re-engage with the produce category.
“We knew that if we won in produce, we would win trip frequency and wallet share,” said Bob Eddy, chairman and CEO. “Since launching in the second quarter of last year, the program has driven quarterly produce comps of high single digit to low double digits.”
Following its success in produce, BJ’s has extended Fresh 2.0 to meat and seafood, which were piloted in Florida late last year and launched chain-wide this month. Similar to the company’s early work in fresh produce, the meat and seafood initiatives are built on comprehensive market studies and competitive assessments.
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“Our research determined that our biggest opportunity was in our assortment and presentation,” explained Eddy. “First, we optimized our assortment to better reflect localized member preferences, adding items that members wanted and removing less relevant ones. Second, we added signage and dividers in our coolers for cleaner presentation and easier navigation, reminiscent of our efforts in produce. We also reflowed our merchandise to reflect how our members shop meat.
“For example, we created a single destination for pre-seasoned and marinated proteins, making these ready-to-cook products easier to find,” he continued. “While these products comprise a small percentage of our protein sales today, the example illustrates how we're leveraging our understanding of shopper behavior to rethink all aspects of our business.”
Further, spending behavior at BJ's remains solid. For the company’s first quarter, ended May 3, comparable-club sales increased by 1.6% year over year (YoY). Excluding the impact of gasoline sales, comps rose 3.9% YoY, led by traffic growth.
Specifically, the perishables, grocery and sundries divisions delivered more than 4% comp growth, with unit volumes increasing across all three divisions.
Marlborough, Mass.-based BJ’s currently operates more than 255 clubs and 190 BJ’s Gas locations in 21 states. The company is No. 28 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America.
