B.J.'s Wholesale Club
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Headquarters
350 Campus Drive, Marlborough, 01752, Massachusetts, United States -
Annual Global Sales
$16,667,000,000
Total U.S. Sales
$19.5 billion for fiscal 2023 (ended Feb. 3, 2024)
Total U.S. Stores
243 clubs and 174 BJ's Gas locations across 20 U.S. states (as of Feb. 3, 2024)
Shopper Count
Approximately 7 million paying members (as of March 2024)
Key Facts
- Third-largest warehouse club chain in the U.S.
- Went public in 2018 after seven years as a privately traded company
- The only warehouse club chain to accept all manufacturer coupons
- Stocks some 7,200 SKUs, more than any other warehouse club chain
- Groceries account for approximately 75% of BJ's total sales
- Membership fee income was $420.7 million for 2023
- Was the biggest mover in Dunnhumby's 2022 Retail Preference Index over the last three years, climbing from 27th to 10th place in 2022
- Ranked No. 7 in Dunnhumby's inaugural eCommerce Retailer Preference Index in 2022
- Ranked fourth in superstores and warehouse club stores in Newsweek’s 2022 list of America’s Best Retailers
Key Executives
- President and Chief Executive Officer: Robert Eddy
- EVP, Chief Digital Officer: Monica Schwartz
- EVP, Chief Financial Officer: Laura Felice
- EVP, Chief Commercial Officer: Paul Cichocki
- EVP, Chief Merchandising Officer: Rachael Vegas
- EVP, Chief Operations Officer: Jeff Desroches
- EVP, Chief Information Officer: Anjana Harve
- EVP, Strategy and Development: William (Bill) Werner
- EVP, Chief Membership Officer: Tim Morningstar
- SVP, Chief Technology Officer: Scott Floeck
- SVP, Field Operations: Gina Iacovone
- SVP, General Merchandise Manager, Perishables, Grocery and Beverages: Mike Leary
- SVP, Own Brands and Innovation: Amanda Irish
- VP, Digital Commerce: Mike Yusikones
- Senior Director, Loyalty & Reward: Jennifer Marrazzo
- Senior Infrastructure Solutions Manager: Joseph Lawson
- Director of Onmichannel Plannin & Analysis: John Cronin
- Director of Product Management: Frank Ogura
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Displays & Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Retail Media
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
BJ’s Wholesale Club reported the most profitable year in its history in 2022. For the first time it surpassed $1 billion in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). The retailer also made progress on its strategic priorities, including membership base expansion (which increased 8% year over year, to $101.8 million), a growing digital business and new store openings.
BJ's Wholesale Club is the third-largest warehouse club chain in the U.S., trailing channel competitors Costco and Sam's Club. Created in 1984 by now defunct department store chain Zayre, BJ’s Wholesale Club takes the credit for first introducing the warehouse-club concept to the Northeast. The warehouse club chain has since expanded across the East Coast, operating 243 clubs across 20 U.S. states and serving more than 7 million members. In its core New England market, BJ’s operates almost three times the number of clubs as the next largest warehouse club competitor. Its membership renewal rate currently stands at 90%, slightly lower than Costco's, which typically falls in the low 90s.
Clubs are usually located near residential areas and are clustered to increase market penetration and name recognition. The money-saving strategy lets the retailer combine marketing expenditures and distribution. BJ’s stores are smaller than those of other warehouse club chains, averaging 113,000 square feet. (The average Costco store is 146,000 square feet while Sam's Club stores average 134,000 square feet.)
BJ's differentiates itself from channel rivals by catering more to the individual consumer as opposed to small businesses. The chain regularly boasts that it is the only warehouse club chain to accept all manufacturer coupons and carries more SKUs than its channel competitors. (See “Merchandising Strategy.”)
At the end of fiscal 2021, BJ’s also brought its end-to-end perishable supply chain in-house by acquiring four distribution centers (Rocky Hill, Connecticut; Elkton, Maryland; Independence, Kentucky; and Orlando) and related private transportation fleet from longtime partner Burris Logistics, Milford, Delaware.
While bulk packaging still constitutes the bulk of BJ’s product mix, the retailer has also made a concerted effort to introduce more products in "supermarket sizes." BJ's is particularly intent on carrying smaller packaging for perishables, where consumers have indicated that they prefer such sizes. The retailer is also making a renewed effort to market its private labels Wellsley Farms and Berkley Jensen. After expanding the product assortment in 2017, BJ's has pushed private label SKUs from these brands in stores and online.
In 2011, BJ’s was purchased by the private-equity firms of Leonard Green & Partners and CVC Capital Partners for $2.8 billion and taken private, though went public again on June 28, 2018, and has since reported positive sales growth.
Must-Know Terms
Must-Know Terms
- Berkley & Jensen and Wellsley Farms: The retailer’s two main private labels. Berkley & Jensen spans products such as OTC remedies and vitamins while Wellsley Farms spans various fresh food items. (See “Private Label.”)
- Media Carts: Often positioned at aisle ends, the carts stock product and contain TV monitors to run related videos.
- BJ's Travel: The program allows members to book vacation packages, flights and hotels through the wholesale retailer.
Thought Starters
- Help the chain continue to develop its growing digital presence and omnichannel offerings.
- Leverage the chain's use of media carts to help deliver your brand's message.
- Provide product on pallets that are approximately one-half to two-thirds the height of a traditional 52-inch pallet to accommodate to the retailer’s space constraints. (See “Merchandising Strategy.”)
- BJ's prides itself as a hybrid between a warehouse club and a supermarket, so consider offering smaller-sized SKUs to attract traditional supermarket shoppers.
Promotional Strategy
Promotional Strategy
BJ's is the only wholesale club that accepts all manufacturer coupons, a point of differentiation that the chain often emphasizes. It also distributes coupons in stores and maintains an "In-Club Coupons" page on Bjs.com, which members can use in addition to manufacturer coupons.
Similar to its channel rivals, sampling is a staple promotional activity at BJ's, as are road show events through which manufacturers set up booths in stores for a limited time to highlight their products.
To attract new members, BJ's occasionally offers free 30-day trials and one-day passes. A large chunk of marketing takes place in the third and fourth quarters, when membership renewals are typically at their peak.
From time to time, BJ's offers fuel discounts to its customers when they reach a specific spending minimum, usually tied to travel-heavy holidays such as July 4.
For 2023, the wholesale club again held its WOW Days, a three-day event running the same time as Amazon's Prime Days. BJ's is offering members savings up to 65% off select electronics, furniture, outdoor living, and kitchen and appliance items.
BJ's also is holding several 2023 holiday savings events with savings in-store and online, including:
- A three-week Early Black FriYAY, running from late October into mid-November,
- A10-day Black Friday savings event (Nov. 17-27), and
- A Black Friday Weekend Savings event (Nov. 23-27), with exclusive limited-time doorbusters.
The Black Friday savings events feature deals on toys, technology, TVs, seasonal decorations, decor and more.
Also in 2023, BJ's released its list of Top Toys, with the majority of its assortment being new for the season, and featuring big brands such as Barbie, LEGO, Nerf, The Super Mario Brothers and more.
In mid-December, it offered members another way to save through its 10 Days of Holideals savings event, with discounts on toys, cookware, and small appliances.
Merchandising
![BJs store](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/bjs-clearwater-fresh-aerial-min.jpg)
Merchandising Strategy
Though it is the smallest of the club chains with only 235 stores, BJ's carries the largest selection of merchandise, offering approximately 7,200 SKUs (compared with 4,000 at Costco). Still, the retailer limits items offered in each product line to fast-selling styles, sizes and colors.
BJ’s groups its merchandise offerings into two divisions: grocery, and general merchandise and services.
- Grocery: consists of meat, produce, dairy, bakery, deli and frozen products, packaged foods (including breakfast foods, salty snacks and candy) and beverages (including juices, water, beer, wine and liquor), detergents, disinfectants, paper products, beauty care, adult and baby care and pet foods. Grocery constituted approximately 84% of its merchandise sales for fiscal year 2020.
- General merchandise and services: consist of optical, small appliances, televisions, electronics, seasonal goods, gift cards, fitness equipment and apparel. This segment constituted approximately 16% of its merchandise sales for fiscal year 2020.
Clubs offer ample fresh foods and produce, a full-service deli, household essentials, pet supplies as well as a selection of local products.
BJ's refers to itself as a hybrid between a supermarket and a wholesale club. In addition to the bulk-sized packaging stocked by warehouse club chains, BJ’s carries some "supermarket-sized" packages, most often of fresh food items, such as dairy, meat, bakery, fish and produce. In fact, the retailer sells 50% more fresh food per member each year than its channel rivals. It also heavily promotes its food offerings, trying to compete more directly with supermarkets.
With fresh being the anchor of BJ’s business, the retailer began a reinvention of its fresh offerings in 2022 to ensure higher-quality, better-value products.
Other recent initiatives that BJ's has made to enhance its merchandising assortment include driving own-brands penetration and simplifying to expand into high-demand categories, including better-for-you snacks, fitness, recreation and seasonal products.
The retailer stocks product on pallets that are approximately one-half to two-thirds the height of a traditional 52-inch pallet to be able to stack a larger variety of product. (See "Displays and Signage.")
In 2023, the club store retailer teamed with Simbe Robotics to bring the tech company's Tally inventory analysis chainwide. Cameras and AI collect real-time data, ensuring products are stocked, shelved correctly and priced accurately.
Displays & Signage
Displays & Signage
BJ's generally accepts more manufacturer-supplied P-O-P materials than its channel rivals Sam's Club and Costco, including pallet displays, stanchion signs, shelf trays, demonstration/sampling kits, neckhangers, take-one dispensers, wall banners and inflatables.
Like other warehouse clubs, the chain strives for a no-frills shopping environment with concrete floors, open-beamed ceilings and metal shelving systems. It makes heavy use of pallets, and back-up inventory generally is stored in steel racks above the sales floor.
Since a typical BJ's store carries more SKUs within a location much smaller than other warehouse club chains, BJ's asks vendors to provide product on pallets that are approximately one-half to two-thirds the height of a traditional 52-inch high pallet. (Most pallets within the warehouse club channel must be 40 inches by 48 inches, with the 40-inch side designed as the selling face.) The shorter pallets allow BJ’s to merchandise a larger variety of product in a small space.
The two primary areas for secondary displays within BJ’s stores are endcaps and the power aisle. The endcap displays often contain media carts that stock products under TVs running related videos. In-aisle video messaging is also occasionally employed.
In-Store Media
In-Store Media
BJ's has a chain-wide TV and radio network operated by San Francisco-based Premier Retail Networks (PRN). BJ's HDTV Network runs digital programming on floor model TVs near the entrance of each store, while BJ's In-Club Radio Network provides an audio broadcast throughout the club.
Media carts at aisle ends also carry TV monitors that run product videos.
Store Formats/Growth
![BJs](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/bjs-clearwater-exterior-min.jpg)
Store Formats/Growth
BJ’s Wholesale Club operates 243 clubs and 174 BJ’s Gas locations, and the company’s store growth strategy has been to open several new stores annually.
In 2023, the retailer opened its first Tennessee location, in a Nashville suburb, and its first Alabama clubhouse, in Madison, bringing its retail footprint to 20 states. It also is entering new markets in 2024, including Knoxville, Tennessee, and Myrtle Beach, South Carolina. It also plans to open new stores in New York and Florida. In early 2025, it plans to open its first Kentucky location, in Louisville, a move which will give the club a presence in 21 states.
In 2022, the retailer opened several clubs, including in new markets like Columbus, Ohio, and Indianapolis; and existing markets, such as Atlanta; Miami and Orlando, Florida; Richmond, Virginia; Detroit and metropolitan New York.
A Warwick, Rhode Island, location that opened in 2022 serves as an innovation lab for the brand. (See BJ’s Market below).
Stores average 113,000 square feet in size, ranging between 63,000 to 163,000 square feet. They carry some 7,200 SKUs. BJ’s locates its larger clubs in high-density locations, and its smaller format clubs serve markets whose population is not sufficient to support a larger club or that are located in an urban area with inadequate real estate space for a larger club. Clubs are located in free-standing locations and shopping centers.
BJ's refers to itself as a hybrid between a supermarket and a wholesale club. Unlike most club warehouse chains, a typical BJ’s store has both express checkout lanes and self-checkout lanes. BJ’s locations are also open longer than other warehouse chains, aligning more with the hours of operation of a typical supermarket.
BJ’s Market
As BJ’s looks at ways to grow new locations, its Warwick club, which opened in 2022, carries a new banner, BJ’s Market, and serves as an innovation center to test new assortments, displays, product demonstrations and convenience initiatives. The small-box pilot is 43,000 square feet and has the potential to become a new expansion format for the retailer. BJ’s Market carries an extensive selection of fresh foods as well as a selection of local products. It has the same pricing and pack sizes as its other club stores.
Special Departments/Services
Special Departments/Services
BJ’s operates a variety of specialty departments that vary by region, including a tire center, bakery and optical center along with a kiosk offering wireless phones and services, such as from Verizon.
The retailer also operates 164 BJ's Gas stations, some of which are located adjacent to clubs and some as stand-alone stations. BJ’s plans to increase its gas station footprint. In 2022 it opened seven stations.
Additional services include:
- Travel,
- Check printing,
- Home improvement,
- Product protection plans,
- Car rental, and
- Propane tank filling.
Tech Advisors
Since 2016, BJ's has offered tech support on all of its electronics with Tech Advisors. Customers contact Tech Advisors through a toll-free hotline who then can help with setting up or troubleshooting with a product. Tech Advisors can also be contacted while shopping and help BJ's customers select an electronic device that best suits their needs.
Home Services
In 2021, the club store retailer partnered with Handy, a platform for booking home service, to offer furniture and television assembly and installation for all members.
Customer Segments
Customer Segments
BJ’s Wholesale Club has approximately 6 million members. According to the retailer, 15-20% of these shoppers have memberships at other warehouse chains.
The retailer typically targets individual consumers rather than small businesses: unlike Costco and Sam's Club, it does not offer a separate business membership. However, it recently launched a B2B sales division.
BJ's positions itself as serving "middle America," with its core member earning $75,000 to $90,000 a year. It refers to its target consumer as "the smart saving family" with a mom and dad who both work and have several children. It tries to accommodate both large and small families by offering products in bulk warehouse-sized packages as well as SKUs of smaller sizes.
Internet Marketing
Internet Marketing Strategy
BJ’s makes full use of its website to sell products from a variety of categories, including apparel, home furniture and decor, appliances, electronics, frozen foods, cakes, toys, office supplies and other products as well as specialty items, such as trampolines and engagement rings.
BJ’s uses its website primarily for e-commerce, grouping products by category, brand and price. Its homepage features a rotating carousel that typically runs ads highlighting savings on particular categories and products such as TVs, cameras, and exercise and fitness equipment.. BJs.com also allows users to:
- Locate a nearby store;
- Create a wish list;
- Browse products and services;
- Shop online;
- Place orders;
- Check an order’s status;
- Access BJ’s “in-club” coupons, which offer savings on private-label and national brand products; and
- Sign up for the chain’s email newsletter.
The website leaves some room for national-brand messaging with brands often earning home page carousel ads with a seasonal theme/message. Brands also earn prominence under category sub-pages..
Within the website, a microsite for BJ’s Travel (travel.bjs.com) lets members book vacation and travel packages.
BJs.com also publishes a Smart Saver Blog, covering recipes, family tips, membership benefits, appliance buying guides and other buying guides.
Berkley Jensen and Wellsley Farm Websites (Berkleyjensen.com and Wellsleyfarms.com)
The retailer debuted dedicated e-commerce sites for its private labels in 2017, the first major warehouse chain to do so. TUsers can search for products by category, place orders online, or reserve items for in-store pickup.
BJ’s Optical Website (Bjsoptical.com)
Dedicated to the chain’s optical department, the site hosts a rotating carousel with ads spotlighting current promotions and national-brand eye-care products. Other components of the website include display advertising for national brands available.
In other digital activity:
- BJ’s distributes an email newsletter about five times a week. Emails typically spotlight products from national brands and private labels and highlight travel incentives and packages from BJ’s Travel. One email each week is also dedicated to a “Deal of the Day,” highlighting a single sale item.
- The retailer often enlists third-party bloggers to plug its private labels and services.
- BJ’s also runs display ads on third-party blogs and local news media websites to promote its national-brand products and membership offers.
Retail Media
![BJs Retail Media](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2023-05/bjsedge.png)
Retail Media
BJ’s Wholesale Club’s retailer media network is BJ’s Media Edge, powered by Microsoft’s PromoteIQ automated vendor marketing platform.
The network gives brands access to first-party data about BJ’s 6.8 million members, which enables them to customize marketing toward those shoppers throughout every stage along the path to purchase.
The interface gives brands a one-stop spot to buy media placement both onsite and offsite, connect with members across high-traffic areas on BJ’s properties and on the open web, and target specific audiences to drive purchasing behavior. Retail media campaigns can also be linked to in-club transactions and online orders.
BJ’s Media Edge also lets brands:
- Reach members seeking inspiration via digital and social media outlets.
- Access real-time analytics and data.
- Run targeted sponsored searches.
- Place sponsored content across the homepage, search and other key search points.
Trends Report
For the past five years, brand marketers were asked to rate various retail media platforms for Path to Purchase Institute’s annual Trends Report. In the magazine's 2024 Trends Report, BJ’s Media Edge scored the best for ROI, with two-thirds of respondents giving it scores of "good" or better. Two-thirds rated its targeting effectiveness as “fair/poor,” however. (See chart below.)
![BJs retail media trends 2024](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2024-01/bjs.png)
Mobile Marketing
Mobile Marketing Strategy
Mobile Application
In 2017, BJ's released a much awaited mobile application, which provided many functionalities that its old mobile app lacked, and has since been downloaded more than 1 million times. Available for iOS and Android devices, the app allows members to shop thousands of products, as well as:
- View BJ's Gas locations and current gas prices.
- Find the closest club location.
- Track year-to-date savings or awards depending on membership level.
- Digitally add retailer and manufacturer coupons to their membership card using the Add-to-Card coupon gallery.
- Receive notifications about the latest offers, events and promotions from BJ's.
- Search, scan and reorder items.
- Create personalized shopping lists for both in-club and BJs.com.
- Check-in for curbside of in-club pickup orders.
- Express Pay. (See below.)
Mobile Website
The retailer updated its mobile-optimized website in 2017 as part of a larger omnichannel push. It nearly duplicates BJs.com. The reformatted site boasts several new functions, including a rotating carousel, a "featured products" category and a link to digital coupons. Consumers can also access new services, such as online bakery and deli ordering r. (See E-commerce section.) Other capabilities allow consumers to:
- Shop online
- Clip coupons
- Browse products and services
- Find a nearby club
- Schedule service appointments
- Purchase, renew and upgrade memberships
- Sign up for the BJ's email newsletter
- Check the status of an online order
The websites for private labels Berkley Jensen and Wellsley Farms are also optimized for mobile and include the same functionalities.
BJ’s Express Pay
BJ’s Express Pay allows members to skip the checkout line by scanning their cart and paying for their purchase through the BJ’s app. (They can also clip digital coupons on the app as they go.) Members then show the code in their app as they leave the store.
Social Media
Social Media Strategy
Facebook: 528K followers (as of May 2022)
The retailer posts updates nearly daily, using Facebook to promote sweepstakes, share company news, engage with customers and link to brand-driven recipes on its "Stocked" member journal. Updates also periodically spotlight products from national brands and private labels Wellsley Farms and Berkley Jensen.
Applets show the retailer's Pinterest, Twitter, Instagram and YouTube pages.
Twitter: 22.5K followers (as of May 2022)
The retailer uses Twitter to promote products found in store and online from national and private label brands along with promotions and awards. It tweets several times a month. Some tweets also share information on sweepstakes and company news.
Instagram: 84.6K followers (as of May 2022)
BJ's joined Instagram in late 2015 and has used the platform to share short videos and photos of shoppers. Posts also announce sweepstakes, celebrate holidays and occasionally plug new products. The account also promotes national brands, exclusive offerings as well as private label products. Many posts mirror Facebook updates.
Pinterest: 6K followers (as of May 2022)
The chain mostly uses Pinterest to share recipes (via national brand websites and blogs) or highlight products available in stores or Bjs.com, often linking to the item's e-commerce page. Boards use seasonal themes such as "Get Ready For the Big Game!" and “Back to School Inspiration" or spotlight a specific category or trend such as "Baby Essentials" and "Healthy Living." BJs also uses Pinterest to heavily promote BJ’s Travel’s trips and car rentals.
YouTube: 3.68K subscribers (as of May 2022)
The channel primarily contains videos that highlight a specific product, services
E-Commerce
E-Commerce Strategy
BJ’s hit the $1 billion mark in e-commerce sales for the 2021 fiscal year, comprising almost 8% of its total business. Digital sales rose 22% in 2021 and were up more than 250% on a two-year stack.
Approximately 80% of its digitally enabled sales are fulfilled by clubs with services, such as Buy Online, Pickup in Club, curbside, ship to home and same-day delivery. Use of these services had increased about 45% in 2021 over the year prior. BJ’s members that make digital purchases are younger, visit clubs more often and purchase larger baskets.
While BJ’s offers multiple delivery services, in 2022 the retailer began offering same-day delivery driven by BJs.com. Under this model, BJ’s employees pick orders and its delivery partners make deliveries to its members.
In 2024, BJ's expanded its same-day delivery options to include big-ticket items such as outdoor furniture, grills, televisions and more. Roadie, a UPS company, is making deliveries to BJ's members in participating zip codes.
The retailer also operates dedicated e-commerce websites for its private labels Berkley Jensen and Wellsley Farms, which allows shoppers to research products and place orders for nonperishables online. (See "Internet Marketing" and "Private Label" sections for more.)
Nextuple Partnership
BJ's is partnering with omnichannel fulfillment provider Nextuple's OMS Studio inventory service to replace its current software-as-a-service solutions. Nextuple's mix-and-match microservices can work independently or together to create more flexible fulfillment options.
Same-Day Select
In 2022, the retailer launched membership add-on “Same-Day Select: Unlimited” priced at $100 for 12 months, along with “Same-Day Select: Multipack,” which offers 12 free same-day deliveries during a year’s time for $55. Same-Day Select delivery of select eligible items is available in select zip codes, and groceries are delivered in as little as 2 hours with a minimum purchase of $60. Same-Day Select delivery orders are fulfilled by a third-party shopping and home delivery vendor, who accepts tips. BJ’s previously tested this service and reported positive response from members.
Same-Day Delivery
BJ’s offers same-day delivery in as little as 2 hours in select zip codes.
Curbside Pickup and Pickup in Club
Members can buy online and pickup orders curbside or in-club for free in as little as 2 hours. Shoppers have the ability to add digital coupons to online orders that are automatically redeemed at checkout, which shoppers can now choose to complete via the website or mobile application before picking up orders in-club.
Delivery
Members get a $8.99 flat rate when they purchase three or more eligible products.
Pickup
BJ’s offers same-day delivery through Pickup, Dallas.
DoorDash
In 2022, BJ’s began offering same-day delivery through DoorDash and as a last-mile courier for orders made through BJ’s e-commerce platforms through DoorDash Drive, its white-label fulfillment platform that offers direct delivery for any business. The service is available from all BJ’s locations for members and non-member alike, but members have the benefit of linking a wholesale club card on the DoorDash app to receive lower member-only pricing.
Instacart
BJ’s has partnered with Instacart for same-day grocery delivery in as little as 2 hours from all clubs and for orders made through BJ’s e-commerce platforms since 2018.
SNAP EBT
In 2022, BJ's stores began accepting Supplemental Nutrition Assistance Program (SNAP) benefits chainwide, including on BJs.com and on its app.
Circulars
Circulars and Publications
BJ's does not distribute a traditional circular. Instead, the retailer sends out monthly member mailers similar to channel rival Costco containing various coupons and highlighting online-only offers.
BJ's also has produced special circulars that tie in to an upcoming holiday and regularly sends direct-mail pieces to members (usually with a theme such as flu season or upcoming events such as "Black Friday").
Loyalty Programs
Loyalty Programs
In 2023, BJ's membership reached 7 million, and membership fee income increased 6% from 2022's $396.7 million to 2023's $420.7 million. The warehouse club continues to see gains in high-tier members. BJ's overall membership renewal rate is high, at 90%.
BJ's offers three types of memberships:
- Inner Circle
- Business
- The Club+ Card (replacing the BJ’s Perks Rewards membership plan)
Business and Inner Circle members pay a $55 fee annually. Both membership tiers allow for a second cardholder and three supplemental memberships (eight for business card holders) each for a $30 annual fee.
The Club+ Card membership costs $110 per year. Club+ Card members receive 2% back on qualifying purchases in store and BJs.com, save 5 cents a gallon at BJ’s gas, and get access to exclusive events throughout the year and BJ’s Travel benefits.
Credit Cards
In 2023, BJ’s unveiled a new program with Capital One and Mastercard, with a rewards component.
The BJ’s One+ MasterCard grants 5% back on most BJ’s purchases and 15 cents off per gallon at BJ’s Gas. The BJ’s One MasterCard lets cardholders earn 3% back on BJ’s purchases and 10 cents off at the pump. (During special savings events, cardholders can earn double rewards.)
Rewards accrue outside of BJ’s warehouses, too. BJ’s One+ Mastercard customers earn 2% back in rewards, while BJ’s One Mastercard cardholders earn 1.5% back. Members can use their rewards in $10 increments.
Additionally, the BJ’s Business Elite Mastercard grants cardholders 15 cents off a gallon at BJ’s Gas, 5% back on qualifying BJ’s purchases, and 2% in rewards where Mastercard is accepted.
Rewards do not expire so long as the cardholder remains a BJ’s member.
Private Label
Private Label
More BJ’s members are putting its own brands in their cart, led by perishable and sundry items. BJ’s plans to increase focus on its brands and accelerate its steady improvements as it finds that members, who shop private label brands, are among its most valuable. In 2023, its two private label brands represented approximately $4.1 billion in sales and accounted for more than 25% of its total sales. BJ's feels confident it will reach its goal of 30% in the coming years.
BJ’s consolidated its private label portfolio in 2015 from 13 brands to two: Wellsley Farms and Berkley Jensen. Together, the brands span a wide variety of food and non-food product, including:
- Berkley Jensen: Vitamins, OTC items, aluminum foil, trash bags, napkins, bath, tissue, baby wipes, detergent, patio furniture, luggage, seasonal items, mattresses, apparel, batteries, lawn care products and pet care.
- Wellsley Farms: Premium fresh foods, including dairy products, produce, and fresh heat-and-eat meals, frozen vegetables, coffee, nonalcoholic beverages, packaged snacks and canned food.
The product packaging and labeling on the brands was revamped by New York-based branding agency CBX the same year of the consolidation, in order to provide the brands with a more impactful identity on the shelf. After initially expanding the two lines by 10% in 2016, the retailer introduced even more private label SKUs including organic food options and home furnishings to stores. BJ's also launched dedicated e-commerce websites for each private label in 2017, which allows shoppers to research products. (See "Internet Marketing" section of profile for more.) BJ's also rolled out a "Compare then Save" campaign that pits its private label prices against national brands. Following the consolidation, brand sales went up by 10%.
Berkley Jensen and Wellsley Farms are featured prominently in the retailer's promotions, supported by emails, social media updates and influencer outreach online, as well as sampling events in stores.
Cause/Community Programs
Cause and Community Programs
Through the BJ’s Charitable Foundation, BJ's makes monetary donations to local community organizations that focus on hunger prevention, homelessness, health care and education. Since its 2005 inception, the Foundation has contributed roughly $19 million to more than 2,200 community organizations in the states where the retailer operates.
About $2.3 million of the Foundation's contributions to date have gone toward charities supporting breast cancer research. The Foundation also supports hunger relief through a national partnership with Feeding America in which the retailer provides storage, pickup and distribution capabilities for food banks across its operating footprint. It also provides food banks with unsold food from its stores through the BJ's "Feeding Communities" program. In 2017, the Foundation made a $1 million donation to the Feeding America, the largest in the Foundation's history, a commitment it's repeated, including in 2023.
In addition to the monetary support offered through the Foundation, each store is given an annual donation budget, which it can allocate at its discretion to local nonprofits that primarily benefit children and families.
BJ's also offers financial assistance to employees experiencing hardships through the company's Aisle Help Fund. Launched in 2013, the nonprofit group generates funding through employee donations.
Advertising Strategy
Advertising Strategy
Tagline: “Absurdly Simple Savings" (as of 2023)
BJ's launched a new campaign that focuses on its ongoing "Absurdly Simple Savings" platform. The ads, which are running nationwide online and on television, target budget-conscious shoppers as the warehouse club puts a humorous spin on how easy it is to save up to 25% off grocery store prices. The spots also tout its "everyday low gas prices."
BJ's also is running a dozen digital-only shorts that parody local news reports, touting the newsworthiness of its savings.
Primary Media: TV, radio, online ads, opt-in emails, FSIs, run-of-press ads
BJ's primary advertising objective is to recruit new members by highlighting the retailer's freshly prepared foods, savings on national brand products and periodic 60-day free trial membership.
The company focuses on increasing customer awareness primarily through social media, direct mail, public relations, community involvement (via BJ’s Charitable Foundation), new-club marketing programs and publications sent to members periodically throughout the year. Dedicated marketing personnel also focus on soliciting potential business members in the community. These methods result in lower marketing costs compared to typical retailers.
Regionally, BJ's uses TV and radio spots to highlight name brand items available at the chain and the retailer's prepared food offerings, such as cooked meats and side dishes.
Elsewhere, online display ads on blogs and various websites typically highlight trial memberships and name brand items. Ads are also available in Spanish to accommodate Spanish-language websites, such as Univision.com.
The retailer also regularly produces FSIs promoting its free trial memberships as well as name brand items from manufactures such as Unilever, Procter & Gamble and Kellogg.
Solution Providers
Solution Providers
- POP materials: TPH Global Solutions, Chicago
- Advertising: Connelly Partners, Boston
- Branding: Terri & Sandy, New York
- Pricing Optimization: Revionics, Austin, Texas
- Merchandising Analytics: First Insight, Warrendale, Pennsylvania
- Consumer Insights: IRI, Chicago
- Omnichannel fulfillment: Nextuple, Andover, Massachusetts
Sponsorships
Sponsorships
Not since 2018 has BJ's teamed up with a professional sports team. That year the retailer acted as an official partner of the New York Yankees, the Boston Red Sox and the Salem Red Sox for the season for the first time in the company's history.
Historically, the retailer does not sponsor any professional sports organizations or teams, instead focusing its efforts on sponsoring charitable organizations at the local level. (See “Cause/Community Programs.”)
Marketing Expenditures
Marketing Expenditures
At BJ’s, advertising expenses were approximately 0.6%, 0.6%, 0.5%, 0.6%, 0.6% and 0.7% of net sales in 2023, 2022, 2021, 2020, 2019 and 2018, respectively. Advertising costs generally consist of efforts to acquire new members and typically include media advertising (some of which is vendor-funded). BJ’s expenses advertising as incurred as a component of selling, general and administrative (SG&A).
![BJs logo](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/bjs_logo.png)
BJ's Wholesale Club Promotional Calendar
A roundup of seasonal promotions.
January
- New Year: Social media activity highlights self-care and well-being essentials.
- Super Bowl: Gears up for the big event with savings on game-day snacks and supporting in-store and digital activity.
- Back to School: Teams with General Mills for a post-holiday program promoting the manufacturer's Box Tops for Education cause platform.
- Winter: Social media promotes winter storm necessities such as shovels, ice melt pellets, snow blowers and more.
February
- Spring: Begins celebrating the change of seasons through email blasts employing messages such as "In Full Spring" and linking to seasonal content on bjs.com.
- Valentine's Day: Spotlights gift ideas and relevant products on bjs.com supported by social media updates.
- Spring Cleaning: Digital marketing touts cleaning supplies, from private label and national brands.
- Super Bowl
- Galentine's Day
March
- Easter: Assortments of candy and seasonal goods are merchandised on shelves and pallet displays in stores. Digital marketing and social media activity highlights relevant savings and items.
- Frozen Food Month: Digital activity, social media updates and features within the retailer's member journal highlight relevant products. Plus, in-store events typically demonstrate recipes incorporating frozen items.
- Lawn & Garden: Gardening tools and patio furniture earn secondary merchandising on pallet displays in stores. Email blasts support.
- March Madness: Custom P-O-P materials and digital activity supporting a "Slam Dunk Savings" event.
- Spring Cleaning
- Spring
April
- Summer: Summer essentials such as charcoal and grilling seasonings and products from national brands including Coppertone get the spotlight in stores while digital activity focuses on related content.
- Earth Day: In 2023, social media activity promoted gardening needs, focusing on brands such as Scotts Miracle-Gro.
- Easter
May
- Mother's Day: Digital promotion centering around jewelry, fragrances and floral arrangements.
- Graduation: In-store signage and online activity highlights deli platters and cakes for parties.
- Pet Month: Social media activity highlights treats, toys and more.
- Summer
June
- Father's Day: Digital activity spotlights home appliances, grilling items and personal care products for dads.
- 4th of July: Social media activity touts entertainment and outdoor cooking essentials.
- Summer
July
- 4th of July: Spotlights grilling and outdoor cooking necessities via email blasts and social media activity.
- WOW Days: A three-day savings event for members, with discounts on electronics, furniture, kitchen and appliances.
- Back to School: Begins to highlight back-to-school necessities for parents, college students and teachers in stores and via multiple email newsletters as well as through social media activity.
- Summer
August
- Back to School
September
- Fall: Social media promotes seasonal decor, entertaining options, fall flavors and Halloween treats, costumes and decorations.
- Back to School
October
- Breast Cancer Awareness: Runs a "Power of Pink" campaign, usually involving in-store demonstrations and product sampling from partnering national brands.
- Wow Days: Four days of savings across several categories, with a focus on TVs, technology, toys, video games, seasonal decor, furniture and more.
- Halloween: Confectionery and decorations are promoted in stores. Email blasts tout "Spooky Savings" on candy and Halloween-r elated products.
- Early Black FriYAY: For 2023, a three-week event running into mid-November with early holiday shopping deals on toys, technology, home decor, seasonal decorations, and other gifts.
November
- Holiday: Offers a wide variety of toys and giftables; distributes a seasonal catalog that spotlights SKUs from manufacturers such as Mattel Inc; digital activity supports.
- Black Friday/Cyber Week: Email blasts tout week-long Black Friday and Cyber Week savings.
- Thanksgiving: Email blasts spotlight prepared foods and bakery items.
- Early Black FriYAY
December
- Holiday: Entertaining essentials and deals on gifts.
- New Year's: Social media activity touts appetizers, snacks and other party essentials.