With consumers increasingly resorting to digital transactions, BJ's Wholesale Club Holdings, Inc. BJ continues to focus on strengthening its omni-channel offerings and rolling out new digital services. Progressing along these lines, the company entered into a three-year exclusive agreement with CommerceHub, a leading e-commerce platform that enables online order fulfillment and delivery solutions. Also, the company entered into a partnership with Citizens Pay for providing customers with improved online financing solutions for large purchases.
Investors have reacted positively to these developments, as shares of the company rose nearly 7% during the trading session on Jan 27. Markedly, this Zacks Rank #3 (Hold) company’s shares have surged 18.1% in the past three months compared with the industry’s rise of 10.6%.
Efforts to Strengthen Digital services Looks Prudent
As online order volumes continue rising, it becomes essential to ensure proper execution of fulfillment and delivery operations. This ensures continued supply chain movement alongside enhancing customers’ shopping experience. BJ's Wholesale partnered with CommerceHub in order to meet such targets.
Markedly, CommerceHub’s superior expertise in online order delivery fulfillment and execution will help bolster BJ's Wholesale’s drop-ship network and expand its online business. We note that BJ's Wholesale is committed toward bolstering its delivery services. In this context, the company has put in place facilities such as curbside pickup, buy online pick-up in club, same-day delivery and more. Additionally, the company is boosting website and mobile application features along with providing digital coupons.
In a separate release, the company announced its partnership with Citizens Pay. With online shopping gaining prominence, customers look for simple and affordable payment solutions, especially in case of large purchases. BJ's Wholesale’s collaboration with Citizens Pay is intended to fulfill such needs.
The flexible and convenient financing solutions offered by Citizens Pay are likely to help BJ's Wholesale’s members in making large ticket purchases alongside everyday items. With such point-of-sale financing facility, members will be able buy items like televisions, appliances, bedroom set and home furnishings with low monthly installments. The facility enables shoppers to buy items through a virtual line of credit, which can be used for repeat purchases without a new credit application or multiple loans. This is likely to boost BJ's Wholesale’s online sales and average order value.
The company will launch the Citizens Pay facility during the first quarter this year, for orders placed on BJs.com for delivery and with buy online, pick up in-club or curbside pickup. During the second quarter, the company will expand the Citizens Pay facility to include financing for in-club purchases with the BJ’s Mobile App.
Clearly, BJ's Wholesale is undertaking every effort to enhance customer’s online shopping experience. Such efforts are expected to keep fueling the company’s online sales. Additionally, the company also focuses on simplifying assortments, expanding into high-demand categories and building own-brands portfolio. Cumulatively, these endeavors have been contributing to growth in membership signups and renewals. That said, the company is well poised to continue with its growth momentum in the forthcoming periods.
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