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BJ's Wholesale Club (BJ) on Track With Store Expansion Efforts

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BJ's Wholesale Club Holdings, Inc. BJ is all set to open its new club located at Seabrook, N.H., on Jul 2. This marks the company’s 222nd club location that will feature a vast selection of fresh food offerings, deli-services, household essentials, pet supplies and more. With rising penetration of online shopping, brick-and-mortar stores have evolved into important providers of last-mile delivery needs as well as other omni-channel services such as curbside pickups. Besides, BJ's Wholesale Club provides prudent membership programs that help members generate greater savings. That said, let’s take a look at the benefits offered at the new club as well as certain other efforts of the company to boost customers’ shopping experience.

Prudent Club Expansion Efforts

BJ's Wholesale Club has been active when it comes to store expansions. In its last earnings call, the company highlighted that it plans to open roughly six new clubs in fiscal 2021, most of which will be located in the eastern part of the United States. The new clubs will feature an extensive assortment of fresh foods and household essentials. Moreover, the clubs will offer convenient delivery and pickup services as well as exciting offers. In fact, it is worth noting that a significant portion of the company’s digital sales are being fulfilled through clubs, hence making club expansions a prudent growth strategy.

In addition to a wide range of food products, the New Hampshire club will provide seasonal items, home decor, fashion for the family, toys, hot tech as well as a selection of local products. The new club will also offer the treasure-hunt experience that the company’s members have long been enjoying.

For attracting local shoppers, the new club is providing a limited-time Founding Member offer. Consumers interested in joining the club can avail this offer until Jul 2. Additionally, local shoppers can also sign up for a one-year BJ’s Inner Circle membership along with BJ’s Easy Renewal for $25. They can also avail a one-year BJ’s Perks Rewards membership with BJ’s Easy Renewal for $65. Under these member programs, exclusively available for the Seabrook club, customer will be provided valuable coupons worth $75.

Moreover, BJ’s Perks Rewards members can earn 2% cash back on most purchases. In fact, members can save up to 25% on grocery store prices. Customers can also redeem manufacturer’s coupons, which can be stacked with BJ’s coupons.

Apart from these, BJ’s Wholesale Club is looking to fill a number of employment positions for its new Seabrook location. The company is offering a $2,500 sign-on bonus along with on-the-spot interviews and job offers.

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Efforts to Boost Shopping experience

BJ's Wholesale Club is undertaking every effort to bolster omni-channel operations and ramp up delivery services. The company has been directing resources toward expanding digital capabilities in order to better engage with customers. Members shopping online can choose free curbside pickup from a nearby club or ship-to-home. In certain locations, members can avail same-day delivery for their orders. Management believes that digitally engaged members have higher average baskets and make more trips per year than members who shop in-club only.

Also, BJ's Wholesale holds a three-year exclusive agreement with CommerceHub, a leading e-commerce platform that allows online order fulfillment and delivery solutions. The company’s partnership with Citizens Pay for providing online financing solutions for large purchases is also encouraging. In certain club locations, shoppers can utilize their EBT card for SNAP qualified items during checkout, when they shop on BJs.com for in-club pickup or contactless curbside pickup.

In addition to these, BJ's Wholesale Club focuses on simplifying assortments, boosting marketing and merchandising capabilities, expanding into high-demand categories as well as building own-brands portfolio. The company is undertaking every effort to boost membership signups and renewals, which will drive the top line.

Impressively, shares of this Zacks Rank #3 (Hold) company have climbed 7.1% in the past three months compared with the industry’s decline of 1.7%.

3 Retail Stocks to Consider

Target Corporation TGT, sporting a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 13.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores, Inc. BURL has a trailing four-quarter earnings surprise of 74.7%, on average. The stock sports a Zacks Rank #1.

Costco Wholesale Corporation COST has a long-term earnings growth rate of 9.1%. It presently carries a Zacks Rank #2 (Buy).

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