BJ’s Wholesale Club reveals digital transformation achievements

BJ’s Wholesale Club said its revenue rose 4 percent to $4.807 billion in the first quarter of 2024, driven by a 21 percent increase in digital sales.
Anjana Harve, chief information officer (CIO) of BJ’s Wholesale Club, leads digital transformation projects.

Anjana Harve is responsible for strategic leadership and direction of the company’s IT organization to achieve business results, optimize revenue growth and improve operational efficiency.

BJ’s digital transformation programs are supported by Monika Schwartz, who has served as BJ’s executive vice president and chief digital officer since October 2021. Monica Schwartz is responsible for executing the company’s vision and strategy for its e-commerce and omnichannel operations.

BJ’s Wholesale Club invests to support initiatives related to membership, merchandising, digital and real estate. BJ’s selling, general and administrative expenses increased 5.8 percent to $2.8 billion in fiscal 2023 from $2.7 billion in fiscal 2022. BJ’s does not disclose specific investments in digital transformation projects.

In fiscal year 2023, digital sales grew by 20 percent. Digital sales accounted for 11 percent of its business. Notably, digital product sales have increased sevenfold since fiscal year 2018. BJ’s portfolio includes BJs.com, BerkleyJensen.com, Wellsleyfarms.com, as well as the BJ mobile app.

Shopping experiences

BJ’s Wholesale Club says the shopping experience keeps members coming back to the store, deepening loyalty and increasing renewal rates. BJ’s Wholesale Club improved member experience through merchandising; digital and club facilities.

Digital conveniences allow shoppers to shop at clubs the way they want. Convenience initiatives include buy online and pick up at the club; curbside pickup; and same day delivery. Club shoppers can also access the digital coupon gallery and skip the lines by using ExpressPay.

Marlborough, Mass.-based BJ’s Wholesale Club says its digital product sales have seen double-digit growth every quarter over the past two years. Sales of digital devices increased by 21% in the first quarter. This month, BJ’s Wholesale Club will introduce the ability to locate products via the app, making shopping at the 100,000-square-foot club even easier.

BJ’s Wholesale Club, which operates 238 clubs and 168 BJ’s gas locations in 19 states, uses autonomous inventory robots to increase labor efficiency in its digital order fulfillment process. BJ’s Wholesale Club will leverage more digital capabilities to provide greater value and convenience to members in the future.

BJ’s Wholesale Club says about 90 percent of digital sales are made by clubs offering services such as buy online, pick up at the club and same-day delivery, driving digital growth. Members who use digital conveniences save time on shopping and become more loyal members.

The number of members is growing

As of February 3, 2024, BJ’s has over 7 million paid memberships.

Membership numbers grew both year-over-year and sequentially, reaching a renewal rate of 90%. BJ’s Wholesale Club is expanding membership in both new and existing markets, with digital platforms accounting for almost half of that growth. Membership fee income, or MFI, rose 8.6% to about $111.4 million in the first quarter.

BJ’s Wholesale Club disclosed that its top-tier member base consists of One+ members who pay a $110 fee and have a co-branded credit card. This level increased by double digits, driving senior membership penetration to over 38 percent in the first quarter. The BJ Wholesale Club recorded an increase in income from membership fees by 8.6%.

“We have delivered significant growth in membership, traffic and unit numbers. This resulted in increased revenues and increased market share in our clubs and gas stations. Our merchandising and digital enhancements, based on delivering compelling value, are generating strong interest from our members,” Bob Eddy, president and CEO of BJ’s Wholesale Club, said in his earnings report.

Baburajan Kizhakedath