BJ's Wholesale Club Holdings, Inc. (BJ) Business Profile

What it does

BJ’s Wholesale Club operates membership warehouse clubs, primarily in the eastern United States. Its warehouse club business began in New England in 1984. Robert W. Eddy is chairman, president and chief executive officer.

Members pay an annual fee for access to clubs that sell groceries, fresh food, household products, general merchandise and gasoline. The assortment ranges from meat, produce and packaged food to electronics, apparel, furniture and tires. BJ’s also offers services such as optical care, travel and tire installation, some through outside operators.

The company sells national brands alongside its own Wellsley Farms and Berkley Jensen products. It accepts manufacturer coupons and offers its own promotions. BJ’s says it offers up to 25% savings on a representative basket of manufacturer-branded groceries compared with traditional supermarkets.

As of January 31, 2026, BJ’s operated 263 clubs and 199 gas stations. Members can shop in person or use the website and mobile app for pickup, delivery and shipping. The app also provides digital coupons and ExpressPay, which lets members pay on their mobile devices while shopping in a club. Individuals and businesses can both join.

How it makes money

BJ’s has one operating segment. It earns revenue primarily by selling merchandise and gasoline, and also collects annual membership fees. For the year ended January 31, 2026, revenue in its reportable segment was $21.5 billion; net sales in the second quarter of fiscal 2026 were $6.1 billion.

Membership provides recurring fee income and access to shopping across clubs, the website, the app and gas stations. A standard Club membership generally costs $60 a year, while Club+ generally costs $120. Club+ offers cash back on qualified purchases, a gasoline discount and free same-day deliveries, subject to program limits. BJ’s co-branded credit cards offer additional cash-back and gasoline benefits.

BJ’s limits the selection within product lines to items intended to sell quickly. Its perishables, grocery and sundries division includes food, beverages, household goods, beauty care and pet food. General merchandise and services include items such as electronics, apparel and furniture. Wellsley Farms and Berkley Jensen products accounted for approximately 27% of net sales excluding gasoline in fiscal year 2025; BJ’s says these products generally earn higher margins than comparable national brands.

The company generally prices gasoline below the average retail price in each market. It also operates BJ’s Media Edge, an advertising program through which brands can reach its members. In the second quarter of fiscal 2026, membership fee income grew 9.9% to $136 million. BJ’s expects membership fee income growth to moderate during the year as the effect of the prior year’s fee increase normalizes.

Customers and how it sells

BJ’s serves individual households and businesses. Its target customers include price-sensitive shoppers with large households who use warehouse clubs for family needs. The company had more than 8 million paid memberships as of January 31, 2026 and reached 8.5 million members in the second quarter of fiscal 2026.

At January 31, 2026, its 263 clubs spanned 21 states. New York had 50 clubs and Florida had 43. BJ’s has no significant sales outside the United States, and no customer represented more than 10% of total revenues for any period presented.

Members can purchase in clubs, on bjs.com or through the BJ’s app. Fulfillment options include buy-online-pickup-in-club, curbside delivery, same-day delivery and ship-to-home. BJ’s also offers shopping through the DoorDash and Instacart marketplaces.

Club+ and co-branded Mastercard members accounted for 42% of members and 52% of merchandise spend, excluding gas and membership fee income, in fiscal year 2025. The tenured membership renewal rate was 90% at the end of that fiscal year.

Suppliers and costs

BJ’s procures most merchandise directly from manufacturers and sends it either to distribution centers or directly to clubs. Company-operated distribution centers receive large shipments and generally send goods to individual clubs within 24 hours. Merchandise is commonly displayed on pallets, with backup stock above the sales floor, reducing handling and restocking labor.

The company does not directly manufacture goods. It relies on suppliers and contract manufacturers, including makers of private-label products, to meet applicable product requirements. BJ’s sources merchandise from domestic and international vendors; a disruption at a significant vendor, particularly one supplying high-demand products with limited alternatives, can affect sales.

Cost of sales consists mainly of merchandise and gasoline, distribution-center expenses and freight, offset by vendor allowances, rebates and cash discounts. Other operating costs include employee pay and benefits, rent and other occupancy costs, depreciation, advertising and payment-card fees. Cost of sales was $17.46 billion in fiscal year 2025. BJ’s says its pricing leaves a smaller difference between purchase and selling prices on many items than at non-club competitors, making purchase-price changes consequential for operating profit.

Competitive position

BJ’s competes with other warehouse clubs as well as supermarkets, supercenters, online retailers, general merchandise chains, specialty stores and gasoline stations. Its named warehouse-club competitors are Costco Wholesale Corporation and Sam’s Club, a division of Wal-Mart Stores, Inc. Both operate internationally and have greater financial and marketing resources than BJ’s.

BJ’s identifies price as the major competitive factor in its markets. Location, merchandise selection, member services and name recognition also matter. Members can compare prices through digital channels, while BJ’s offers pickup, delivery, digital coupons and mobile checkout alongside its physical clubs.

The company says it operates nearly three times the number of clubs as the next largest warehouse-club competitor in New England. It also buys much of its merchandise directly from manufacturers, limits its assortment and uses pallet displays to reduce handling. Paid memberships provide fee income and give members access to prices and services.

Our reading: BJ’s New England footprint is a meaningful local advantage, although it does not establish the same position across all of its markets. Our reading: Memberships and the low-handling warehouse format support customer retention and pricing, but the larger resources of its named club competitors limit the protection those features provide. Our reading: Private-label products add differentiation, though members can also compare them with national brands sold elsewhere.

Growth opportunities

BJ’s growth plans include opening clubs and gas stations, increasing membership, developing its private-label assortment and investing in digital shopping and distribution. The company has expanded both large-format clubs and smaller formats designed for markets or locations that may not support a large club.

In fiscal year 2025, net sales rose 4.6% to $20.96 billion. The increase was driven primarily by traffic and unit growth, particularly in perishables, grocery and sundries, and a net increase of thirteen clubs and gas stations. A lower average retail gasoline price partly offset the increase. Merchandise comparable club sales rose 2.6% in that year.

BJ’s expects to continue increasing the sales penetration of its private-label products. It has also invested in its perishable supply chain, distribution and transportation systems, and shopping options such as pickup, same-day delivery and ExpressPay.

In the second quarter of fiscal 2026, merchandise comparable sales increased 3.1%, while membership fee income grew 9.9% to $136 million. BJ’s maintained its full-year expectation for 2% to 3% comparable club sales growth excluding gasoline. It also said sales, membership, margin dollars and the bottom line were ahead of its expectations for the quarter.

Structural risks

• Membership and spending: Profitability depends on attracting members and maintaining renewals. Reduced shopping frequency or spending, dissatisfaction with prices or assortment, and competition can hurt both sales and membership fee income. Economic pressure can also cause members to spend less or shift spending.
• Merchandise costs and supply: BJ’s often cannot pass higher purchase costs fully to members. Small changes in merchandise purchase prices can therefore substantially affect operating profit. Vendor disruptions or insufficient stock can also reduce sales and member satisfaction.
• Competition: Other warehouse clubs and retailers compete on price, selection, location, service and convenience. Some have greater financial and marketing resources, and BJ’s inability to respond could lead to lost sales or higher operating costs.
• Gasoline and sales mix: Gasoline prices can substantially change net sales even when unit sales and profit per gallon are largely unchanged. Gasoline has lower margins than the rest of the business, so a greater gasoline sales mix can reduce the overall gross margin rate.
• Operations and security: Distribution interruptions, extreme weather and technology failures can delay merchandise or disrupt clubs. Security breaches involving BJ’s or outside vendors could expose personal information and damage member relationships.
• Regional exposure and product safety: The New York metropolitan area accounted for 23% of net sales in fiscal year 2025. Product contamination, safety failures or recalls could also bring costs, lost sales and reputational harm.

Bottom line

Our reading

BJ’s combines recurring membership fees with a high-volume merchandise and gasoline business, using a limited assortment, direct purchasing and warehouse-style handling to support its pricing. Its New England presence and membership base provide a foundation for expansion, but larger warehouse-club rivals compete for the same shoppers. The model depends on retaining members while managing thin merchandise markups, supplier costs and volatile fuel prices.