Bryan Wassel
3 min read
In This Article:
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BJ’s Wholesale Club is working to bring more than half of its customers into its higher tier Club+ memberships to increase loyalty, according to executives on a Q1 2025 earnings call Thursday. Higher tier members spend more and are more likely to renew than others.
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Share of higher tier membership was up 1% year over year in the quarter, topping 40% for the first time, according to President and CEO Bob Eddy. “Our momentum in membership is a direct reflection of the unbeatable shopping experience we provide at BJ’s,” he said during the call.
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Digital experiences are playing an important role in growth as well. Digitally enabled comparable sales were up 35% year over year, driven by express curbside pickup and same-day delivery options, according to Eddy.
BJ’s is willing to sacrifice some of its profit margin for better e-commerce experiences on the grounds that greater customer loyalty can make up the difference.
Digital orders accounted for more than 50% of sales in the first quarter of 2025, which is a sign that the warehouse club’s in-store pickup, curbside pickup and same-day delivery efforts are working, according to Eddy. The upsides of convenience outweigh the potential downsides, he added.
“They can cost a little bit more because our team members are doing the picking for our members, and even in the case of curbside putting it in their basket or their car,” Eddy said. “But member shopping behavior tends to increase the more engaged people get in these digital conveniences, and so that incrementality tends to pay the bill for the increased cost.”
BJ’s is also investing in technology to reduce the monetary and time costs of store-based fulfillment, according to Eddy. The warehouse club is using autonomous inventory robots and AI to generate efficient order batch and pick routes, which reduced the time associates spend collecting items by more than 45%.
Technology is improving the in-store experience as well, according to Eddy. The express pay option, which lets shoppers check out with their phones, is a small part of the business but growing every day.
BJ’s investments paid off with a strong quarter. Same-store sales, excluding gasoline, were up 3.9% year over year, according to a company earnings release. Net sales were up 4.7% year over year to over $5 billion, while membership fee income grew 8.1% year over year to $120.4 million.
