Push into Michigan to continue with unit in Chesterfield
WESTBOROUGH, Mass. — BJ’s Wholesale Club Holdings Inc. reported Thursday that net sales for its fiscal second quarter were up 1.1% versus the comparable prior year period, reaching $3.3 billion. Comparable club sales (excluding gasoline sales) increased 1.6% for the 13-week period that ended August 3, and the company had income from continuing operations of $54.3 million for the period, compared to a loss from continuing operations of $5.5 million in the second quarter of fiscal 2018.
“Second quarter results for sales and earnings were in line with our expectations,” BJ’s chairman and chief executive officer Christopher Baldwin said in a statement. “We delivered improved margins and continued to grow earnings as we executed against our strategic priorities. Our sales were particularly strong in the second half of the quarter as weather improved, and we ended with strong momentum. We are confident that we will deliver on our full-year expectations as we continue to transform BJ’s Wholesale Club.”
New clubs are part of the growth plan. The company said that it plans to open two new clubs and BJ’s Gas locations in early 2020. One will be in Pensacola, Fla. and the other will be in Chesterfield, Mich.
“We see great potential in these markets and look forward to delivering outstanding value and savings to hardworking families in both communities,” Baldwin said. “Millions of members love us for the value, convenience and exciting assortment we offer our members every day and we’re excited to bring our fresh approach to both Pensacola and Chesterfield.”
The Chesterfield store will be the company’s third location in Michigan as it continues to expand its territory. Last year BJ’s announced plans to expand into Michigan with two new locations. The clubs, located in Taylor and Madison Heights, are on track to open this fall, in time for the holiday season.
The new club in Pensacola, Fla. will be BJ’s 33rd location in that state.
The company said that both new clubs will feature an extensive selection of fresh foods, a full-service deli and such household essentials as paper products, cleaning products, diapers and pet supplies. The chain also prides itself on providing members with a treasure-hunt experience with deals on fashionable family apparel, seasonal items, toys, technology and local goods. In its marketing pitch to consumers, BJ’s contends that it offers prices that beat those at supermarkets by about 25%. Compared to other membership club operators, meanwhile, BJ’s says it has a wider assortment of fresh food items and also accepts all manufacturers’ coupons.