BJ’s Wholesale (BJ) drives digitization to attract buyers – July 21, 2021


BJ’s Wholesale Club Holdings, Inc. (BJ Free Report) continues to advocate giving consumers more flexibility and convenience when shopping online. With consumers increasingly turning to digital transactions, the company has spared no effort to strengthen omni-channel operations, improve digital services, and expand delivery services.

Improving the shopping experience

BJ’s Wholesale has directed resources into expanding digital capabilities to better reach members and provide them with a convenient way to shop, including same day delivery, roadside collection and online purchase, club collection (BOPIC). Management believes that digitally engaged members have a higher average shopping cart and travel more per year than members who only shop at the club.

The company has built a strong digital portfolio with,,,, and BJ’s mobile app. This enables members to buy products, rate them and add coupons digitally to their membership card. Notably, the company has introduced roadside collection and expanded the BOPIC service for fresh and frozen food at all of its locations.

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Initiatives to strengthen digital services

BJ’s Wholesale remains on track with its plan to allow members to use EBT payments when shopping on for club pickup and roadside pickup. Company members in Florida and North Carolina can use their EBT card for SNAP-qualified items during checkout when shopping on for club pickup or contactless roadside pickup. The service allows members to check their card balance and also use multiple payment options.

In its previous efforts to bolster its digital offering, BJ’s Wholesale has added several new features to its app, including easier search and scan functions, personalized product recommendations, and seamless navigation for finding offers and products.

BJ’s Wholesale has signed a three-year exclusive agreement with CommerceHub, a leading e-commerce platform that enables online order processing and delivery solutions. Also encouraging is the company’s partnership with Citizens Pay to provide customers with enhanced online financing solutions for large purchases.

Efforts pay off

We find that digitally-assisted revenue increased 31% in the first quarter of fiscal 2021. On a two-year staple basis, the metric increased 381%, resulting in nearly 7 percentage points of comparable sales in merchandise, excluding gasoline sales. On a stacked basis, the company saw strong growth across all of its digital channels, particularly BOPIC, curb pickup and same day delivery. A considerable part of the digital growth is realized through associations.

Wrap up

Obviously, BJ’s Wholesale leaves no stone unturned to improve top-line performance and expand the customer base, be it through better prices, private label offers, retail initiatives or digital solutions. These efforts have contributed to the growth in membership enrollments and renewals.

What’s impressive is that the stocks of this Zacks Rank # 3 (Hold) company are up 16.1% over the past six months, versus the industry’s 6.1% decline.

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