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• Like Costco or Sam's Club.
• A membership-based warehouse club similar to Costco, with a stronger regional focus on the East Coast.

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• Membership: Provides access to exclusive savings and bulk purchasing opportunities across a wide range of products and services in clubs and online.
• Groceries & Perishables: A vast selection of fresh produce, meats, dairy, frozen foods, and pantry staples available in bulk quantities.
• General Merchandise: Includes electronics, home goods, apparel, health & beauty products, seasonal items, and various non-food products.
• Fuel Services: Offers discounted gasoline to members at pumps located at many of its warehouse club locations.
• Specialty Services: Provides convenient in-club offerings such as optical centers, tire installation, propane filling, and pharmacy services.

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BJ's Wholesale Club (symbol: BJ) primarily sells to **individuals and households**, though it also caters to small businesses and organizations.

Here are the three main categories of customers it serves:

1. Individual Consumers and Households: This is the largest segment of BJ's customer base. These are individuals and families who purchase groceries, household goods, electronics, general merchandise, and other products in bulk for personal and home consumption. They are typically looking for value, discounts, and convenience associated with one-stop bulk shopping.
2. Small Business Owners: BJ's offers specific business memberships to cater to small businesses, such as restaurants, caterers, convenience stores, offices, and independent retailers. These customers purchase supplies, inventory, food items, and other operational necessities in bulk to manage their business costs and inventory efficiently.
3. Organizations and Non-profits: This category includes various non-profit organizations, schools, churches, community groups, and other institutions. They utilize BJ's for bulk purchases of food, supplies, and equipment for their operations, events, programs, or fundraising activities, benefiting from the wholesale pricing.

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Robert W. Eddy, Chairman, President & CEO

Mr. Eddy joined BJ's Wholesale Club in 2007. He served as Executive Vice President, Chief Financial Officer starting in 2011 and was appointed Chief Administrative Officer in 2018. Mr. Eddy was named President and Chief Executive Officer in April 2021, following the passing of former CEO Lee Delaney, and was appointed Chairman of the Board in June 2023. Prior to joining BJ's, Mr. Eddy was a member of the audit and business advisory practice of PwC in Boston and San Francisco. He played a pivotal role as Executive Vice President, Chief Financial and Administrative Officer during BJ's successful Initial Public Offering (IPO) in 2018. Mr. Eddy currently serves as a director at DICK'S Sporting Goods, on the board of directors and executive committee of the National Retail Federation, and on the College Advisory Board at Babson College.

Laura Felice, Executive Vice President, Chief Financial Officer

Ms. Felice joined BJ's Wholesale Club in November 2016 as Senior Vice President, Controller, responsible for the integrity of financial records. She was appointed Executive Vice President, Chief Financial Officer in April 2021. Before joining BJ's, Ms. Felice worked at Clarks Americas, Inc., a British shoe manufacturer and retailer, from 2008 to 2016, holding various finance management roles including Senior Vice President of Finance. She also worked at PricewaterhouseCoopers LLP from 2003 to 2008. Ms. Felice is a Certified Public Accountant and holds a Master of Accounting and a bachelor's degree in finance and accounting from Boston College. She serves as a board member, vice chair, and finance committee chair for the Massachusetts Society of CPAs, a board member of Broadstone Net Lease, LLC, and a board member of the National Retail Federation Foundation.

Paul Cichocki, Executive Vice President, Chief Commercial Officer

Mr. Cichocki has served as Executive Vice President, Chief Commercial Officer since April 2021, overseeing merchandising, membership, marketing, and analytics. From April 2020 to April 2021, he was Executive Vice President, Membership, Analytics and Business Transformation.

Bill Werner, Executive Vice President, Strategy and Development

Mr. Werner joined BJ's Wholesale Club in 2012. He was appointed Executive Vice President, Strategy and Development in April 2021, where he is responsible for market expansion and key strategic initiatives. His previous roles at BJ's include Senior Vice President, Strategic Planning and Investor Relations from 2016 to 2021, Senior Vice President, Finance from 2013 to 2016, and Vice President, Accounting and Financial Reporting from 2012 to 2013. Before joining BJ's, Mr. Werner was a director in the deals practice at PricewaterhouseCoopers LLP from 2007 to 2012.

Rachael Vegas, Executive Vice President, Chief Merchandising Officer

Ms. Vegas joined BJ's Wholesale Club in 2021. Prior to BJ's, she was Senior Vice President, eCommerce Merchandising and Financial Services at H-E-B Grocery Company. Her experience also includes serving as Chief Merchant at Brandless and holding various leadership positions over 13 years at Target, including Vice President in the company's center store division. She also worked in various roles at Food Lion and Hannaford Supermarkets.

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Key Risks to BJ's Wholesale Club (BJ)

1. Dependence on Membership and Member Spending: BJ's business model is fundamentally built on attracting and retaining a large and loyal membership base. The company's financial performance is directly tied to membership fee income, as well as the spending patterns of its members. Factors that could negatively affect membership acquisition, retention, or the discretionary spending of existing members, such as increased competition, changes in consumer preferences, or a perceived decrease in the value proposition, pose a significant risk to the business.
2. Economic Conditions and Consumer Behavior: BJ's Wholesale Club is highly susceptible to domestic and international economic conditions. Elevated inflation rates, rising interest rates, and general uncertainties in financial markets can significantly influence consumer and small business spending patterns and debt levels. A decline in consumer confidence or purchasing power could lead to reduced sales of merchandise and services, directly impacting the company's revenue and profitability.
3. Supply Chain Disruptions: The ability of BJ's to consistently procure merchandise at competitive prices and have it available for members is crucial. The company is dependent on vendors to supply quality merchandise in a timely manner. Disruptions in the global or domestic supply chain, including issues with manufacturing, transportation, or labor, can lead to inventory shortages, increased costs, and an inability to meet member demand, thereby negatively affecting sales and member satisfaction.

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The intensifying competition from online retailers and sophisticated delivery services in the bulk and value grocery segment. The accelerated growth and investment by e-commerce giants (such as Amazon, Walmart, and Target) in their online grocery platforms, same-day delivery capabilities, and third-party delivery partnerships (e.g., Instacart, Shipt) offer consumers increasing convenience and value for bulk purchases without requiring a dedicated wholesale club membership. This trend challenges BJ's core value proposition by providing alternative avenues for obtaining large-quantity goods with greater ease, potentially diminishing the perceived necessity and unique benefits of a physical club membership and visit for a growing segment of consumers.

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BJ's Wholesale Club (symbol: BJ) operates primarily in the eastern United States across 21 states. The company's main products and services encompass a variety of offerings typical of a membership-only warehouse club. These include groceries, fresh foods, household essentials, general merchandise, and gasoline.

The addressable markets for BJ's Wholesale Club's main products and services in the U.S. are as follows:

• Warehouse Clubs & Supercenters Market (U.S.): The market size for the Warehouse Clubs & Supercenters industry in the United States is estimated at $768.3 billion in 2025. This market has experienced a growth at a compound annual growth rate (CAGR) of 3.1% between 2020 and 2025.
• Grocery Retail Market (U.S.): The U.S. Grocery Retail Market is valued at over $900 billion in 2025, with a forecasted increase of more than 4% for that year. Another report indicates that the Supermarkets & Grocery Stores industry in the United States has an estimated revenue of $883.1 billion in 2025.
• General Merchandise Stores Market (U.S.): The General Merchandise Stores sector in the United States is valued at $899.3 billion for 2025. This market includes various essential products such as household goods, electronics, clothing, toys, and personal care items.
• Fuel Dealers Market (U.S.): The market size for the Fuel Dealers industry in the United States is estimated at $49.3 billion in 2025. This industry's revenue has grown at a CAGR of 6.7% over the past five years to reach this estimate.

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Expected Drivers of Future Revenue Growth for BJ's Wholesale Club (BJ)

BJ's Wholesale Club (NYSE: BJ) is poised for continued revenue growth over the next 2-3 years, driven by a multi-faceted strategy that leverages its membership model, digital advancements, and physical expansion. Key anticipated drivers include:

1. Membership Expansion and Increased Higher-Tier Penetration: BJ's has consistently demonstrated robust growth in its overall member count and a rising proportion of higher-tier memberships, which contribute to increased membership fee income. The company reported reaching a record 8 million members by Q2 fiscal 2025. Higher-tier memberships accounted for 41% of the total in Q2 fiscal 2025, an all-time high. The annual membership fee increase, effective January 2025, is also expected to further boost membership fee income. This focus on growing and upgrading its member base enhances customer lifetime value and retention.
2. Strategic Club Expansion: The company has outlined aggressive plans for physical expansion, intending to open 25 to 30 new clubs and gas stations over the next two fiscal years. This expansion into new and existing markets, including the entry into its 21st state with a location in Louisville, Kentucky, and plans for the Dallas-Fort Worth area, is a significant driver for increasing its geographic footprint and member reach.
3. Accelerated Digital Sales Growth and Omnichannel Enhancement: BJ's continues to heavily invest in its digital capabilities, with digitally enabled comparable sales showing substantial year-over-year growth (34% in Q2 fiscal 2025, 35% in Q1 fiscal 2025, and 26% in Q4 fiscal 2024). These advancements include enhancing its mobile app, curbside pickup, buy-online-pick-up-in-club (BOPIC), and same-day delivery services, with over 90% of digital sales fulfilled through clubs. Digitally engaged members tend to shop more frequently and have higher average purchase values, contributing significantly to overall sales growth and loyalty.
4. Improved Merchandise Assortment and Private Label Offerings (Fresh 2.0): The "Fresh 2.0" initiative, which focuses on expanding high-quality perishable offerings in areas like meat, seafood, and produce, has consistently driven strong comparable sales growth in these categories. This strategy aims to position BJ's as a primary weekly shopping destination for essentials, alongside diversifying and enhancing its private-label brands to further appeal to budget-conscious consumers and increase membership sign-ups and renewals.
5. Consistent Traffic Growth and Market Share Gains: BJ's has reported continuous traffic growth, marking its fourteenth consecutive quarter of growth in Q2 fiscal 2025. This consistent increase in foot traffic, coupled with market share gains in its core merchandise categories and fuel business, underscores the resonance of its value proposition with consumers, even in a dynamic economic environment.

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Capital Allocation Decisions for BJ's Wholesale Club (BJ)

Share Repurchases

• BJ's Wholesale Club authorized a new $1 billion share repurchase program in November 2024, set to expire in January 2029. This program replaced a previous $500 million authorization that was fully utilized in fiscal 2024.
• The company repurchased $190.9 million of common stock in fiscal 2024.
• In the first six months of fiscal 2025, BJ's repurchased $47.4 million of common stock, with $952.6 million remaining available under the new authorization as of the second quarter of fiscal 2025.

Share Issuance

• No significant share issuances by BJ's Wholesale Club for capital raising purposes have been reported within the last 3-5 years.

Inbound Investments

• In April 2025, Reliance Industries announced its acquisition of BJ's Wholesale Club for $14 billion.

Outbound Investments

• In May 2022, BJ's Wholesale Club acquired the assets and operations of four distribution centers and a related private transportation fleet from Burris Logistics.
• As of September 2025, reports indicate that BJ's has not made other significant investments or acquisitions.

Capital Expenditures

• BJ's Wholesale Club anticipates approximately $800 million in capital expenditures for fiscal year 2025 (ending January 31, 2026).
• The primary focus of these expenditures includes opening 25-30 new clubs over the next two fiscal years, with plans to enter new markets such as Dallas-Fort Worth in 2026, and investing in an ambient distribution center.
• Investments are also directed towards digital transformation, enhancing online conveniences and capabilities like buy online pick up in club and same-day delivery.