BJ’s Wholesale is seeing a negative impact from economic pressures that have weighed on its gas business in recent months.
However, its retail business continues to face challenges as demand grows unevenly. In response, the company is planning significant in-store changes that could affect the way customers shop.
For the first quarter of 2026, BJ’s comparable club sales rose 6.3% year-over-year, including gasoline sales, the company’s latest earnings report said. Gas is at the forefront of this growth; without it, comparable club sales rose just 1.5% year over year.
Data from a recent report by Placer.ai revealed that visits to BJ gas stations, which offer discounted fuel, have steadily increased over the past two months as gas prices have risen. For example, during the week of March 9, BJ’s gas station visits increased 17.2% year-over-year, and during the week of April 6, visits increased 21.7%.
Gas prices began to rise following the US and Israeli attacks on Iran in late February. Currently, gasoline prices nationwide are around $4.52 per gallon, according to the latest data from the American Automobile Association (AAA). Last month, the average price of gasoline was $4.03 per liter.
In the report, Placer.ai content writer Ezra Carmel wrote that “low-priced fuel is a logical traffic driver in times of high gas prices – reinforcing the value proposition of a warehouse club membership.”
“If fuel prices remain high, members may be inclined to combine shopping trips with filling up, which could increase garage traffic and club spending,” he added.
BJ’s programs are moving significantly as the customer base shifts
During an earnings call on May 22, BJ CEO Bob Eddy said that in April alone, members spent $143 million more at the company’s gas stations than last year.
“The price of fuel increased significantly during the quarter, putting more pressure on members’ wallets,” said Eddy. “At the end of Q1, electricity prices were up almost 50% compared to the beginning of the quarter. In that area, our role was clear: to help take care of our members by delivering value.”
Despite this increase in gas sales, Eddy warned that members of the group continue to withdraw from spending in discretionary areas, as sales growth in these areas remains low during the quarter.
Related: BJ’s Wholesale makes bold move to attract more shoppers
“While the consumer in the broad sense has been resilient in the face of ongoing challenges, we continue to see a stressful situation for low-income households,” he said.
Eddy said “a lot” of BJ’s comparable sales growth during the quarter was driven by higher-income members who are “more engaged” and more likely to shop in stores.
In response to high spending by high-income members, Eddy said BJ’s plans to introduce higher-priced items to its locations to ensure it has “the right conditions for the people who use it.”
“We want to gradually take our assortment to build good, better, better,” he said. “We have too much at a good level, and we need better and better.”
“We’ve seen a strong consumer base, but when you look under the hood, there’s a lot of pressure on low-income consumers, and low-income consumers are trading up a little bit, and the only real growth is coming from affluent customers,” he added. “We want to make sure we’re where the money is and bring the right products to those people.”
BJ’s Wholesale plans to introduce higher-priced products to stores. Photo by Bloomberg at Getty Images
BJ’s vows to return savings to customers
Apart from this upcoming change in the store, Eddy said that BJ’s will also reduce the tax refunds for members, as they are still financially stressed.
This is a change that the company started in the first quarter, leading to a decrease of almost 0.5 points in its sales figures. The move comes after it introduced price increases at its stores last year due to costs.
Two areas where BJ’s is considering using these funds to lower prices are gas (if demand drops) and eggs, as inflation remains high.
Other Merchandise:
“Any source of profit that we can come up with, we will always try to give it back to our members to benefit us in the future,” said Eddy.
It’s important that BJ’s continue to invest in members who are bound to earn money, as many consumers across the country are taking extra steps to save money.
According to a recent survey by the A&M Consumer and Retail Group, this includes consumers switching brands and giving more of their business to retailers that offer lower prices.
How American consumers save money by shopping:
Almost 61% of consumers who make them a few food trip to cut costs.
And, 50% to 60% there is switching to lower price retailers in search of affordable prices.
In addition, 35% plan to buy cheaper products in stores amid financial stress. Source: IA&M Consumer and Retail Group
Chad Lusk, managing director at A&M Consumer and Retail Group, said in a press release that “consumers are once again focusing on brand value in their decision-making, and loyalty is declining.”
As BJ plans to adjust store pricing and assortment, it expects like-for-like club sales, excluding gasoline sales, to increase 2% to 3% year-over-year in fiscal year 2026.
“We put everything into our vision that we know today,” said BJ Chief Financial Officer Laura Felice during the earnings call. “Of course we are looking at the tax situation that is always moving.”
Related: Publix faces threat of consumer boycott after store policy changes
This story was originally published by TheStreet on May 25, 2026, where it appeared first in the Marketing category. Add TheStreet as a favorite source by clicking here.
