BJ’s Wholesale, one of the top three warehouse clubs in the US, continues to see cautious consumer behavior in its stores. With high competition from Costco, Walmart’s Sam’s Club and other competitors, BJ’s doubled down on a bold strategy to attract more customers.
In the fourth quarter of 2025, BJ’s saw like-for-like club sales (excluding gas sales) rise 2.6% year-over-year, while operating income fell 0.2%, according to its latest earnings report.
Its sales performance during the quarter lagged behind top rivals Costco and Sam’s Club. Excluding gas sales, Costco’s US comparable sales rose 5.9% year-over-year, while Sam’s Club rose 4% over the same period.
During an earnings call on March 5, BJ CEO Bob Eddy said the company will “navigate through a volatile environment characterized by increasingly cautious, value-seeking consumers, tax-related and geopolitical uncertainty, and broader macroeconomic instability” through 2025.
“Value remains at the core of how we serve our members, and we continue to see that apply at all income levels, especially in an age where many consumers are more selective about spending,” said Eddy.
While sales of groceries, perishables, consumer electronics and apparel rose during the fourth quarter after introducing deals, BJ’s saw sales decline in its domestic and seasonal categories.
“We had a strong quarter at home and in our seasonal businesses,” said Eddy. “Those were under the tax. That’s where most of our reductions in our assets took place.”
The ongoing trend for consumers to be more conscious of their spending comes amid economic pressures, such as higher inflation, which has led to lower consumer sentiment. Many Americans have been cutting back on their spending in key areas as their finances worsen, according to a recent study from EY-Parthenon.
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Almost 1 in 4 US buyers he felt bad financially in December than last month.
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About 70% flagged feeling moderate or severe anxiety about the high cost of living, especially about groceries.
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I the top three places where consumers are reduce spending tourism, restaurants and entertainment.
Source: EY-Parthenon
Consumers will continue to realize value and choice “through 2026,” which will “continue to shape the competitive landscape of retailers and brands,” warned Will Auchincloss, EY-Parthenon Americas retail industry leader, in a press release.
“Consumers are becoming more selective, and everyday essentials are at the forefront as families reassess where they can fall back on,” added Auchincloss. “Squeezed budgets are forcing retailers to double down on value, price discipline, and daily value to win by 2026.”
To attract customers in this challenging retail environment, BJ’s is not only focusing on providing value but also on convenience by expanding its retail space nationwide.
By 2025, BJ opened 14 new clubs in eight different states, a move that brought positive results to the company.
“These clubs as a whole are delivering sales, memberships, and profits that exceed expectations,” Eddy said during the call.
Related: Sam’s Club makes big product change as shoppers cut back
He said the membership of these clubs has increased by more than 30 percent compared to the company’s initial expectations. On-time renewal rates in these areas are also 9% higher than the company chain average.
“This new group of clubs is the best group of clubs we’ve opened in all the years since we went public,” said Eddy.
BJ’s plans to accelerate this growth over the next few years, a strategy that threatens its top competitors, Costco and Sam’s Club.
“We are on track to launch our commitment of 25 to 30 new clubs in 2025 and 2026,” said Eddy. “As we look at the group’s new pipeline, we can expect this pace of expansion to continue in the coming years.
Next month, BJ’s plans to enter the Dallas-Fort Worth market by opening a new club, an area Eddy says is growing rapidly.
Other Merchandise:
“We heard this week that there are more homes under construction in the Dallas-Fort Worth market than in the entire state of California,” he said. “It’s definitely a very high-growth area.”
Currently, Costco has about 634 locations across the US, while Sam’s Club has more than 600. BJ’s lags behind with about 280 store brands.
BJ’s departure comes as its biggest rivals also plan to rapidly expand their retail footprint.
Costco CEO Ron Vachris said during an earnings call last week that the company plans to open about 30 new clubs around the world each year. Also, Sam’s Club previously announced plans to open 15 new clubs around the world every year.
As BJ’s focuses on expanding stores, it expects its same club sales (excluding gas) in fiscal year 2026 to grow 2% to 3% year-over-year.
Related: Kroger adds generous offer to customers as grocery prices rise
This story was originally published by TheStreet on March 8, 2026, where it appeared first in the Marketing section. Add TheStreet as a favorite source by clicking here.
