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BJ’s: A Radical Embraces the Future

By Robin Lewis   |   December 15, 2021

The 2021 Retail Radicals winners represent different sectors of the retail industry and based on their strategic initiatives and innovations, these companies have outpaced the market in delivering key performance metrics during an extremely difficult and challenging year. BJs became an essential retailer during the pandemic and overdelivered in making sure their members were provided for with all-important products to help cope during a stressful year.

Just two years ago, BJ’s Wholesale Club was merely an afterthought for most industry observers who follow the warehouse club sector. With a fraction of the revenue of industry giants Costco and Sam’s Club and a slow growth rate, BJ’s was easy to overlook. But not so fast.

Just two years ago, BJ’s Wholesale Club was merely an afterthought for most industry observers who follow the warehouse club sector. With a fraction of the revenue of industry giants Costco and Sam’s Club and a slow growth rate, BJ’s was easy to overlook. But not so fast.

BJ’s changed the narrative in dramatic fashion during 2020. When the pandemic struck early in the year, Lee Delaney had just taken the reins as CEO, following a two-decade career at consulting giant Bain & Co. and four years at BJ’s in positions of increasing responsibility.

Under Delaney’s leadership, BJ’s turned its comparatively small size (relative to Costco and Walmart-owned Sam’s Club) into a competitive advantage. The company proved nimbler than its peers, rapidly rolling out new capabilities to make shopping safer and more convenient for its members.

Prior to the pandemic, Delaney had already spearheaded investments in omnichannel capabilities, including buy online, pick up in club (BOPIC) and same-day delivery options for ecommerce orders. As the pandemic began to impact consumer behavior in early 2020, the company quickly began testing curbside pickup. It also launched a test of making perishables available for BOPIC orders in some of its clubs.

By the fall of 2020, BJ’s had rolled out curbside pickup including both fresh and frozen items across the entire chain. The warehouse club’s omnichannel offerings quickly became popular with members. Digitally enabled sales surpassed $700 million in fiscal 2020, up from an annual pace of approximately $140 million at the time of the company’s IPO in mid-2018.

As a result, BJ’s revenue rose 17 percent last year, reaching $15.43 billion. That was nearly double the pace of growth at Sam’s Club, which recorded a 9 percent sales increase. It also comfortably exceeded Costco’s 13 percent sales growth over the same period. Excluding gasoline sales (which tend to be quite volatile), BJ’s reported a 21.3 percent increase in comparable club sales for fiscal 2020. Moreover, adjusted net income more than doubled compared to 2019, reaching $429 million.

Tragically, Lee Delaney passed away unexpectedly in April 2021 at the age of 49. But the company remains in capable hands, as long-time BJ’s Wholesale Club CFO Bob Eddy has shifted over to the CEO role. Thanks to its improved operating model, BJ’s is ready to accelerate its expansion over the next few years. With roughly 220 clubs in the U.S., compared to nearly 600 each for Costco and Sam’s Club, BJ’s has plenty of white space to open new locations.

“BJ’s longstanding focus on customer service has developed a loyal following.  Leveraging technology to transform their operating model and bring new services like BOPIC to their customer base has created impressive omnichannel growth. Always looking for new ways to engage and delight their customers, BJ’s is disrupting the warehouse club model, just what we would expect from a Retail Radical.”

Matt Laukaitis, EVP and Global GM, SAP Consumer Industries.

BJ’s impressive transformation during 2020 gives it a well-earned place among The Robin Report Retail Radicals.

Read more on Operations

About Robin Lewis

Robin Lewis is the founder and CEO of The Robin Report. He is an author, speaker, and consultant for the retail and consumer products industries.

He co-authored the book: “The New Rules of Retail.” As a VP at Goldman Sachs, he launched a retail consulting practice. Prior to this, he was an EVP and Executive Editor at WWD, and a VP of Strategy and Business Development at the VF Corporation.

He is frequently requested by C-level management for advice, consultation and strategic presentations: among them are Kohl’s, Bloomingdale’s, JC Penney, Macy’s, Liz Claiborne, VF Corp., Charming Shoppes, Estee Lauder, Ralph Lauren, and Sara Lee, as well as financial firms such as Lion Capital, The Carlyle Group, Goldman Sachs and others. And he’s often quoted in all of the major print and broadcast media: Bloomberg/BusinessWeek; WSJ: Fortune; Forbes; CNBC; CBS; Fox Business; among others.

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Is Our Corporate Culture Failing?

The More Customers Walk Your Store, the More Your Space Is Worth

Key Merchandising Strategies for Economic Uncertainty

Inventory Apocalypse

The LARPing World Comes to Mainstream Retail

CPG Faces a Crisis of Conscience

Why Microplastic Pollution is Still Fashion’s Concern

Pop Goes the Retailer

The New Age of Wellness: Retailers, Listen Up!

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Copyright © 2022 · Robin Lewis, Inc. All rights reserved. Copying or reproducing, by any means whatsoever, of The Robin Report, or any distribution hereof, in whole or in part, without the express written consent of Robin Lewis, Inc. is strictly prohibited. The Robin Report is published for senior executives in the retail, fashion, beauty, consumer products and related industries. The opinions expressed herein are not, and should not be construed as investment or other advice. All expressions of opinion are subject to change without notice.

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